A
60-member strong Mozambican business delegation visited
Dubai in November, 2000 to explore possibilities of increasing
bi-lateral trade and investment. Being the first delegation
of its kind, the event was described as a springboard
for business interaction between Mozambique and the United
Arab Emirates. The delegation was part of the official
participation of the country in Dubai’s International
Autumn Trade Fair held at the Dubai World Trade Centre.
Trade between Mozambique and Dubai stands in the region
of $13 million and has been registering a constant growth
in recent years. Air Mozambique (LAM) has played a significant
role in the growth of these figures. The airline commenced
flights to Dubai last year and has played an important
role in establishing a direct air link between Mozambique
and Dubai. As a result, an increasing number of business
people from Mozambique are beginning to discover the advantages
of doing business with Dubai. "Our interaction with
the Dubai public and private sectors, will also attract
businessmen from the UAE to explore investment opportunities
in Mozambique," said Cabo Delgado Jose Pacheco, governor
of the northern Mozambican province who was heading the
delegation.
The
Mozambique consulate in Dubai, which was opened in 2000,
also organised a special seminar on "Tourism and
Investment Opportunities in Mozambique," which was
attended by more than 100 businessmen from Mozambique
and the UAE.
The
seminar highlighted investment opportunities in Mozambique
especially in the tourism area, including environmental
and coastal tourism. The presentation was also attended
by Majed Al-Shamsi, deputy president of the Dubai Chamber
of Commerce and Industry (DCCI). "Significant increase
in bi-lateral trade, tourism and economic co-operation
between Dubai and Mozambique can be achieved through promotional
and marketing efforts carried out by agencies operating
in Dubai and Mozambique," he said. Trade, tourism
and business missions should be organised regularly, as
well as participation in international exhibitions and
trade fairs held in Dubai and Mozambique, he added. Crucial
to the success of co-operation would be the development
of more effective sea and air links between Mozambique
and the UAE, he stressed. "Boosting such effective
links will further enhance trade, tourism, and the quick
movement of people and goods between the two countries,"
he said.
"The
distance between our countries is becoming very small,"
he said, referring to the new Maputo-Dubai route flown
by Mozambican Airlines, LAM. Al-Shamsi encouraged the
Mozambicans to take advantage of the free zone facilities
that the government of Dubai provides. "We invite
businessmen from Mozambique to take advantage of the competitive
business environment of Dubai and establish warehousing
and distribution centres to supply the UAE, the Gulf region,
some parts of central Asia, and the Indian sub-continent
which comprises a region of 1.5 billion consumers,"
he said.
As
a direct result of the recent visit by the high-powered
delegation, Mozambique is now working to complete two
treaties with the UAE on dual tax avoidance and reciprocal
investment protection. "We are trying to set up a
joint commission between Mozambique and the UAE federal
government in a bid to increase our presence here, and
hope to open our embassy in Abu Dhabi next year,"
said Hipolito P.Z. Patricio, deputy minister for foreign
affairs and cooperation. Plans are also underway to set
up a Mozambique trade centre in Sharjah. Patricio said
Mozambique is considering getting expertise from Jebel
Ali Free Zone for its port at Beira. "We are impressed
with the efficiency and quality of operations here,"
he said.
Recognising
the favourable economic environment, a prominent Sharjah-based
business group has set up a food processing operation
in Mozambique, and is now diversifying into mango and
citrus plantations. The level of investment is about $5
million, but the group is also exploring opportunities
for a hotel.
Another
UAE group has also tied up with energy company Sasol.
"These are the pioneers from this part of the world
in our country, and we are hoping that more and more businessmen
based in the UAE will invest in viable projects in Mozambique,"
he said. Mozambique allows businessmen to buy property
and guarantees their rights, he said. "Businessmen
in Dubai, are known for their enterprise and acumen. We
invite investors to explore possibilities of setting up
businesses in Mozambique, which offers a conducive atmosphere
for enterprising businessmen," he said. "Investors
can also use Mozambique as a springboard to capture markets
in neighbouring countries," he said.
The
minister acknowledged his country is poor and needs basic
infrastructure development such as roads, bridges, ports
and telecommunications, affording investors opportunities
in these sectors and in agro-based industries and tourism.
“We have in recent years consistently recorded dual-digit
growth," he said. "GDP growth may slow this
year to 4-6 per cent due to extensive flood damage, but
2001-02 will likely see a return to growth rates of 10-12
per cent."
As
part of the rebuilding process, Mozambique is augmenting
infrastructure with a $1.3 billion aluminium smelter,
major hydro-electric projects aimed at generating 6,000
megawatts, and setting up an ambitious iron and steel
smelter. It is also linking up its national park with
those of South Africa, Zimbabwe and Swaziland through
a transfrontier border project aimed at highlighting its
tourism potential. "Tourism is expected to grow into
a multi-million dollar industry in Mozambique in coming
years," said Fernando Sumbana Junior, Minister of
Tourism, while speaking to Business Guide in Dubai. "We
are hoping to attract a large number of tourists from
the UAE and the Gulf region by promoting Mozambique's
tourist attractions through a series of seminars and presentations,"
he said.
Dubai's
leading English newspaper, Khaleej Times, recently published
a special supplement on Mozambique, highlighting the country's
major tourist and investment attractions. The introduction
of direct flights between Dubai and Maputo is sure to
result in a marked increase in tourist traffic between
the two countries.
Mozambique
And United Arab Emirates
MOZAMBIQUE
HAS HISTORICAL TIES WITH THE ARAB WORLD
The The United Arab Emirates and Mozambique enjoy a close
commercial and historical relationship. Recognising each
other's strengths, the two countries have moved quickly
to establish mutually beneficial ties, spanning not just
the areas of trade and commerce but also high level government-to-government
contacts that culminated in the visit of Mozambique President,
Joaquim Alberto Chissano last year.
Mozambique opened its consulate in Dubai in 2000 in a
bid to further strengthen these ties. This early show
of support by Mozambique has laid a solid foundation for
cooperation between the two sides in the new millennium.
According to Isaias Elisio Mondlane, Mozambiquen Consul-General
in Dubai, growing economic and trade ties underpin the
strong relationship between Mozambique and the United
Arab Emirates. The fact that these ties are growing exponentially,
is due to the support such activities receive from the
authorities in the two countries. The UAE is undoubtedly
the trading centre of the Middle East, just as Mozambique
is the gateway to the African hinterland. Both countries
are economically vibrant and have enterprising business
communities.
Overall
trade between the two countries stood at approximately
$15 million in 2000. "The UAE is Mozambique’s
second largest trade partner in the Gulf," said Isaias
Elisio Mondlane. According to Isaias Elisio Mondlane,
Mozambique is very keen to attract investments from the
UAE. The Mozambique Consulate will hold a series of investment
workshops in the UAE later this year with the aim of garnering
a larger share of UAE overseas investment.
"Many
UAE businessmen are looking at short-term investments
at the present moment and projects in tourism and infrastructural
development could be major attractions," he said.
Pointing out the various attractions of Mozambique as
a destination for foreign investment, he points out that
the country has a sound banking and distribution infrastructure.
It offers skilled labour, a well established legal system,
and a reasonable telecommunication network. With the large-scale
economic reforms now being carried out, the earning capacity
of large numbers of the country's population is expected
to go up in the coming years, leading to a burgeoning
market.
"We
have the raw materials - land, water and mineral resources
including some hydrocarbons which can be exploited. The
UAE can find great value in Mozambique not only in gas
and oil, but to transform our mineral resources,"
said Joaquim Alberto Chissano, the President of Mozambique
during a brief stopover in Dubai on his way to Malaysia
recently. Speaking about the steps being taken by the
Mozambique Consulate to facilitate trade and allow for
easy movement of business visitors and tourists to Mozambique,
the Consul-General said that the Mozambiquen Consulate
in Dubai has been organising presentations and seminars
on 'investment opportunities in Mozambique' in Dubai.
In
addition, the consulate has a special commercial section
to assist the growing bi-lateral trade between the two
countries.
Tourism is another area that has witnessed tremendous
growth over the past few years. Following the establishment
of direct air services between the two countries by LAM,
Mozambique's national airline, leisure-related travel
has gone up by leaps and bounds. "Our country offers
a huge variety of locations and activities to tourists
from the Gulf... from beautiful wildlife parks with a
huge variety of big game, to exciting holiday resorts...
we have attractions to suit all tourists," Isaias
Elisio Mondlane said.
Mozambique
is also a major participant at various exhibitions held
in the UAE. The country's governor of the northern Mozambican
province, Cabo Delgado Jose Pacheco, led a high-powered
Mozambiquen delegation to the International Autumn Trade
Fair in Dubai. Mozambique had also participated
in the Afro-Arab Trade Fair held in Sharjah where
the potential for ever greater trading and commercial
ties was explored through a series of seminars and workshops.
EVENT ANNOUNCEMENT
The Autoparts South Africa Exhibition is being held in Durban between 24-26 July, 2008 at the Durban Exhibition Centre, South Africa. The event will attract buyers, importers, distributors from all across Africa. Global suppliers of automobile parts and accessories can book a stall at theis premier exhibition.
