Country profile Mozambique

Number of Dutch companies active: 20
Population: 31 million
Area: 799,380 km² (19 times the size of the Netherlands)
GDP growth: 2.2% (2019) | -1.2% (2020)
Head of state: President Filipe Jacinto Nyusi

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NABC and Mozambique

NABC organised a webinar about doing business in Mozambique on June 30th, 2020. The recording is available via our YouTube channel.

In May 2017 NABC organised a business forum during the visit of President Filipe Nyusi. More than 25 Private Sector representatives and senior Government Officials were present together with the president. The focus was on Agribusiness, Energy, Maritime, Logistics and Construction and Services Sectors.

In 2016 NABC, in cooperation with Wageningen University & Research organised a trade mission to both Mozambique and South Africa. The key focus areas were the Agri-business, Maritime and Offshore sectors. More specifically: port development and gas related infrastructure. Information was disseminated about the agricultural sector of Mozambique. During the mission delegates engaged with stakeholders from both the public and private sectors.

In 2015 NABC organised a trade mission to Mozambique together with Wageningen University & Research and local partner the Zambezi Valley Development Authority. The mission focused on promising sub-sectors of agri-business. Areas of focus were potatoes, horticulture, aquaculture, dairy and poultry.

In 2022 NABC will host a webinar on investing in Lusophone Africa, which will touch on doing business in Mozambique and also highlight the opportunities for Dutch companies.

Investment climate

Following three years of slow economic growth, driven by a combination of the lingering impacts of Mozambique’s 2016 hidden debt crisis and the devastating cyclones in 2019, 2020 was supposed to be Mozambique’s breakout year. While the economy registered its first contraction in 2020 in nearly three decades (due to COVID-19), growth is expected to rebound over the medium term, reaching about 4 percent by 2022.

Despite some challenges, Mozambique has plenty to offer Dutch entrepreneurs. The EU signed an Economic Partnership Agreement (EPA) on 10 June 2016 with the  Southern African Development Community EPA Group comprising Mozambique, Botswana, Lesotho, Namibia, South Africa and Swaziland. Under this agreement, the EU guarantees 100% free access to its market. In turn, Mozambique has partially opened its market to certain products imported from the EU; i.e. reduction of customs duties varying from 10% to 2%.

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The energy sector is a promising one. Many households are still not connected to the national power grid and are now paying more for electricity by the use of diesel and generators. This means the government is planning to increase the number of households on the power grid and will most likely use foreign experts and contractors. Furthermore, the government announced the greater Maputo Water Supply expansion project which aims to increase the accessibility to clean water in the greater Maputo area.

The agriculture sector of Mozambique provides good opportunities because only a fraction of the arable land is currently used for agriculture. Mozambique still needs to import vegetables as the current supply cannot satisfy the local demand. In order to achieve this, there is a demand for quality seeds and other forms of agri related input.

The gas fields there were found offshore northern Mozambique, on the border with Tanzania, are described as the largest off-shore gas field discovered in recent times. Numerous Dutch companies active in the oil and gas sector are active in Mozambique.

Diplomatic relations

Netherlands

Embassy

There is a Dutch embassy in the Maputo, the capital of Mozambique. The current Dutch representative is Ambassador Ms. Henny de Vries. She took office in 2018 after working at the department of foreign affairs since 2002.

Mozambique

Embassy

Mozambique is represented in the Netherlands via its embassy in Brussels, led by Ambassador Ms. Berta Celestino Cossa.

Presence of Dutch companies

There are more than 20 Dutch companies with a permanent representation in Mozambique. However, many more are trading or interacting with the country in a different way. Sectors where Dutch companies in Mozambique are mainly active in are water, agriculture, oil and gas, renewable energy, maritime, infrastructure and logistics.

Núria Vlonk-Cunha Soares

Head of Community, Events & Africa Insights Desk