Online Reporter
Vusumuzi Dube, Deputy Radar Editor
MOZAMBICAN President Daniel Francisco Chapo has made a strong call for deeper economic cooperation between his country and Zimbabwe, highlighting sweeping reforms aimed at boosting foreign direct investment and strengthening trade relations.
Speaking during the official opening of the Zimbabwe International Trade Fair (ZITF) in Bulawayo last Friday, President Chapo said there are a series of investment opportunities and trade incentives his Government has rolled out to create a more attractive business environment.
He noted that Mozambique’s membership in key regional and international trade frameworks such as the African Continental Free Trade Area (AfCFTA), the Southern African Development Community (SADC) and preferential trade agreements with the United States (AGOA), Europe and parts of Asia gives investors access to vast markets across the globe.
President Chapo said being part of these organisations allows Mozambique access to an expansive market in the region, on the continent and globally.
Turning to bilateral trade, President Chapo said between 2020 and 2024, Mozambique exported goods worth US$804 million to Zimbabwe, while imports from Zimbabwe amounted to US$134,9 million.
Despite a four percent decrease in Mozambique’s exports and a 66 percent surge in imports during the period, Zimbabwe remains an important trading partner, ranking 15th among Mozambique’s export destinations in 2024.
Key Mozambican exports to Zimbabwe included electricity, fertilisers, rice, palm oil, aluminium wires and petroleum products.
“Zimbabwe’s strategic positioning in the list of Mozambique’s trading partners in 2024 was 15th place, corresponding to one percent of exports. The main products exported to Zimbabwe were electricity, mineral or chemical fertilisers, nitrogen, mixed mineral or chemical fertilisers, cooked or stuffed pasta, other tubes and hollow profiles, aluminium wires, mineral or chemical fertilisers, potash, petroleum oils or oils from bituminous minerals, rice, palm oil and its fractions,” said President Chapo.
Conversely, Zimbabwe’s exports to Mozambique, mainly unmanufactured tobacco and flour, positioned it 37th among Mozambique’s import sources, representing only 0,3 percent of total imports.
“Foreign direct investment projects with Zimbabwean capital, most of which are in the full implementation phase of their activities, have benefited from the guarantees, facilities and tax and non-tax incentives granted by the investment legislation in force in our country, which has dictated their success,” said President Chapo.
The Mozambican leader urged Zimbabwean businesses to take advantage of Mozambique’s ongoing reforms, especially in the agriculture sector, where regions like the Zambezi Valley, stretching across Tete, Manica, Sofala and Zambezia provinces, offer fertile opportunities close to the Zimbabwean border.
“In terms of investment opportunities in the agriculture sector and its value chains, our country offers competitive advantages, particularly in regions with excellent agro-climatic conditions for agriculture, located near or close to the border with Zimbabwe, namely the Zambezi Valley, which covers the entire province of Tete and parts of the provinces of Manica, Sofala and Zambezi, as well as the areas along the Beira Corridor,” he said.
President Chapo said Mozambique has competitive advantages in agriculture, urging Zimbabwean investors to explore these opportunities.
To facilitate investment, Mozambique has implemented major reforms, including the adoption of a new Private Investment Law aligned with international best practices.
This law guarantees equal treatment for both domestic and foreign investors and streamlines the approval processes for new projects.
He emphasised his administration’s commitment to creating an equitable environment for both national and foreign investors.
“Among the various reforms introduced by the government, there is the approval and entry into force of the new Private Investment Law and respective regulation, based on the best international practices for promoting and attracting investments, which grants equal treatment between national and foreign investors, as well as speed in the processing of project approval processes,” he said.
“We have also introduced fiscal reforms that introduce tax incentives such as the reduction of VAT to 16 percent and the setting of Corporate Income Tax (IRPC) at 10 percent for the agriculture sector and the granting visa exemption for businesspeople and tourists from more than 29 countries, as well as the introduction of the electronic visa.”
President Chapo said these reforms are part of his Government’s broader vision to consolidate Mozambique’s economic diplomacy and attract meaningful foreign direct investment.
He emphasised that Mozambique’s economic diplomacy seeks to maximise the value of the country’s natural resources and build stronger bilateral and multilateral trade relationships.
President Chapo said his country’s participation at the ZITF reflects their commitment to strengthening economic ties and exploring new investment frontiers with neighbours and the global community.
“We live in a globalised world, characterised by growing multilateralism in political and economic relations in the international arena, where economic diplomacy plays a fundamental role. Our presence at this prestigious business event is part of this constant search to strengthen our economic diplomacy from a bilateral and multilateral point of view,” he said.
Bongani Ndlovu