15June2020BIVE AERIAL SEA

Is Mozambique the place to invest in property?

The International Monetary Fund projected real GDP growth for Mozambique of 5.5% this year - up from just 2.1% in 2019. The World Bank suggests economic growth will recover towards 4.3% by 2021. So it’s hardly surprising that South African investors are starting to sit up and take notice of this opportunity just across the border.

Amid forecasts that continued easing of interest rates will provide additional economic stimulus, with large-scale investments in gas production likely to add a significant boost, Mozambique is beginning to make much more sense as an investment option as its tropical paradise contemporaries, Mauritius and the Seychelles.

Along with oil and gas, the tourism potential of South Africa’s neighbour goes without saying, but investors are also looking north for possibilities in agribusiness, mining, energy and logistics, and of course the burgeoning property market.

Pre Covid-19. Mozambique has over the years attracted the attention of investor specialists such as Deloitte and PWC. Deloitte’s Investment Opportunities in Mozambique: Tourism Edition, published in 2018, noted that the country offers many opportunities for venture capital investors, with GDP showing high and sustainable growth rates over the past decade. The authors add that this is mainly due to foreign direct investment in megaprojects in sectors such as production, natural resources, and energy. Additionally, Mozambique’s “exceptional” natural and cultural resources are cited as among the most realistic and viable options to diversify the economy going forward.

The PWC, meanwhile, said last year in its publication Doing Business in Africa, that natural gas discoveries, along with the launch of two natural gas projects, had positioned Mozambique as a future development hub. They projected investment spend to 2014 at $55billion.

South African entrepreneur and property developer Ettiene Erasmus, who first invested in the country 28 years ago says that despite doing business across sub-Saharan Africa, “Mozambique is still top of the list for development, and as an investment for business or leisure portfolios”.

“It’s clearly busy positioning itself to become one of Africa’s most sought-after destinations across all sectors, from business and leisure to offshore residential investment. And the world is taking notice,” he adds.

Attracting the attention of big-name property agencies

A number of other big-name property brands are celebrating Mozambique’s potential, among them Pam Golding International, with offices in Maputo, Matola and Pemba. Operating out of its offices in South Africa, RE/MAX also has a substantial presence in Mozambique.

Erasmus himself has made a hefty investment in a residential and tourism development in Mozambique’s Bazaruto Island View Estate. Developed under his Mozprops brand, the 42ha mixed-use estate lies on the coast in Vilankulos and, once completed, will be home to a hotel, a business centre and a residential resort, with private residences, beach lodges, and a marina. It offers a base for potential business operations, a second home, or even a retirement option for South African offshore investors.

Strong promotion of assets

Much is being done to enable Mozambique to realise its full potential, and ensure a business environment conducive to investment from across the globe.

Numerous private operations have also stepped in to promote its assets. Mozvest was established to highlight the significant investor opportunities that exist in the country across its natural resources as well as its tourism and logistics sectors. Its next conference to highlight its oil, gas and energy sectors is scheduled to take place in Cape Town in August 2020.

In turn, the annual MozamReal Investment Forum was created two years ago to improve access to opportunities and to offer insights into the country’s real estate, infrastructure, logistics and construction sectors in what it considers will become “one of Africa’s fastest growing economies” .

This is according to the event’s host, Kfir Rusin, managing director of African Property Investments (API) Events, a leader in producing business-to-business real estate-focused networking conferences. The third event is scheduled, at this point in time, to take place on 1 July at the Radisson Blu Hotel & Residence in Maputo, and is expected to attract 250 delegates representing 100 companies from over 25 countries.

Adds Erasmus: “Mozambique is one of the fastest growing economies in Africa. It’s on the cusp of an economic boom and, right now, still offers incredible untapped potential for wise investors.

 

This article was first published by IOL on the 8 July 2020. 

Latest Articles

Interview: South African Techpreneur Aisha Pandor Out to Sweep Kenya

04/01/2021

Aisha Pandor-SweepSouth Cofounder and CEO. Determined to link homeowners to cleaners and eradicate the plights they faced came the inception of Sweepsouth. The online platform, which began with the home-cleaning service, is now operating in 4 major cities in South Africa, Nairobi and a future expansion to West African countries in the works.   Women’s…

Read More

Litigation funding: Pioneering an alternative asset class in South Africa

04/01/2021

Provided By Taurus Capital 18 Mar 2021 Litigation funding occurs when a third party, with no direct interest in a legal case, finances the legal costs in return for a share of the claim proceeds if successful. “This form of finance allows proceedings to be pursued which otherwise would be hindered by a claimant’s lack of…

Read More

50th South African school now water-secure thanks to Woolies Water Fund, MySchool MyVillage MyPlanet

03/24/2021

Emafini Primary School in New Brighton, Gqeberha is the 50th school to receive a comprehensive water harvesting system from the Woolies Water Fund, helping them become water secure. The water harvesting system consists of two x 10 000l water tanks, gutters on the roof to channel the rain water into the tanks, a filtration system and large…

Read More

Interview: South African Techpreneur Aisha Pandor Out to Sweep Kenya

04/01/2021

Aisha Pandor-SweepSouth Cofounder and CEO. Determined to link homeowners to cleaners and eradicate the plights they faced came the inception of Sweepsouth. The online platform, which began with the home-cleaning service, is now operating in 4 major cities in South Africa, Nairobi and a future expansion to West African countries in the works.   Women’s…

Read More

Litigation funding: Pioneering an alternative asset class in South Africa

04/01/2021

Provided By Taurus Capital 18 Mar 2021 Litigation funding occurs when a third party, with no direct interest in a legal case, finances the legal costs in return for a share of the claim proceeds if successful. “This form of finance allows proceedings to be pursued which otherwise would be hindered by a claimant’s lack of…

Read More

50th South African school now water-secure thanks to Woolies Water Fund, MySchool MyVillage MyPlanet

03/24/2021

Emafini Primary School in New Brighton, Gqeberha is the 50th school to receive a comprehensive water harvesting system from the Woolies Water Fund, helping them become water secure. The water harvesting system consists of two x 10 000l water tanks, gutters on the roof to channel the rain water into the tanks, a filtration system and large…

Read More

Aiming high: how to make investment choices in the cannabis world

03/24/2021

Picking stocks in the cannabis space can be a daunting task, but what once used to be a very ‘out there’ sector is now whetting the appetite of investors. It all started in 2018, when Canada legalised recreational use, but the UK is becoming an increasingly fertile ground for the sector after the FCA allowed…

Read More