ABOUT MOZAMBIQUE

Mozambique, officially the Republic of Mozambique, is a country located in Southeast Africa, along the Indian Ocean coastline. It is the 16th largest country in Africa by area. The capital and largest city of Mozambique is Maputo, situated on the southern coast. According to the World Bank, Mozambique is classified as a Low-Income Economy, actively working towards economic development and diversification. The currency of Mozambique is the Mozambican Metical (MZN). As of June 2025, 1 Indian Rupee is approximately 1.34 Mozambican Metical. The population of Mozambique was approximately 34.63 million as of 2024. Its neighboring countries include Tanzania, Malawi, Zambia, Zimbabwe, South Africa, and Eswatini. The official language of Mozambique is Portuguese, though many indigenous languages like Makhuwa, Changana, and Sena are widely spoken across different regions. The majority of the Mozambican population practices Christianity, with a significant Muslim population and followers of traditional beliefs. Mozambique has several international airports, including Maputo International Airport (MPM), Beira International Airport (BEW), and Nampula Airport, providing crucial air links to various parts of the world. With a long Indian Ocean coastline, Mozambique boasts key commercial seaports such as Maputo, Beira, and Nacala. These ports are vital economic arteries, facilitating the import and export of goods and serving as strategic gateways for landlocked neighboring countries.

The standard corporate income tax rate in Mozambique is 32%. However, for dividends, interest, and royalties paid to non-resident companies, a 20% withholding tax generally applies, which may be reduced under existing tax treaties. Establishing a business in Mozambique requires adherence to its commercial code and regulations. Foreign investors can typically set up various types of companies, including Limited Liability Companies (Lda – equivalent to LLC), Public Limited Companies (SA), as well as Branch Offices or Representative Offices. A Limited Liability Company (Lda) is a popular choice for small and medium-sized businesses, allowing foreign investors to own 100% of the company.

Opesh Group of companies can assist foreign investors throughout the due diligence process in Mozambique, including financial planning, navigating the registration process, identifying suitable business options, and, if required, helping to find rental properties for office spaces. We also provide guidance on the specific procedures for establishing Lda or corporate business setups in Mozambique.

Types of Business which can be started in Mozambique:

• Natural Gas & Energy: Mozambique possesses significant offshore natural gas reserves, particularly in the Rovuma Basin, making the energy sector a primary driver of foreign investment. Opportunities abound in gas exploration, extraction, liquefaction, and associated infrastructure development.
• Mining: Rich in mineral resources, Mozambique offers considerable opportunities in the mining sector. Key minerals include coal, titanium, tantalite, graphite, and gemstones. Investment is sought across the value chain, from exploration to extraction and processing.
• Agriculture: With vast arable land and a favorable climate, agriculture is a crucial sector. Opportunities exist in commercial farming (e.g., sugarcane, cotton, tobacco, cashews, maize), food processing, and enhancing agricultural productivity through technology and infrastructure.
• Fisheries: Mozambique’s extensive coastline and rich marine life offer significant potential for commercial fishing and aquaculture. Investments in sustainable fishing practices, processing facilities, and value-added seafood products are highly prospective.
• Tourism: Mozambique boasts stunning beaches, national parks, and diverse cultural heritage, making tourism a growing sector. Opportunities include developing resorts, eco-tourism lodges, and related services to attract both regional and international visitors.
• Infrastructure & Construction: Significant infrastructure development is ongoing or planned in Mozambique, including ports, railways, roads, and energy transmission lines. This creates substantial opportunities for construction companies and related service providers.
• Logistics & Transport: Given its strategic location and extensive coastline, Mozambique serves as a key transit hub for landlocked Southern African countries. Investment in logistics, warehousing, and transportation services is essential to support trade.
• Manufacturing: Opportunities exist for import substitution and value addition through local manufacturing, especially in areas like agricultural processing, light consumer goods, and construction materials.

Advantages of Starting Business in Mozambique:

• Abundant Natural Resources: Mozambique is endowed with significant natural gas, coal, and other mineral resources, providing a strong foundation for resource-based industries and attracting substantial foreign direct investment.
• Strategic Location & Ports: Its long coastline and well-positioned ports (Maputo, Beira, Nacala) offer critical access to the Indian Ocean and serve as vital trade corridors for landlocked Southern African nations, enhancing its regional connectivity.
• Untapped Market Potential: Many sectors in Mozambique are still developing, offering considerable untapped potential and opportunities for businesses seeking less competitive markets and significant growth prospects.
• Growing Economy: Driven by large-scale projects in natural resources and ongoing infrastructure development, Mozambique’s economy is expected to continue growing, creating a dynamic environment for investment.
• Government Initiatives to Attract FDI: The Mozambican government is actively working to improve the business environment and attract foreign direct investment through various incentives and policy reforms.
• Young and Growing Population: A youthful and expanding population can provide a growing consumer base and a potential workforce for various industries.

Business Opportunities for Indians in Mozambique:

India and Mozambique share strong historical ties and growing economic cooperation. Indian investors have a significant presence, particularly in the natural gas and coal sectors. There are numerous opportunities for Indian businesses to further expand their investments and trade with Mozambique.

• Energy Sector (Oil & Gas): This is a key area of Indian investment. Indian companies like ONGC Videsh Ltd. and Oil India Ltd. already hold significant stakes in Mozambique’s gas blocks. Further opportunities exist in gas infrastructure, downstream industries, and renewable energy projects.

• Mining: Indian companies with expertise in coal, iron ore, and other mineral extraction can find lucrative opportunities in Mozambique’s mining sector. There’s potential for investment in exploration, extraction, and mineral processing.

• Agriculture & Food Processing: India’s experience in agriculture can be highly beneficial. Opportunities include commercial farming of various crops, developing food processing units (e.g., cashew processing, sugar production), and improving agricultural value chains.

• Infrastructure Development: Indian infrastructure companies can participate in building critical infrastructure such as roads, railways, ports, power transmission lines, and housing projects, supporting Mozambique’s development goals.

• Pharmaceuticals & Healthcare: Given India’s strength in pharmaceuticals, there’s scope for setting up drug manufacturing units, supplying affordable medicines, and investing in healthcare facilities and services to improve access and quality.

• Manufacturing: Indian manufacturers can explore opportunities in setting up plants for consumer goods, construction materials, agricultural machinery, and other products to serve the local and regional markets.

• IT & Telecommunications: As Mozambique’s digital infrastructure grows, Indian IT companies can offer services in software development, IT consulting, digital solutions, and expanding telecommunications networks.

• Imports & Exports: Strengthening bilateral trade remains a key area. Indian businesses can explore importing raw materials and energy resources from Mozambique, while exporting a range of finished goods and machinery.

  • Major items which are exported from Mozambique to India: Coal, Petroleum gas, Unwrought aluminum, Titanium ores, Precious stones, Cashew nuts, Pulses.
  • Major items which are imported in Mozambique from India: Refined petroleum products, Pharmaceuticals, Machinery, Iron and steel products, Cereals (especially rice), Textiles, Vehicles.

Key Economic Indicators (Approximate, as of 2024 estimates):

• GDP: ~$17 – $18 billion
• GDP Growth: ~1.8% – 3.7% (with potential for higher growth driven by large projects)
• Ease of doing business rank: Around 138 (World Bank 2019 report, more recent data may vary)
• GDP per Capita: ~$500 – $600

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