Reasons to Invest in Mozambique
In the last decade Mozambique has received a substantial amount of Private Investment. According to the CPI only in the last 5 Years, Mozambique received an investment volume of approximately 20 Billions of American Dollars.
In recent years Mozambique, but specifically Maputo City has seen the real estate sector grow significantly with a focus on residential condominiums destined for the upper class, with most of these buildings being erected in the Prime zone of Maputo City. In this context, there was a need to adjust the real estate market to the middle and lower middle classes. That said, some projects were approved and implemented to meet the demands of the middle class. However, most of these projects were temporarily paralyzed due to a period of political and financial instability per hour exceeded.
Thus, there is now a great need to continue with the existing projects and to seek and leverage new projects in the real estate sector with a special focus on projects destined for the middle and lower middle classes.
Moz Discounted Houses hereby invites real estate investors as well as other sectors to invest in Mozambique showing some of the advantages of investing in our territory.
Main Reasons to Invest in Mozambique
The main attractive factors of investment in Mozambique, besides the abundance of natural resources, are the various fiscal incentives granted, namely:
Import duties on capital goods;
Taxes on equity or loans and interest thereon.
50% – Industrial Contribution Tax, during the period of up to 10 fiscal years; 80% – When carried out in the provinces of Niassa, Cabo Delgado and Tete; 65% – In the case of projects carried out outside the provincial capitals.
The Sectors of activities entitled to tax exemption are:
– Agriculture and livestock;
– Transformation industry;
– Fishing and Derivatives;
– Health and Education;
– Infrastructures (road, rail, port and airport);
– Telecommunications, energy and water.
To attract investment, Mozambique has created policies that protect foreign investors operating in the country, one of which is the Investment Promotion and Reciprocal Protection Agreements.
Mutual investment promotion and protection agreements are bilateral instruments containing binding measures designed to create more favorable conditions for investment by investors from one of the signatory states in the territory of the other, ensuring, on a reciprocal basis, the most favorable treatment of investors and the guarantee of protection and full security of the investments already made.
Mozambique has entered into agreements for the promotion and reciprocal protection of investments with the following countries: – South Africa; – Portugal; – Cuba; – Denmark; – Vietnam; – Finland; – United States of America; – United Kingdom; – Belgium; – Luxembourg; – Netherlands; – Germany; – the Netherlands; – Sweden; – China; – Indonesia; – Spain; – Italy; – Egypt; – Algeria; – Mauritius.
In short, Mozambique has a system of incentives for foreign investment that includes three main components:
- The right to repatriation of invested capital and profits obtained;
- Tax and customs incentives;
- The guarantee of security and protection by the Mozambican State for investments and private property.
These aspects along with the wide range of sectors available for investment make Mozambique an authentic paradise for foreign companies that want to invest.
Helder Cristiano Sacama
Co-Founder & CEO