Business and Investment Opportunities in the Industrial Sector

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1 REPUBLIC OF MOZAMBIQUE MINISTRY OF INDUSTRY AND TRADE NATIONAL DIRECTORATE OF INDUSTRY Business and Investment Opportunities in the Industrial Sector Mozambique Business Luncheon JHB 28 th June 2012 By:Dr. Nicolau Sululo

2 Presentation Layout The Industrial Strategy Factors for Promoting Industrialization Main Investment Opportunities in the Industrial Sector Other opportunities

3 Industrial Policy & Strategy(2007) 3 3 The Industrial Policy & Strategy provides recommendations and guidelines on how to achive an increase in production, productivity and quality within the industrial sector. It also defines the industrial priorities based on the availability of resources within the country. Industrial Priorities: Food processing Furniture Construction materials & Equipment Packaging Textiles and Apparel Metals Printing Recycling

4 Factors for Promoting Industrialization Political, Social and Macroeconomic Environment Young Population Investiment Law (Code of Fiscal Benefits) Geografical Structure(Land, Sea, Air) Availability of Resources Water & Energy Minerals (coal and e gas) Others

5 Main Investment Opportunities in the Industrial Sector Manufacturing Industry Energy Others Mining Infrastructure

6 Manufacturing Industry

7 The Textiles & Apparel Sector 7 Due to the importance of this sector, the Government has developed the Strategy for the Development of the textile and apparel sector Strategic Objectives: Increase cotton production; Establish a spinning and fabric forming industry; Attract export orientated investment in the apparel sector; Promote the production of traditional textiles and apparel.

8 The Textiles & Apparel Sector All the Value Chain of Cotton: Ginning of Cotton; Spinning Weaving Clothing Season Cotton Seed (Tons) Cotton Fibre (Tons) 2007/ / / /

9 The Packaging Sector 9 9 Variety of agro-food products available with export potential; specifically cashew, dried fruit and fruit juices; Export potential to SADC market; The plastics production sector is relatively advanced technically with a good product range; Plastics recycling companies in place; Some good quality printing of paper-based products; There is no local production of paperboard cartons, paper sacks or bags, metal closures and glass.

10 Packaging: Packaging Industry Cans; Glass Bottle; Plástic Bottle; Card Box; Plastic Box; Paper Bags; Raffia Bags; Sisal Bags. 10

11 Sanitary Ware Industry Indústrias de loiça sanitária Raw Materials Common Clay in all country Kaolinite Ribaué, Muiane, Gilé, Ilé Kaolin Nuaparra, Marrapino, Gilé, Ilé Feldspar Nacala, Manica, Alto Ligonha, Ribaué

12 Wood Industry All value chain, but mainly on produts with high value added: Building Materials; Furniture.

13 Leather Industry and downstream Herds of Cattle and Goats Livestock Census, 2009/2010 Cattle Goats Maputo Gaza Inhambane Manica Tete

14 Energy

15 Hydro power Project MOZAMBIQUE REGIONAL TRANSMISSION BACKBONE (CESUL) Capacity: 2650 MW Transfer Capacity REINFORCEMET OF POWER TRANSMISSION LINE FOR CENTRE-NORTH (2ª LINE) Capacity: 220 kv Cahora Bassa Norte Hydropower Plant (CHB NORTH) Capacity: 1245 MW Lúrio Hydropower Plant Capacity: 120 MW Location (District/City and Province) The Transmission Line will link Matambo Substation (Tete Province, District of Changara) up to Marracuene Substation (Maputo Province) The Transmission Line will link Chimuara (Sofala Province, District of Caia) and Nacala (Nampula Province) Província de Tete (Distrito de Cahora Bassa) Cabo Delgado Province (Chiúre Amount (US$) Promoter Ministério da Energia Direcção de Estudos e Planificação Maputo Av. 25 de Setembro, 1281, 3o andar Tel : Fax : Web:

16 Downstream Industries for the Transmission Backbone Cables Cement Transformers Transport

17 Mining

18 Mining Projects and Ventures Graphite, Ancuabe Marble, Montepuez Rovuma (Cu, Ni, Zn) Phosphate, Monapo Moma, Heavy Sands Moebase, Heavy Sands, Magnetite/Ilmenite. Coal: Moatize, Benga e Ncondezi Heavy Sands: Rio Tinto Heavy Sands of Chibuto 18

19 Infrastructure

20 Infrastructures for Transport

21 INFRASTRUCTURE in Nacala Special Economic Zone Nacala Corridor: Railway Network linking Nacala to Niassa province and to Malawi and then to Zambia. Nacala Port: Deep Water Natural Port in East Africa Coast. Nacala Airport: Acess to Malawi, Zambia, Tanzania, Asia, Middle East, Central Africa.

22 Other

23 Downstream Industries to the mega-projects Food Industry Iron and Steel Industry (coal) Cement Companies - Public Infrastructures Textil Industry SADC, AGOA

24 Cement Industry ocurrently there are 6 factories in opration with the total capacity of Ton/year; othere are 9 factories on project implementation phase with about of Ton/year; othere is in pipeline a project of a cement factory with production estimates of ton/year; oit is expected more investments due to market demand (growing construction industry) and the availability of local raw materials (limestone).

25 Industrial Parks Moatize in Tete Dondo, Sofala Beluluane, Maputo 25

26 Heavy Industry Metal-mechanics industry Heavy metals industry Metal fabrication Steel Industry

27 CONTACT DETAILS Dr. Nicolau Sululo Counselor (Economic and Trade) High Commission of the Republic of Mozambique in South Africa Tel Fax: Ministry of Trade and Industry National Directorate of Industry Tel.: Fax : Business Centre Information: Website:

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