Reason Why Set Up Your Business in Mozambique
Mozambique is a country located in Southeast Africa and has a population of 29 million people who mostly speak Portuguese. It is abundant in natural resources. These resources are graphite, iron, titanium, and more, while also holding some of the world’s largest untapped coal deposits. It is a great start to set up business in Mozambique because of the high-value resources in the country.
The discovery of various gas reserves in the Rovuma basin over the last decade also means that Mozambique may become one of the largest producers of liquefied natural gas in the world once gas production systems have been fully developed.
Business Potential to Set Up Business in Mozambique
Mozambique’s energy sector holds great potential and has yet to be fully explored. Some countries recognize it such as Brazil, China, Australia, America, Italy, and others. They albeit to fully develop this potential will take some time due to Mozambique’s still-developing economy. Other sectors that are noteworthy include mining, precious metals, tourism, renewable energy, and manufacturing
Mozambique’s annual GDP growth rate averaged 7% over the past decade. Much of its economic development has been led by FDI and this continues to increase. In 2015, there were 42 impact investments deals, the third-highest number of deals in the Southern Africa region. Mozambique benefits from being one of the five trading partners with South Africa, which is the regional economic hub of Africa and continues to be one of the fastest-growing economies in the continent.
Unilateral methods also mean there is no double taxation that resident companies need to deal with. Furthermore, the country’s population is expanding quickly, and an estimated half a million young people will enter the labour market every year for the next decade, hence guaranteeing a large demand for business opportunities as well as for goods and services
While various challenges remain in the form of bureaucracy and infrastructure, setting up a business in Mozambique will likely pay off in the future. It is set to be one of the world’s next great energy superpower – it is only a matter of when.
If you are interested in doing business in Mozambique, 3E Accounting is the right choice for you. Our global connections include a partner firm in Mozambique that ensure we have the necessary know-how and up-to-date information to ensure your success.
Contact us today at 3E Accounting and get quick and thorough results from our effective and high-quality work.