Investing in Mozambique
“Tourism stands as a vital pillar to Mozambique’s economy. Considering the years 2016 to 2019, the tourist destination welcomed on average 2 million tourists per year and tourism accounted for a share of 4.5% and 32% to the country’s GDP and export of services respectively. On the other hand, the tourism sector was the third largest recipient of approved investments from 2018 to 2022, receiving 11% of total investments.”
Executive Director, UN Tourism
The investment guidelines "Tourism Doing Business, Investing in Mozambique” is a comprehensive report that highlights the main economic, political, and social strengths of the Republic of Mozambique, among which we can find its diverse landscapes, nature, and its attractive cultural and gastronomic richness. All together they make the country a unique place to invest in tourism in the south-eastern region of Africa.
The report highlights the economic development and performance of Mozambique. Since the turn of the century, the country has exhibited an impressive narrative of development, demonstrating its resilience, flexibility, and determination to recover from challenges. The International Monetary Fund (IMF) and World Bank show confidence in the country’s growth by projecting GDP growth for 2023 between 6% and 7%. Tourism is a sector of great importance to the country’s economy, as it accounts for 3.71% of the overall GDP between 2016 and 2020 inclusive.
These investment guidelines explore the investment panorama of the country, highlighting the efforts made by the government to revamp its investment framework and secure its position as an attractive destination for foreign direct investment (FDI). The so-called Economic Acceleration Stimulus Package (Pacote de Medidas de Aceleração Econômica – PAE) stands out as an initiative that aims to enhance Mozambique’s business environment, transparency, and governance. The country also enacted a new Private
Investment Law to stimulate investments by offering tax benefits, access to land, simplified licensing, and protection against expropriation.
The report further analyses the share of approved investments by sectors of activity, with energy, industry, and tourism accounting for 41%, 19%, and 11%, respectively. The accumulated number of approved investments in Mozambique's tourism sector reached USD 1.1 billion between 2018 and 2022 inclusive.
Mozambique possesses an advantageous geographic location, which has evolved into a transportation hub, providing essential sea access to landlocked neighbouring countries, as well as connecting railways and roads to the main ports (Maputo and Beira). It is also known for its natural beauty and rich cultural heritage is unique, with various natural assets being recognized by international awards. Indeed, the country has one of the most impressive coastlines on the Indian Ocean and 25% of the country’s land is under conservation and home to more than 9,000 species of flora and fauna.
Moreover, the country has developed a series of taxes and incentives to investors, including special regimes for companies operating in Special Economic Zones (SEZ) and Industrial Free-Trade Zones (IFTZ). The PAE stands out with its 20 measures categorized across both fiscal and business environment incentives. A ray of incentives related to customs and taxes, accompanied by incentive schemes aiming to promote investment in conservation areas are specifically relevant for investments in the tourism sector.
Finally, this report analyses the competitive positioning of the country in the region based on several indicators. Mozambique has demonstrated a better-than-average ease of doing business rank among African countries and on the Travel and Tourism Development Index (TTDI) Mozambique ranked 127th of 140 globally and above the median considering only African countries. On the TTDI Mozambique performs best in price competitiveness and international openness.