Investment opportunities in agribusiness in Mozambique

Transcription

1 Investment opportunities in agribusiness in Mozambique

2 Winresources is positioned as a strategic partner of economic agents in the countryside, in the definition of investment strategies, "Search for Money", and technical and administrative monitoring of investment projects. We also support our customers in implementing their projects, conducting studies to characterize the operationalization of specific actions of their investments.

3 Sectors of activity: SMEs Agricultural Sector and Agro-Industrial Forest sector Wood and Furniture Industries Energy, Environment and Biomass Sanitation and Recycling Rural Tourism and Nature

4 Our Values: Take advantage of the synergies that enhance the business Encourage strategic partnerships to foster growth set Further train employees and partners to the achievement of excellence in service Foster sustained profit at the expense of short-term profit Manage each natural resource and human as the most important Strive daily to promote the growth of our clients

5 Our Services in Mozambique: Business Plans; Exploration plans; Technical Support in the Design and Implementation of Investment; Applications for Funding; Training and Technical Assistance (Agricultural and Management); Sectoral Studies; Marketing Plans; Support and Project Implementation; Administrative monitoring of projects;

6 Some of our projects in Mozambique Training and Development of Business Plans for pre-cooperatives; Preparation of Agro-Youth program in partnership with ANJE; Support the marketing strategy of a company's marketing of food and nutritional supplements; Assistance in developing investment and "search for money" for a company of fertilizers and agro-chemicals; Preparation of Business Plans for a set of agricultural and agroindustrial; Preparation of market studies for a range of agricultural and agroindustrial international;

7 Section 1 - Mozambique in a Glance Mozambique is a stable country, with high economic growth and substantial agricul- Demography: Population: 23.9 million Capital: Maputo National Language: Portuguese Business Languages : Portuguese & English land and climate: Arable land: 36 million acres Climate: Tropical Sub-Tropical Main economic indicators (2011) Currency: Metical Abbreviation: MZN GDP (Current USD): USD billion GDP Per Capita (Current USD): USD 535 Projected Annual Growth of GDP: nearly 8% per year until 2015 Agricultural contribution to GDP: 24% tural potential

8 USD B A Growth Economy Mozambique is one of the fastest growing countries in the world and has ideal conditions for growing a wide range of agricultural products Of the 36 million hectares of arable land, only 15% is being used. It has the potential to produce high-yielding crops throughout the year, due to its tropical climate. The main rivers offer great potential for irrigation (such as the Zambezi, Save and Limpopo). Economy expected to grow at 8% per annum in the medium term, supported by the increase in FDI and domestic production. Suitable for rainfed agriculture Large Areas of Land Eligible

9 Strategic Location for Trade Euroupe / Mediterranic Country Neighbors of SADC Middle East Asia Natural gateway to Europe and the Mediterranean, South Asia and the Middle East. It borders with regional markets such as South Africa, Zimbabwe and Malawi. Significant improvements in the port of Nacala and Beira will increase trade opportunities.

10 Government Support Agricultural transformation is a priority within the highest levels of Government and to investors are offered attractive incentives and support FOCUS ON AGRICULTURE - President Guebuza is a co-founder of the initiative GrowAfrica. - Agricultural growth is a priority of the Government due to the impact on: - Generation of employment and income. - Food security. - The Government approved (PEDSA) with a time horizon of 10 years that focuses on the implementation in six growth corridors. INCENTIVES TO INVESTMENT - Exemptions on import duties on equipment. - Reduction in the corporate income tax: - Low cost of the land: - 50 (+50) leasing of land for ~ $ 1.1/ha/year INSTITUTIONAL SUPPORT - Agencies dedicated to facilitate investment: - The Center for Investment Promotion (CPI) and the Center for Agricultural Promotion (CEPAGRI) promote and support agricultural investment opportunities. - GAZEDA dedicates to Nacala Economic Zone - And other institutions sectoral promotion

11 Corridors of Agrarian Development The Strategic Plan for the Development of the Agricultural Sector in Mozambique (PEDSA) identifies six potential growth corridors to attract investment - Maputo, Limpopo Lichinga-Pemba, Nacala, Beira and Zambezi. Nacala, Beira and Zambezi, situated in the central and northern Mozambique. They have 80% of water and has facilitated access to export-oriented infrastructure. Attractiveness of Nacala: Nacala Special Economic Zone, with facilities and tax benefits Upgrade of the largest and deepest port in eastern African coast in Nacala The mining sector is a growing demand for agricultural products currently imported from South Africa at a high cost Attractiveness of Zambeze: 80% of the country's water reserves are found in the Zambezi Valley Diversity of soils and climate perfect for a variety of cultures The mining sector is a growing demand for agricultural products currently imported from South Africa at a high cost Attractiveness of Beira: Infrastructure such as roads and railways linking Zambia, Malawi, Zimbabwe to the port of Beira, well developed A number of mining investments billions of dollars are increasing, which will improve access to infrastructure in the region and increase local demand

12 Section 2- Investment opportunities From the various opportunities in the country, we can highlight the investment potential and the current market situation (12 strategic crops) Rice Soy Banana aviculture Investment opportunities Sugarcane Cassava Cotton Fruits and vegetables Corn Cashew nut livestock Forest

13 Rice Rice consumption has doubled in the last decade, but without reducing the level of imports. Increase in population and income growth will drive future demand. Growth potential There is a big gap between domestic production and demand - Mozambique is the third largest consumer of rice in SADC, and imports around 60% of the rice consumed Despite the significant growth potential for rice (very well adapted to the climate and soil for rice production in the year), domestic production has only grown at the same rate as imports Domestic demand is projected to increase by 7% per year in the medium term. Significant investment is ongoing, which can dramatically improve the existing infrastructure and increase rice production. There are business opportunities in various parts of the value chain, as well as an integrated producer.

14 Soy Soy is a considerable cost to the poultry industry and could be a key factor in replacing domestic production of chicken meat imported. Opportunity to increase oil processing with production. Increasing importance. The demand for soybeans is increasing due to the development of the sectors of oil and poultry - Poultry is projected to expand by 13% per year for the next decade. The Government is actively encouraging the growth of domestic soybean industry to replace imports, which is a critical component and costly poultry feed. Soybean imports at high prices are pushing up the prices of domestic chicken, making it difficult to compete with imported chicken. The main component of the cost of poultry feed is (~ 74%). Local production of soy can reduce costs, improve the competitiveness of the poultry industry.

15 Aviculture Expected to growth above 12% per year Demand for chicken has grown significantly across Africa. Chicken consumption has doubled in African countries over the last decade, with high dependence on imports from Brazil, Asia and the USA. Opportunity for producers to meet this demand, due to geographical advantages. While currently the domestic demand in Mozambique has increased slightly each year, future demand is expected to triple over the next 10 years, with consumption increasing from 42,000 t in 2010 to 137,000 t in Impact of considerable growth in mining and the oil and gas sectors in the labor force will help boost domestic demand.

16 Banana The banana industry in Mozambique is situated to benefit both its geographical position as well as the cost advantage of production and transport Competitive advantage of Mozambique Ability to feed demand imbalances in the Middle East, the Mediterranean, and to a lesser extent Southern Africa. Demand imbalances have increased at different rates in these regions over the past few years, with further growth in Europe, where African countries receive a competitive export tariff against Latin America (about $ 3 per box). Production during the year and high performance culture within Mozambique offers additional export opportunities and good margins. Potential for operating costs lower than other competitors.

17 Sugar cane Sugar cane has become a success story for having benefited from recent investment, but still lacks increased production and export Exportation Potential with Advantages Taxes Domestic production has almost doubled in the last five years and are expected to continue to grow both in productivity and area: Ideal climatic conditions and land available high quality benefit the expansion of the sector. Training of local farmers has improved the quality of sugar cane harvested, which led to increased yields of sugar per ton. Trade agreements in the EU and SACU permit export with favorable financial conditions Significant focus on cane sugar has created an environment conducive to success: Action Plan: This partnership with the EU has invested more than $ 13 million in technology transfer for sugar producers. Rehabilitation: Released after the Civil War, this plan has recovered drainage systems and infrastructure used by the sugar industry.

18 Cassava New processing technologies expands market opportunities for cassava, the most consumed crop in Mozambique Opportunities Cassava has and will continue to have a strong demand relative to other staple crops. Product substitution opportunities exist for cassava, given the cost advantages in relation to other cultures: Cost for cassava is about half of some related cultures. Example: 25% wheat used in bread can be substituted for tapioca, 55% of the cost. Significant market opportunities created by the new technology and a mobile processing unit created by DADTCO: multiple uses of cassava in animal feed, industrial raw materials, beer, alcohol and bioethanol. Example: SABMiller will invest additional $ 124 million over the next two years to continue to develop their cassava beer (Impala).

19 Cotton The cotton sector has been a historically strong due to excellent agro-ecological conditions and potential for export Traditional culture payment cotton has a long history in access to important international markets, traditionally in Europe and recently in Asia. In 2011, $ 30 million of cotton fiber was produced. Most of the production occurs in the north of the country, in the provinces of Nampula and Cabo Delgado. The increase in international prices increased the profitability of cotton production due to the high potential for increased levels of productivity High value-added processing Opportunities for ginning cotton for the export of high quality cotton and cotton seed processing for oil. Other opportunities exist in industrial processes which require the use of cotton as a raw material (textile, etc.)..

20 Vegetables and Fruits As a tropical country, Mozambique has high production potential of a great number of fruits and vegetables, as pineapple and sleeve. exportation potential Improvement of the Domestic Markets Favorable agro-ecological conditions and production potential of all the year take a comparative advantage in certain fruits, creating enormous chances of investment. Against-seasonality, the demand of the Average East, the Asian markets - ideal for the exportation. The demand exists for products of added value, such as dry fruits, jellies and the highest point can be produced from fruits without taking care of classrooms of quality exportation. The recent entrance of significant purchasers of supermarkets, as Shoprite and Massmart/Walmart. Great markets in Maputo and South Africa for vegetables, as tomatoes, onion and green chili. For example, production potential, in the regimen of Chokwe irrigation (South of the Country) to supply these markets.

21 Corn Domestic and regional markets are sources of great increasing e demand this important alimentary culture. Mozambique is able to take advantage of this Potential Barn Through Higher Yields Maize is the more important alimentary culture in Moçambique and a basic food in all of Austral Africa. 1,9 million tons of maize were produced in 2010/11, but the productivity levels are still very low. Most of the production is carried through in the provinces of the Zambézia, Manica and Niassa - in the center and north of the country. Moçambique can become a regional granary, with productivity increases. High potential of productivity increase and production, especially in the north of the Valley of the Zambeze. The investment chances exist in the set of products processed from plantations the also large-scale maize and.

22 Cashew Before the civil war, Mozambique was the largest producer and exporter of processed cashew nuts in the world. Reconstruction of the Industry opportunities The significant effort of givers and the government has been invested in the improvement of the conditions of market for the producers, processors and exporters who operate in the sector of the cashew. Demand in the international market is increasing in such a way in value and amount, providing excellent chances of exportation for the investment in a long ago prosperous industry. Cashew exportations are currently the third greater agricultural exportation of Mozambique in value. The majority of the exportations of the cashew chestnut is in rude, offering chances for investment in cashew processing for exportation market. The majority of the production and processing exists in the province of Nampula, that presents ideals agro-ecological conditions for the chestnut production

23 Livestock The measure that Mozambique grows, exists expectations of an increase in the consumption of the meat The Increasing Incomes Create New Markets The increasing middle class places a bigger demand for quality meat products in Mozambique.O mercado tem estado crescendo consistentemente, especialmente em Maputo e nas áreas turísticas. The market has been growing consistently, especially in Maputo and the tourist areas. Currently the high importations of bovine meat, mainly of the South Africa, create a chance for the substitution of importation. Potential of swine production, cattle and goat for the local consumption, with significant chances of exportation for the meat of goat in the Middle East. The wealth grows through the operations of mining in the north of the country, becoming in a market that is being filled for the expensive importations.

24 Forests Significant chances are created through a sector in expansion, stimulated for the increasing internal and external search Sustainable Wood Needed Globally The global demand for wood products can be an opportunity for Mozambique, due to its global strategical localization, particularly with the wooden deficit commerce in Asia. 26 million potentially appropriate hectares for the forestry, of which the 3 7 million hectares with potential to be developed in commercial plantations. Forest concessions can be gotten to a very low cost ($0,10/ha/year). The commercial forestry sector is currently in development target of large investments Great commercial plantations already are being developed in the regions north and center. 3 ports with higher capacity are being equipped to facilitate exports

25 M: davide.freitas@winresources.pt geral@winresources.pt THANK YOU!