The American Embassy in Mozambique - in collaboration with the U.S.-Mozambique Chamber of Commerce, Center for Business Promotion, and the Confederation of Business Associations - is hosting a two-day Trade and Investment Conference in the capital Maputo this week.
Todd Chapman, chargé d'affaires at the embassy - there hasn't been a U.S. ambassador in place since 2007 - says a major focus is making U.S. companies, particularly those operating next door in South Africa, aware of what Mozambique has to offer. Excerpts from his interchange with AllAfrica:
What is the background to the conference?
We organized a similar conference last year (June 2008) which focused on introducing U.S. investors already located in South Africa to the opportunities here in Mozambique. Building on the success of last year's conference, this year's event, which will be opened by Mozambican President Armando Guebuza, highlights the U.S. Government's commitment to promoting U.S. trade and investment opportunities in Mozambique and providing the best possible services to the U.S. private sector in this emerging market.
What resources and opportunities does Mozambique offer to prospective investors?
With one of the fastest growing economies in Africa in the past decade, Mozambique provides opportunities for investment and trade in a number of sectors, but we are prioritizing the following four sectors: agriculture, mineral resources, energy, and tourism.
For example, over 80 percent of Mozambique's arable land remains unused, providing rich opportunities for investors engaged in the agricultural sector. The country's mineral resources have already attracted considerable international attention, but many significant investment opportunities remain.
Mozambique's broad expanses of land and untapped hydropower resources provide opportunities in the renewable energy market. Several investors have already noted that Mozambique's geographic location on the south-eastern coast of Africa is strategic for reaching export markets in Europe, the Middle East, and the Indian sub-continent; Mozambique's pristine beaches and rich ecosystems are also proving to be quite a draw for international tourists.
Two of Mozambique's closest neighbors are South Africa, which has an economy that dwarfs all others on the continent, and Zimbabwe, with an economy in free fall. Has does this impact Mozambique's economy and impact investor attitudes?
South Africa is an important economic partner for Mozambique. South Africa is both a source of investment and an attractive market for Mozambican exports, whether of energy, mineral resources or agricultural products. For American investors, often times South Africa is the first point of entry into the region of southern Africa; expanding activities into Mozambique can prove to be a very good option. Some U.S. investors have found it advantageous to partner with South Africans who already have experience in the Mozambican market.
Zimbabwe's economic difficulties have certainly impacted central Mozambique - the "Beira corridor" provides Zimbabwe with that country's most direct access to the Indian Ocean. Any future economic improvement in Zimbabwe will certainly benefit Mozambique.
How many U.S. firms are already active in Mozambique?
At least 50 U.S. firms have an in-country presence in Mozambique. Anadarko Petroleum, a Texas-based oil company, is exploring for oil. Cargill and Dunavant are growing cotton. Coca-Cola is expanding its operations. Chiquita is working with local producers to expand significantly the country's banana production. We are finding that an increasing number of the largest U.S. companies are now giving Mozambique a serious look, which is one of the motivations for hosting the Investment and Trade Conference.
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What opportunities have opened up as a result of the Millennium Challenge Corporation compact the U.S. government signed with Mozambique two year ago?
Implementation of the U.S.$507 million MCC Compact with Mozambique which focuses on roads, water and sanitation, land tenure, and agriculture is proceeding well, with many engineering and design contracts already signed. Companies from around the world have bid and won MCC contracts. Business opportunities under the MCC-funded Compact are always posted on MCC's website (www.mcc.gov), on the Millennium Challenge Account's website (www.mca.gov.mz), on dgMarket.com and on the United Nations Development Business website, as well as in other international and local journal and news outlets.
Press Release: Mozambique Trade and Investment Conference July 15-16, 2009 in Maputo
