Nicola Jenvey
8 April 2008
Johannesburg — The economy, which has grown eight-fold, is exporter-friendly.
THE Mozambique economy has grown eight-fold during the past 15 years, and although the balance of trade is still skewed in SA's favour, there are opportunities for local companies to invest or export goods and expertise across the border.
In the current year economic growth is expected to exceed 8%, which will make Mozambique the fourth-largest market in the South African Development Community (SADC).
Addressing an SA-Mozambique Chamber of Commerce trade and investment conference in Durban last month, Maputo mayor Eneas da Conceição Comiche called on businesses to forge "strong public- private partnerships" for mutual benefit.
The capital city implemented a 10-year municipal infrastructural upgrade project last year that could also form the basis for closer bonds between SA and Mozambique. Planned projects include upgrading Maputo airport to boost capacity and services; upgrading the central business district, museums and port facilities to boost tourism potential; upgrading access roads and drainage systems and building an international conference centre and a 42000-seat national stadium.
The opportunity exists for local companies to tender on these projects, thus exporting their expertise while developing the human capacity in the neighbouring country, as Mozambique has fairly stringent laws on the number of foreigners that can be employed within companies. Comiche said tenders for the Maputo zoological gardens relocation and the upgrading of a 2000ha informal settlement would be released shortly.
Mozambique Tourism Vice-Minister Rosário Mualeia identified agriculture, mining, tourism, electricity, energy, water, forestry and aquaculture as offering the greatest investment potential.
However, management consulting firm Austral/Cowi MD Luis Magaço acknowledged that bureaucracy and a lack of understanding on local and municipal government structures posed challenges to businesses seeking to invest in Mozambique.
Legislation is based on the Napoleonic Code rather than Roman-Dutch law, causing potential confusion for South Africans conducting business in the country for the first time. However, on the upside, Mozambique is implementing a corporate governance code in line with international best practices and the country offers investment opportunities for anyone wanting to do business.
The SA-Mozambique Chamber of Commerce was born out of overwhelming interest on the part of South African businesses and investors in the neighbouring country. The organisation aims to contribute towards sustainable development and economic growth for SA and Mozambique by providing a service to the business community that facilitates the access to information and assistance and eventually possible partnerships.
The inaugural conference offered high-ranking officials and businesses the opportunity to explore bilateral trade and political links. This was particularly in line with the New Partnership for Africa's Development (Nepad) objectives for regional integration.
Trade and industry department bilateral economic relations unit head George Monyemangene urged South African businesses to investigate opportunities in Mozambique, particularly as the region prepares for hosting the Fifa Soccer World Cup in 2010.
"The business community must fully exploit these opportunities, recognising the event as a regional coup," said Monyemangene.
The Lebombo spatial development initiative linking northern KwaZulu-Natal, southern Mozambique and eastern Swaziland, and the Maputo Development Corridor linking the capital city via road and rail infrastructure with Gauteng, had both played significant roles in boosting economic opportunities and growth, he said.
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