Is Mozambique the Next Hottest Destination for Tourism, Business, and Investment?

Is Mozambique Poised to Become a Premier Tourism, Business, and Investment Destination?
Mozambique, a country in southeastern Africa, is increasingly garnering attention as a hotspot for tourism, business, and investment. With a growing number of tourists flocking to its diverse landscapes, rich cultural heritage, and gastronomic delights, Mozambique offers a unique and enticing proposition for those seeking new opportunities in the region.
Economic Outlook
Despite its fair share of challenges, Mozambique has demonstrated impressive economic development and resilience in recent years. According to the International Monetary Fund (IMF) and World Bank projections, the country is expected to experience a GDP growth rate of 6% to 7% by 2023. Notably, tourism contributes significantly to Mozambique’s economy, accounting for 3.71% of its overall GDP between 2016 and 2020.
FDI Performance
Mozambique has also taken significant steps to attract foreign direct investment (FDI) through improved investment frameworks and policies. The government’s Economic Acceleration Stimulus Package (PAE) aims to enhance the country’s business environment, transparency, and governance. Additionally, a new Private Investment Law provides tax benefits, simplified licensing, and protection against expropriation for potential investors.
The tourism sector has particularly benefitted from these initiatives, with approved investments totaling USD 1.1 billion between 2018 and 2022. Energy, industry, and tourism account for the majority of approved investments in Mozambique, at 41%, 19%, and 11% respectively.
Value Proposition
Mozambique’s geographic location plays a pivotal role in its appeal as a destination for tourism, business, and investment. As a transportation hub, it provides vital sea access to neighboring landlocked countries and boasts well-connected railways and roads leading to major ports. Furthermore, the country’s natural beauty and rich cultural heritage have received international recognition, with impressive coastlines along the Indian Ocean and 25% of the land dedicated to conservation and home to over 9,000 species of flora and fauna.
Investment Incentives
In an effort to attract more investment, Mozambique has implemented various tax regimes and incentives. Special Economic Zones (SEZ) and Industrial Free-Trade Zones (IFTZ) offer specific regimes for companies operating within these areas. The PAE includes 20 measures encompassing both fiscal and business environment incentives. Notably, incentives related to customs and taxes, as well as those promoting investments in conservation areas, are particularly relevant for the tourism sector.
Competitive Outlook
Mozambique’s competitive positioning in the region is impressive, with favorable rankings in key indicators. The ease of doing business in Mozambique surpasses that of many African countries, and the country’s performance in the Travel and Tourism Development Index (TTDI) places it above the median for African nations, ranking 127th globally out of 140 countries. Notably, Mozambique demonstrates strength in price competitiveness and international openness.
In conclusion, Mozambique is emerging as an attractive destination for tourism, business, and investment. Its robust economic growth, improved investment frameworks, and incentives are drawing the attention of both domestic and international investors. With its natural beauty, rich cultural heritage, and strategic location, Mozambique presents abundant opportunities for those seeking to tap into its untapped potential.

Voir cette publication sur Instagram