Special Economic Zones identified in Mozambique

The Mozambican government has identified 24 “development hubs” where Special Economic Zones for agro-business can be established, according to Agriculture Minister Jose Pacheco.

The Special Zones will promote investment in key sectors to raise agricultural production. The establishment of these zones is being coordinated with the Ministry of Economy and Finance as investors could be offered tax exemptions.

The 24 Special Zones are located along Mozambique’s six agricultural development corridors. These are the Maputo and Limpopo corridors in the south, the Beira and Zambezi Valley corridors in the centre, and the Nacala and Pemba-Lichinga corridors in the north of the country.

Opportunities in the six corridors have been identified for the value chain of products such as potatoes, wheat, beans, maize, soya, rice, poultry, cattle, and forestry products.

Several Special Economic Zones already exist – but these are mostly for industries and tourism. The best known is the Beluluane Industrial Park on the outskirts of Maputo, where the MOZAL aluminium smelter is located.

In addition to the Special Zones, Pacheco said his Ministry is negotiating with the Tax Authority (AT) to exempt from customs duties and value added tax (VAT) the import of spare parts for agricultural equipment. This includes tractor tyres and irrigation tubing, which will fall substantially in price, if the AT accepts the Ministry’s proposal.

SOURCE: AIM http://www.poptel.org.uk/mozambique-news/