Further to GAR’s article on Mozambique’s potential in the market for liquefied natural gas (LNG), here are five other sectors being eyed by investors:
Mozambique is the 35th largest country in the world, and while 45% of the country’s territory is comprised of arable land (according to the National Institute of Statistics of Mozambique), only 10% of this is currently utilised. Mozambique’s geographical position also ideally places the country for trading with both the Middle East and Asian markets.
However, Mozambican domestic production currently fails to meet current local needs. The Ministry of Agriculture has responded by creating a National Plan for Investment in the Agricultural Sector to pursue self-sufficient in food. The plan lays out a transformation from subsistence to commercial agriculture, and uses the domestic sugar industry as a model.
Logistic & Warehousing
Mozambique’s recent energy boom in the coal and natural gas sectors is complemented by an equally rapid programme of infrastructure construction, and yet the demand is such that present transport and logistics limitations remain the biggest challenges in the country.
Products can sits idle for days, and with the added problems of electricity shortages and high fuel prices, the need for a rethink is apparent. In a country where foreign companies have been forced to build dedicated shipping lines due to lack of capacity, the potential gain for investors is great.
Heavy Industry & Construction
As a consequence of Mozambique energy growth and lack of infrastructure, the need for industrial products and services is of paramount importance. There already is and will increasingly be a large requirement for roads, buildings, construction materials, transport facilities and expertise. Investments in this area will not only allow for easier business dealings, but additionally open up the country to further expansion and faster growth.
As with all the requirements that come with a growing economy, real estate is fast becoming a commodity. At present, Mozambique lacks a host of real estate staples, including housing, shopping malls, restaurants and warehousing. Foreign investors are swiftly moving in on the market and both the quality and prices are rising quickly, but there isn’t an end in sight yet.
There are currently few hotels choices in Mozambique, and of those choices many are perceived to be too expensive with little value for money. However, the growth of business tourism has sparked an arms race between hospitality providers to deliver cheaper options and consistently better standards. From the GCC, Dubai’s Rani Investments has notably announced five projects in just twelve months, all in partnership with the Minor Hotel Group.