Mozambique has made big strides in the past decade, becoming a magnet for foreign investment, and an exporter of electricity. The country is now poised to be a source of energy and food to the world. Factors that have attracted investors to the southern African country include stability, availability of land, abundant sources of electricity and access to a large regional and international market.
Fisheries and aquaculture sector
The fisheries and aquaculture sector has been developing with both local and foreign companies making significant investments. Prawns and other sea products such as shrimps have done exceptionally well in European and Asian markets. The country has enormous potential all along its 2,700 km Indian Ocean coast line, combined with excellent natural conditions favourable for aquaculture, though still at its infancy.
The government is however placing top priority to the development of aquaculture, especially shrimp aqua-culture.
The sector contributes 3% to the Gross Domestic Product, with production estimated at 88,000 tonnes in 2007. The prawn industries leads in terms of exported value of fish.
Lake Niassa, Cahora Bassa reservoir and Massingir dam are major water bodies supporting the industry, while smaller water bodies are largely exploited by artisanal fishing.
Apart from Cahora Bassa reservoir where semi-industrial fisheries for sardines have been developed, no significant development has been achieved in other inland waters. Inland fisheries in Mozambique therefore have potential which has not been fully exploited.
“Very little investment has occurred to take advantage of opportunities in post harvest operations, yet the profits made in these niche are significant.”says Herminio Tembe, Director of Economy
in the ministry of fisheries.
Short-term investment opportunities
Short-term opportunities exist in developing and modernizing post-harvest operations such as fresh fish handling, processing, refrigeration and storage, transport, distribution and packaging.
The absence of these facilities in almost all landing sites contribute to harvest losses of more than 50%.
“We are encouraging investors to take advantage of these bankable opportunities that can contribute towards the formalization of trade in processed fish, and also lead to a greater trade in fresh fish, to develop inland fisheries in the country.” adds Tembe
Investing in short-term opportunities will open more opportunities in boat and outboard engine repair businesses.
Long term opportunities
• Development of a mechanized fishery for offshore pelagic
species, targeting tilapia and the lake sardine, Engraulycipres sardella, locally known as “Usipa’, using mid-water trawling.
• Development of small-scale mechanized fisheries for offshore species targeting the high-value species Rhamphochromis ssp. Using longline or gill nets would be most suitable for this activity
• Development of small scale mechanized fishery to target shallow water cichlids.
• Other opportunities exist in ornamental fish, marine fisheries, offshore octopus, tuna, line fisheries. Also in long line shark fishery, deep water shrimp and crayfish, mudcrab fishery and sport fishery.
Specific incentives:
• Exemption from payment of customs duties and VAT on the import of equipment classified as class “K” in the Customs Tariff Schedule including the accompanying spare and accessory parts.
• 80% reduction in the corporate tax rate
until 31 December 2025
• Cost of professional training deducted from taxable income
For other sector specific incentives and information on fisheries and aquaculture contact the Investment Promotion Centre .
Key contact: Mussa Usman
Deputy director, CPI
Email: musman@cpi.co.mz
