Business

Banking and Finance

You can buy up bank loans to agricultural projects in Mozambique. The banking sector in Mozambique was successfully privatized. And now there are about 10 private banks in the market. Besides private banks controlled by Portuguese banks, there is also a bank of Mauritius and ABSA and Nedbank of South Africa The interest rate for loans in U.S. dollars is 10 to 12%.

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Registration of Land

In Mozambique it is only possible to obtain grant of land. The land can be granted for a period of 50 years, renewable for equal period. A farmer must pay an annual grant to the Government. This rate depends on the province where the person wishes to explore the land and ranges from 1.5 to 3 U.S. $ per hectare and year. A foreigner can not directly request the granting of land - it must do so through a company registered in Mozambique. However, it can hold 100 percent of the shares in that company.

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Animals and market opportunities

CREATION OF ANIMALS
Due to the high rainfall particularly in the high plateau and along the lake, the Niassa is predestined for the production of forage. You can expect an output of 4 to 6 tons of dry matter per hectare. During the Portuguese colonial era farmers had large herds of livestock particularly in the high plateau.

Creation of animals and market opportunities

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Dried Friuts

Look at fruit juice.

Market opportunities
Dried fruit market is in Europe and Asian, where people traditionally like to eat dried fruits. Spoken to professional fruit growers, it is only profitable to sell for the fresh market overseas.

Contacts
John Kingman Walter, NGO TechnoServe, Av. Da Base N’tchinga Nº 509, Bairro do Coop, Maputo; 01 416 043; jake.walter@tvcabo.co.mz

Christian Welgemold, Institut for Tropical Fruits (ITSC), Nelspruit, 0027 13 753 70 96, entry number 0027 13 753 70 00, chris@itsc.agric.za

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Ombudsman

What is an Ombudsman?

The Ombudsman:
* is a service offered by Nakosso;
* is independent of Government and any political party;
* receives complaints from business people against government agencies or officials.

What does the Ombudsman do?
The Ombudsman can:
* provide information about what steps to take when dealing with a government department;
* receive inquiries and complaints about the practices and services provided by public agencies or government offices;

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FARMING

1. General information regarding farming in Mozambique

As you might know, Mozambique does not have the same problem with land issues as Zimbabwe. Only 10 per cent of the fertile land is currently used in Mozambique. It is the policy of the Mozambican Government to welcome foreign farmers.

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Commercial projects

1. Processing
Small-scale industrial processing for local markets (oil, soap, maize, etc.). Threshing, milling, pressing, cooking soap. Primarily in Lichinga because could use Neves’ infrastructure and because greater quantities of sunflowers. Proven market for sunflower oil.

  • Reduction of imports
  • Reduction of price
  • Stimulation of additional crop production
  • Creation or securing of employment
  • Low level of investment
  • Additional income from selling waste to poultry farm
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Credit facilities

According to NGO projects - because Niassa is under-developed in terms of infrastructure and industry, any business establishing itself in the province will have very high initial capital outlay. For example, the majority of the province is bush and so a farmer will need to clear his land before he can farm it. The cost of de-bushing is roughly equal to the cost of the land itself. The farmer must also invest in seeds, fertilizers and equipment and it will be at least one season before any of that capital expenditure can be recovered.

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Strategy for tourism

According to NGO projects Niassa has a lot to offer tourists: the safari and hunting opportunities in the Niassa Reserve and its buffer zones and also the beaches of the Lake. Whilst access problems and the need for responsible tourism mean that the Reserve must be aimed at a high value, low density market, there is the potential for other parts of Niassa to be open to a larger, lower value market. However, there is currently no coherent tourism strategy.

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Investments

Investments Incentives and Benefits
Are you planning on investing in Mozambique? Most of the investments are being made throughout the five Investment Corridors (Maputo, Beira, Nacala, Zambezi Valley and Tazara/Mtwara), in which rehabilitation and improvement of the infrastructure is planned.

Investment Incentives

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