Mozambique’s High Commissioner in the UK Carlos dos Santos outlines his country’s achievements since becoming an independent nation

This is a special year for all Mozambicans as the country celebrates 40 years of independence. It was on 25 June 1975 that the first President, Samora Machel, proclaimed Mozambique to be an independent and sovereign nation following centuries of Portuguese colonialism.

Forty years on, Mozambique is well placed on the stage of nations, at the regional, continental and international levels. The country has experienced a great number of developmental challenges and celebrates many achievements in the political, social and economic spheres.

The 2013 Global Peace Index placed Mozambique as the ninth most stable country in Africa. Mozambique also has good standing in the Mo Ibrahim Index. Fitch and Moody’s ratings give Mozambique a B+ (stable), which is a great achievement if one considers that only a few years ago the country did not have a rating at all.

Beginning at a basic starting point at independence, the Mozambique government has promoted and developed good political, economic and corporate governance. The country has made remarkable progress in deepening democracy, consolidating democratic institutions and practices, including Parliament, the Judiciary and the Executive. Human and institutional capacity has been the mainstay of governance.

Public services have been reformed and strengthened to instil a sense of duty and service as well as effective and efficient delivery of services to citizens. The expansion of these services to the whole country assumed great importance, for in colonial times they were available only to the few. The decentralisation process has allowed for greater devolution and greater involvement of the people in governance.

Mozambique is often called the meeting point of civilisations because of the diversity of its people, with a population of 24 million who speak 36 languages, originating from Africa, Asia, Europe and elsewhere. The first capital of the country, Ilha de Moçambique (Mozambique Island), was the port of call for Arabs and Europeans navigating the Indian Ocean many centuries ago. Today, the island is a UNESCO world heritage site attracting visitors from all over the world.

With a territory twice the size of the UK, Mozambique has a geostrategic location, which makes it a gateway for southern Africa. The country provides sea access for a number of countries in the region, including Zimbabwe, Swaziland, Zambia, Malawi, Botswanaand the Northern region of South Africa. The 2,700km coastline offers great opportunities for tourism, fisheries and conservation.

This ‘Pearl of the Indian Ocean,’ as Mozambicans like to call it is endowed with immense natural resources, which have established Mozambique on the map of domestic and international investors, placing the country in the top three destinations of foreign direct investment in Africa. It is one of the fastest growing economies in the world with average GDP increases of 7.5 per cent in the past decade.

Sound macro-economic policies and effective strategies have enabled the consolidation of the country’s economic foundations. The Guardian has recognised the progress of the country’s economy and considered the Mozambican currency, the metical, the most stable currency in Africa.  Furthermore, The Banker has recently elected the Governor of the Central Bank, Banco de Moçambique, Ernesto Gove, as Africa’s best central bank governor for 2015.

The recent rediscovery of huge offshore reserves of natural gas has the potential of transforming the country’s economy. 200 trillion cubic feet of natural gas has already been confirmed and the new blocks were launched for tender last October. The requisite investment will place Mozambique among the top three natural gas producers in the world. Top oil and gas companies, engineering, law and service corporations are going to Mozambique to invest directly or seek partnerships with local businesses. The banking sector has grown considerably and is securing financing for investment. The potential in the mining sector for solid minerals is equally huge.

One significant player in the country’s economy is the relatively new Mozambican Stock Exchange, which was established 13 years ago and is growing fast. The exchange market capitalisation evolved from half a billion US dollars in the second semester of 2011 to one billion in the second semester of 2012, with a growth rate of 87.94 per cent. This trend is continuing and the prospects are considerable.

Mozambique is home to the second largest hydroelectric dam in Africa, the Cabora Bassa Dam, which produces 2,075MW of power. This dam supplies power to Mozambique, South Africa and Zimbabwe. Moreover, US$6 billion investment in other dams will enable Mozambique to produce 12,500MW in Hydroelectric power with other investments in gas and thermal sources.

The landmass offers 33 million hectares of arable land, with micro-climates that are good for almost any crop in commercial and small-scale farming. The water-courses in Mozambique are well spread out in the different regions of the country, which lends optimal feasibility to agricultural projects.

Infrastructure development is another area of significant opportunity to support the economic growth of the country. The skyline of Maputo, Mozambique’s capital city, is changing everyday as new hotel and real estate developments take shape. This is also true in the other cities and regions of the country.

In 40 years of independence, Mozambique has made great strides in social development, particularly in the areas of health, education, the provision of drinking water and sanitation, as well as urban and rural development.

The role of women in society and gender balance has been mainstreamed in all development policies, strategies, plans and projects. Today, Mozambique is an example to the world in terms of the role of women in political, economic and corporate decision-making positions. Environment protection and preservation has also permeated government action.

Among the more daunting challenges that the country has faced has been developing appropriate actions to deal with the cyclical natural disasters that affect the country. Development in this area has resulted in fewer lives being lost whenever natural disasters strike due to early warning and awareness-raising campaigns in affected areas, including resettlement in safer areas. Other prevention strategies and rescue programmes have also been developed. Mozambique’s experience has been hailed and emulated by the UN and other international organisations.

In international affairs, Mozambique has promoted and expanded its relations with all nations of the world. The country has played a pivotal role in regional and continental political and economic integration and development.

Mozambique has also made important contributions in international organisations such as the Southern Africa Development Community, the African Union, the Commonwealth, the Non-Aligned Movement, the Group of 77 and the Community of Portuguese Speaking Countries among others.

The World Bank, the International Monetary Fund and the African Development Bank have been strong partners in the country’s economic development. The EU has equally been a strategic partner in development cooperation.

Development cooperation has grown from strength to  strength and bilateral partners include such diverse countries as the UK, China, the US, the Nordic Countries, Japan, South Africa, Italy, Germany, Portugal, Ireland, Tanzania, Zimbabwe, Angola, Mauritius, Algeria, Nigeria, Ghana, Cape Verde, Russia, Saudi Arabia, United Arab Emirates, Qatar, India, Brazil, Chile, Malaysia, Singapore, Jamaica and Trinidad and Tobago.

The UK has been a strategic partner over the years and has provided direct budget support and other forms of funding. Last year, our two countries decided to elevate the relationship to a higher level by launching the High Level Prosperity Partnership, which aims to build Mozambican human and institutional capacities and promote UK investment in Mozambique, as well as Mozambican investment in the UK. Led by ministers from both governments, the areas of focus for this initiative are agriculture, the extractive industries, financial services, business and education.

The space in this report cannot do justice to the achievements made by Mozambique as an independent and sovereign nation! The following articles are designed to highlight certain salient points in the country’s development process in the past 40 years.

www.mozambiquehighcommission.org.uk

THE LONG VIEW OF MOZAMBIQUE OVER 28 YEARS IN THE MAKING

Chairman of Africa Matters Baroness Chalker of Wallasey says Mozambique has every reason to be proud of its recent history

Mozambique has every reason to be proud of its recent history. The country is a multiparty democracy that recently successfully navigated national elections. Although these were not without issue, they still represent progress away from the past I first saw, and a commitment to the central tenets of democracy.

The new President, Felipe Nyusi, has a clear mandate to steer Mozambique through the coming years, towards further exploitation of its natural resource wealth and economic development. The National Gas Master Plan demonstrates the government’s commitment not only to responsible management of the revenues it will incur from its gas reserves, but also its strategy for driving industrialisation in the country.

This industrialisation will be underpinned, at least in part, by the allocation of 25 per cent of Mozambique’s gas to the domestic market.  This policy has seen major, and serious, companies such as Shell, ENI and Sasol sign MoUs with the Government to explore Mozambique’s gas-to-liquids (GTL) opportunity.  This can mean power for manufacturing, beneficiation of Mozambique’s other minerals, and also the development of a domestic fertiliser industry, amongst other things.   So the government knows that this gas can and must be used for the development of Mozambique’s economy as a whole. As President Nyusi said during the campaign: “we cannot eat gas.”

Development of the country’s gas reserves and the subsequent industrialisation will require huge inflows of Foreign Direct Investment (FDI).  Thus I was pleased to see that Mozambique improved 15 places in the latest rankings from the World Bank on  ease of doing business. These rankings have traditionally been used to berate the Government of Mozambique, and it has taken too long for the improvement to come. However, these things do take time and we are starting to see the results of a number of government programmes aimed at improving the country’s business environment. I expect this trend to continue now that the initial momentum has started to bear fruit.   Indeed, programmes I have been involved with through the ICF are directly contributing to this and we have found, in the Government of Mozambique, a reliable partner working with us towards a shared aim.

But beyond economic growth, the improved performance and the scale of the opportunity, why do we at Africa Matters Limited (AML) so enjoy working with Mozambique? Why do I return again and again with a spring in my step?  There is no simple answer to this, but there is something about the country that captures the imagination. An infectious belief in the promise of the future, fired in the forges of the past.  With all the Mozambicans have been through, I delight in their dauntless approach to what is yet to come. I have read too many briefing notes making cursory reference to President Nyusi being Mozambique’s first post-struggle leader.  Yet that fact is momentous. When one considers the fights fought by his predecessors, and what they have built.

My involvement in Mozambique began many years ago when times were very different: in the mid-eighties.   It was the tragic period immediately after the death of Samora Machel. I was there to represent the British Government at his funeral in November 1986. It was a time of deepest grief, and one knew that there would be continuing trouble for the people, as indeed followed.  I can never forget the sense of foreboding. But among the leaders I met, there was a determination to overcome the huge challenges, first of decades of neglect of basic services, and of the huge job ahead to give the people a chance to develop their country.

But the war continued, and we became rather more involved in helping the Foreign Office teams to bring some real help to President Chissano and his government in a huge variety of ways.   British engineers had helped to rebuild a crucial though short length of rail line outside Maputo.   The then Ambassador thought we should inspect it, so we did. Sadly some 10 days after that visit, the very length of rail line was blown up!

I did my best to assist Aldo Ajello, the EU negotiator, in the peace process over the tense years that followed.    In Foreign Affairs Councils of the EU, I found myself in frequent “exchanges” with the Portuguese Minister over better ways to end the fighting and terrible bloodshed that occurred. In Maputo I met a wide range of people and travelled by light aircraft to Gorongoza for a special meeting with Renamo.

Britain’s army training team in Zimbabwe, BMATT, played a major role for many in the Mozambican army alongside Zimbabweans at Nyanga just over the Zimbabwean border.   I was honoured to be present for the passing out parade of the first group there.   Once Mozambique had reached a measure of peace, other work in Maputo on the economy, in training of every type and basic infrastructure challenges began in earnest.   Then later came the question of Commonwealth membership, which came to fruition even faster.  As Minister for Overseas Development as well continuing as the de facto Minister for Africa, I was continually involved through to 1997, and ever since in my work to attract investment into Africa.

Since 2004 economic growth has averaged over 7 per cent. This is the legacy that has been left to President Nyusi, though he will continue to have the support of his colleagues in building upon the good work of the previous regimes. In the past five years Mozambique has received US$16 billion in FDI.  While much of this has gone into the natural resources sector, with each new inflow, Mozambique’s institutional capacity to deal with large investments increases.

This growing capacity is but one part of the positive narrative that we at AML are able to describe to the potential investors who ask us about Mozambique. We will also be asked about the legal framework; not just the letter of the law, but the spirit in which it is enforced. Here, again, my experience of Mozambique has been positive. An investor that behaves properly can be expected to be properly treated.    Yes, Mozambique has laws and regulations which may seem arduous to the new investor, but this does not mean they can be ignored.

This is a concern of which serious investors are perfectly aware, and it is serious investors whom I see looking towards Mozambique.  Where we had to work in the past to convince companies that this country was a safe investment destination, exemplified by Mozal, now we see the world’s most reputable oil companies expressing interest in the latest licensing round.

It is gratifying to see Mozambique hold such status amongst investors. I do not think their interest is misplaced. Nor, though, should anyone be unaware of the major challenges the country still faces. Infrastructure outside urban areas is still to be developed and Maputo can provide one with an inaccurate perception of the country as a whole.   There is major potential for agriculture, however the infrastructure for storage and export is too often lacking. The experience of the ProSAVANA project in northern Mozambique is instructive in that the will for development clearly exists, though the correct model has perhaps not yet been identified.

Nobody is more aware of these challenges than the Government of Mozambique. Given what has been achieved so far, one can expect progress to continue, rather than simply hoping for it.   As an Honorary Citizen of Mozambique, I am delighted to watch and, where appropriate, help with this great country’s development.

www.africamatters.com

MOZAMBIQUE MEANS BUSINESS

Director General of the Mozambique Investment Promotion Centre Lourenco Sambo says his country is riding a new emerging wave of growth

Mozambique has made marked progress in recent decades in terms of liberalisation of its economy and improvement of its investment framework. The country today has one of the highest rates of Africa’s non-oil economies, averaging 7.5 per cent since the turn of the millennium.

Mozambique investment policy framework has generally encouraged both domestic and international private investment, particularly in larger formal industries, and most effectively in the extractive industries. Mozambique’s government has already introduced legislation to create a business-enabling environment and sustain economic growth, namely a set of legislation on fiscal benefits the new mining and petroleum laws, among others. We also have deals with various countries about investment protection, so predictability is part of what makes Mozambique so attractive.

A promising hydrocarbons sector means that GDP is expected to expand 8 per cent annually through to 2018. Agriculture, fishery and tourism, however, remain Mozambique’s bedrock, providing jobs for most of the population. But other sectors, including mining (accounting for about 40 per cent of GDP in 2013), financial services, transport and communications, construction and commerce, are all growing fast.

With a wealth of natural resources, a young and motivated population of about 24 million, a strategic location for global trade, and 1,670 miles of coastline on the continent’s eastern seaboard, Mozambique serves as a gateway to southern Africa. Via its main three international ports and network of airports, it provides easy access to five landlocked nations.

Mozambique has more to offer than the rich natural resources that lie under its sea and soils. For example, agriculture alone can attract up US$6 billion in investment over the next few years, improving living standards for rural families that earn their livelihood from the land. There is also scope for growth in agribusiness, which can add value to harvests by processing the fruits and vegetables produced on farms.

After a long process of macroeconomic adjustment, with several reforms aimed at improving the business climate, Mozambique is reaping the first fruits of the influx of foreign capital. This is associated with the ongoing exploitation of natural resources, especially coal, as well as gas which is still in the research and evaluation stage.

As a result of the economic reforms undertaken by our government in consultation with the private sector, Mozambique is today a privileged destination of foreign direct investment from all over the world.

Over US$14 billion of private investment has been approved in Mozambique over the past three years with countries such as the UK, Portugal, United Arab Emirates, Mauritius, China, India, South Africa, Brazil, the US, and others, in the list of the top 10 investors in Mozambique.

Mozambique means business. We are open for the entire world to exploit the endless opportunities that the country possesses in agriculture and agro-industry, fisheries and aquaculture, tourism, transport and communications, and real estate, along with banking and insurance.

While all these sectors have enjoyed positive growth as a result of private investment, mining is seeing extraordinary developments with a potential to accelerate economic growth in the next five years to about 8 per cent.

Mozambique is already an exporter of coal from the Moatize in the central province of Tete, and natural gas from Temane, in the southern province of Inhambane, and the potential elsewhere in the country is still huge.

 For example, the discoveries of natural gas in the Rovuma Basin in northern Mozambique total more than 200 trillion cubic feet, putting the country in the important position of a natural gas supplier in the near future.

While we pride ourselves for discovering these natural resources, the task of their downstream utilisation remains a formidable one. We need investment in establishing LNG plants, power generation plants, fertiliser plants and so forth, so that the benefits can be far more effectively channeled to the local economy and our citizens in general.

The discoveries of these enormous quantities of natural gas bring a lot of challenges to the country, and the government is seeking to bring know-how and expertise to add value locally, thus improving standards of living for the population.

The area of infrastructure, which has been usually seen as the sole responsibility of the public sector, also presents tremendous opportunities in Mozambique, traditionally a leader in transport logistics, with the intensification of mining activities as well as the emergence of major industrial parks all over our national territory.

Last but not least, for these and other reasons, including the hospitality of our people, today Mozambique is a prime destination for large volumes of investment and, on this note, we would like to urge those who have not visited our country to come here as soon as possible.

For those seeking leisure, Mozambique is also a place of excellence. The tropical weather, cuisine and the hospitality of our people are some of the attractions that have made international visitors keep on coming back.

www.cpi.co.mz

YESTERDAY, TODAY & TOMORROW

Governor of the Banco de Moçambique Ernesto Gouveia Gove offers an outline of the role of Mozambique’s financial sector in the promotion of its national economy

Past: The First Republic, the post-independence period until 1990

After national independence in 1975, Mozambique’s financial systems were restructured in order to align it to the new economic paradigm established by the government, since the former system was comprised of institutions created to serve the interests of the colonial power.

At the institutional level, the restructuring process was characterised by banking and insurance integration, the Banco de Moçambique (BM) was created in 1975, which fulfilled the functions of a central bank as well as those of a commercial bank, and was a means for the government to conduct an independent financial policy and, in terms of commerce, serve as the vehicle for providing credit to the economy.

As a result of various reforms and economic policies that were adopted, the country experienced a considerable recovery of domestic production, although it remained below the levels observed in the period before national independence.

However, owing to the intensification of the armed conflict in the country and other factors including the deterioration of international exchange terms and natural disasters, the country witnessed the steady decline of its economy, resulting in the reduction of global production, an overall increase in prices, decline of exports revenues, drastic reduction of foreign reserves and increased dependence on foreign aid.

In order to address this situation, in 1984 Mozambique’s government joined the Bretton Woods Institutions, which culminated with the adoption of its first economic restructuring program (PRE) in 1987. The PRE implied, in practice, the definition of market-oriented policies for macroeconomic stabilisation, which were regarded as pertinent to correcting macroeconomic imbalances observed until then. For the financial sector, the PRE meant the liberalisation of credit, foreign exchange and interest rate policies.

Present: Second Republic

The adoption of the Constitution of the Republic in 1990 meant that the government no longer had an intervening role, but was involved in the promotion, coordination and supervision of economic activities.

Two models of economic organisation emerged at this time: the centrally planned and the market economy. Within the financial sector, this period was characterised by a number of legal reforms implemented by Mozambique’s government, aimed at enabling more private and foreign financial institutions to enter the sector.

As a result of a number of reforms, the financial system witnessed profound transformations, evolving from only three banks in 1991 to the current 18 commercial banks in 2014, with 541 branches serving all the provincial capital cities, municipalities and 66 rural districts, to which 10 micro-banks, 8 credit unions, 12 savings and lending organisations and 272 microcredit operators were added. The national payments system also grew, especially with the introduction of electronic clearing operations of interbank transfers, and the electronic transfer system of government funds aimed to complement government efforts to modernise its financial administration system, the entry of mobile banking, massive use of ATMs, POSs and other electronic banking resources, all of which have boosted the economy.

Financial sector contributions in this period consisted of investments in expansion and modernisation of financial institutions themselves, the creation of more jobs, and raising deposits and credit, important for the exploration of Mozambique’s potential assets, which include arable land, water, mineral and marine resources, as well as its geographic location, which offers the country privileged access to the markets of SADC countries. The table below shows GDP growth rates and the banking credit to the global private sector and per production sector.

The recent discovery and exploitation of non-renewable natural resources poses new challenges to the national financial system, namely financing companies to support the logistics of these megaprojects.

In summary, after the establishment of the market economy in 1990 and the end of the civil war in 1992, there was a more openness and modernisation of the national financial system and major diversification of financial institutions, products and services took place. The liberalisation of the banking and insurance sectors and the consequent ending of the government monopoly of the financial sector benefited the national economy. The channeling of credit to more productive sectors resulted in considerable efficiency savings. In turn, the increase of competitiveness deriving from the greater number of players boosted modernisation in the sector, seen in a rise in the number and quality of products offered. However, new challenges are added to the sector as a result of the exploitation of the country’s economic potential, as evidenced over the past ten years.

Future: A Developed Mozambique

The main challenge for Mozambique in the future is to adjust the financial sector in order to accompany the country on its way to integrated and harmonised development. Guidelines have been set out in the strategy for financial sector development in the next decade, approved by the government in 2012, which aims to “facilitate the development of a sound, diversified, competitive and inclusive financial sector that offers the public and enterprises, particularly small and medium enterprises, access to a wide range of adequate and high quality financial services at affordable prices.”

This strategy acknowledges the importance of human resources as the key factor in the country’s development and, as such, the need to empower people through the broadening of business opportunities and creation of self-employment.  Therefore, the financial sector should be able to generate equal opportunities to all Mozambican citizens regardless of their geographic location, contributing to the reduction of regional inequality. In this context, action to stimulate financial inclusion through the expansion of financial services to rural areas, and financial education will continue to be implemented.

At the end of 2014, Banco de Moçambique, in partnership with financial institutions and other public and private entities, launched an extensive financial education programme, called Savings National Day, aimed to raise citizens’ awareness of the need to make savings in order to enjoy a better standard of living in future. In addition, the Central Bank and some commercial banks have signed agreements to enable access to credit for small and medium enterprises, which will allow more inclusive growth and increased employment.

Furthermore, Mozambique is entering a new business cycle characterised by the exploration of mineral resources and, as a result, the country has become, in recent years, the second-largest destination of the FDI in Africa. However, the capital associated with these investments has been provided by foreign banks, which means we must expect that there will be a huge capital outflow for repayment of contracted debts in coming years. In order to increase the financial sector’s contribution to our economy, attracting international financial institutions to the country and strengthening the capital of banks operating in our market is a top priority, so that the financial sector can be in a position to mediate the  major investment projects taking place in the mining area. The arrival of new operators will also contribute to reducing the costs of financial intermediation through increased competitiveness in our sector.

The capital market can also help the process of rapid development in our economy. In this context, the strengthening of the role of the Bolsa de Valores de Moçambique, the country’s first stock exchange, in the process of raising resources to finance national enterprises, in conjunction with the banking financing, can largely contribute to accelerating the country’s economic activity. It is the government’s responsibility to strengthen its regulatory and supervisory role in the sectors where monopolies and oligopolies prevail, in particular in the financial sector.

Conclusion

It is obvious that the monetary and foreign exchange policies will continue to be key instruments in the coming years, taking into account that there is a need to pursue lower and sustainable inflation in order to lessen investments costs and protect borrowers. In addition, there is a need to ensure that exchange rates constitute a factor of the country’s external competitiveness in order to boost exports, playing and improving more and more the balance of current transactions, in a context of exploration of non-renewable natural resources where the challenges associated with the so-called ‘resource course’ will always be on the day’s agenda.

 www.bancomoc.mz

A COUNTRY OF CONTRASTS

From bush to beach, Director General of the Mozambique Tourism Authority (INATUR) Hiuane Abacar outlines a history of tourism in his country and the amazing experiences awaiting visitors today

When discussing tourism over the 40 years of independence in Mozambique, one comes to the inevitable question of how this country of contrasts came to be.

Let us start with 25 June 1975: Independence Day. Older generations were excited that our country was returning to the Mozambican people. Over the centuries Mozambique has played host to a large number of different people and cultures, including Europeans, Asians and Africans, creating an amazing history. Did tourism and tourists exist in Mozambique before Independence? Yes, mainly to Gorongosa National Park, Mozambique Island, Beira and Lourenço Marques (Maputo today). Mozambique’s prawns and the local ‘2M’ beer were well-known among foreign visitors, as were the emblematic Polana Hotel and Grande Hotel Beira. But during the colonial period, Mozambique was more of a source of agricultural and raw materials than a tourism destination.

As Mozambicans believed that tourism could play an important role in the future of the country, the Government established the Ministry of Industry, Trade and Tourism. In 1996, Mozambique adopted the strategic approach of taking part in international travel shows, and a couple of years later, concluded a master plan for coastal areas and started working on specific regulations for tourism and hospitality. The government held various seminars on the National Tourism Policy in the 10 provinces of the country. Mozambique also started to participate at World Travel Market in London in 1998, and in 1999 went to ITB in Berlin.

As Mozambique’s tourism potential grew, it became imperative to create a more focused regulatory and institutional framework, which resulted in the Ministry of Tourism, an entity responsible for promoting and developing tourism and conservation areas, while taking the lead on  generic marketing. Various laws were adopted: the Tourism Law, The Law on Conservation Areas, along with several decrees and regulations for travel agencies, tour operators, hotel accommodation, recreational activities, the Tourism Human Resource Development Strategy and the Tourism Marketing Strategy. These laws underlined the need for local community participation and highlighted the crucial role of foreign direct investment.

Mozambique began travelling the road to tourism success. Our unique selling point is our combination of bush and beach cultural tourism. The country has dedicated 25 per cent of its territory to conservation areas, including 18 national parks/reserves, and has 2,750km of coastline. Figures increased from around 200,000 international arrivals (not necessarily tourists) in 1990s, to 1.9 million international tourists in 2013, with US$236.2 in tourism revenue. Today Mozambique offers over 45,000 beds distributed among the lodges, resorts, hotels and guest houses, a great improvement on 5,000 beds in the 1970s.

Between 2010 and 2014, Mozambique attracted investment of US$1,397,523,443,00 from a total of 219 projects (source CPI). For the business community names such as Crussi-Jamali, Vilanculos and Bazaruto Archipelago, Inhassoro, Pemba, Quirimbas Archipelago, Vamizi (see page 48), Metangula, Lumbo-Sancul, Gorongoza National Park and Limpopo National are becoming more and more familiar.

The 40 years have witnessed infrastructure expansion with upgrades on roads, rail, airports and ports. Today, Londoners can reach Mozambique in 12 to 14 hours thanks to the newly inaugurated Nacala International Airport (also reducing travelling time to Mozambique from Europe by two hours.)

In 2015, Mozambicans are proud that their country is no longer a war zone, and is recognised as one of the most vibrant beach destinations in the world. Tourism contributes 5.6 per cent to the GDP and is one of the largest employers in the country.

Mozambique is continuing to build an environment conducive to investment, environment protection and preservation, and promoting eco and cultural tourism in order to offer visitors varied and high quality tourism options. The incentives and guaranties that we offer are some of the most attractive in the region and on the continent.

Pristine beaches, vast national parks and the welcoming people of Mozambique await your visit. If you wish to see lions, flamingos, elephants or dugongs and whale-sharks; if you wish to taste the best prawns from the warm waters of the Indian Ocean or our peri-peri chicken, book your holiday now! Mozambique has something to offer everyone, whether your pockets are big or small.

www.inatur.org.mz