Mozambique has about 36 million people, large offshore gas discoveries in the Rovuma Basin, and three LNG projects that are producing, being built or close to a decision. TotalEnergies restarted its $20 billion Mozambique LNG project in January after four and a half years of force majeure, and Eni began drilling for Coral North this month. Outside the gas fields the picture is much weaker. The economy shrank slightly in 2025, the IMF rates public debt as unsustainable, and the insurgency in Cabo Delgado is still active. Here is what the data says, where the openings are, and what to check before you commit.
This guide is for companies setting up in Mozambique or selling to its gas, port and mining projects. For the wider economy see Mozambique's economy in figures.
It is a good time for gas and for the businesses that serve it, and a hard time for anyone who needs a stable currency or a healthy state as a customer. The gas story is real: Mozambique LNG restarted in January 2026, Coral North began drilling this month, and ExxonMobil is moving towards a decision on Rovuma LNG. Around it, the government is close to default on some debts, the IMF has called public debt unsustainable, and the insurgency in Cabo Delgado is still going. Investors who are already in gas, ports, logistics or mining, or who can sell to the big projects, are pressing ahead. Investors who depend on household spending or a fixed exchange rate are waiting for the IMF programme.
A disputed election. Daniel Chapo of Frelimo was declared the winner with 65% of the vote. Venâncio Mondlane, officially second with 24%, said he had won. Protests and a harsh police response followed, and Amnesty International says more than 300 people were killed. Chapo took office on 15 January 2025.
US financing returns. The US Export-Import Bank re-approved a loan of up to $4.7 billion for Mozambique LNG, which had been paused since 2021.
Force majeure ends. After Eni and partners took the investment decision on Coral North in October, the Mozambique LNG partners lifted the force majeure that TotalEnergies had declared in 2021, on 7 November.
Construction restarts. TotalEnergies and President Chapo announced a full restart at Afungi on 29 January, with more than 4,000 workers mobilised and first LNG targeted for 2029.
Debt called unsustainable. The IMF Executive Board concluded its Article IV review on 13 February and assessed public debt as unsustainable under current policies.
Mozal shuts. South32 put the Mozal aluminium smelter on care and maintenance on 15 March after talks on affordable power failed. Around the same time Mozambique repaid its remaining IMF loans, about $630 million, from reserves.
New gas laws. A revised Petroleum Law (Law 8/2026) and the first Local Content Law (Law 9/2026) were both published on 3 June.
Downgrade and IMF talks. Moody's cut the foreign currency rating to Caa3. An IMF mission was in Maputo from 9 to 18 September to discuss a new Extended Credit Facility programme, and no deal has been announced.
Drilling and a stake swap. Eni began a ten-month drilling campaign for Coral North, and ExxonMobil agreed to raise its share of Rovuma LNG to 50%. Mondlane's trial before the Supreme Court is due to start on 17 November. Compare inflation across Africa.
What would a devaluation of around 30%, a debt restructuring or another year of attacks in Cabo Delgado mean for your project, your supply contracts and your payment terms?
Oxford Economics expects the metical to be devalued by about 30% in early 2027 if an IMF programme is agreed. Whether that helps or hurts depends on whether you earn in dollars or in meticais, and on who pays you. We work it through for your sector on a call.
A young, mostly rural market of about 36 million people. Almost 44% are under 15, only 37% live in towns and cities, and about one person in five uses the internet. Income per head is about $630 a year, so spending power is thin: households spent about $16 billion in 2025. The labour force is about 15.7 million. Just over half of adults have an account, so much buying is in cash and in informal markets.
Minimum wages are set by sector and revised by the government with unions and employers. The labour market is rigid, and employers say skilled technical staff are scarce, so contractors on big projects train workers on site. TotalEnergies expects up to 7,000 direct jobs for Mozambicans at the peak of construction at Afungi. Official unemployment is about 6.6%, but most people work in farming or the informal economy. See unemployment across Africa and education in Mozambique.
Portuguese is the official and business language. Makhuwa, Sena, Tsonga and other languages are widely spoken outside the cities.
Mozambique suits investors who sell to projects, ports, miners and the state rather than to households. The consumer market is small and the metical is unpredictable. Maputo and Matola hold most of the spending power, Beira, Nampula and Nacala are growing, and Pemba is the base for the northern gas projects, close to the area of the insurgency.
Who exactly buys in your category, in which provinces, and at what price?
We answer this with our own survey panel and field interviews across Mozambique's provinces.
UNCTAD counted about $5.7 billion of inflows in 2025, up 60% from about $3.6 billion in 2024, and linked the rise to hydrocarbon and LNG projects. That is about a quarter of GDP, which shows how much of the economy depends on a handful of gas developments. Money going into anything else is small.
The UAE and Mauritius are on top, but these numbers show where the holding companies sit, not where the money comes from. The UAE figure fits ADNOC's XRG, which bought Galp's 10% share of the Rovuma gas block in 2025. Mauritius is a common holding base for investment into Africa, and its tax treaty with Mozambique lowers dividend withholding tax to 8% or 10% for qualifying parents. The Netherlands plays a similar role. See who invests in Africa.
India fits the Indian state oil companies in Mozambique LNG, Portugal the banks and Galp, and South Africa the gas fields run by Sasol, banks, builders and retailers. The gas majors from the US, Italy, France, Japan and China are missing from the top six, which suggests their stakes sit in holding companies in other countries.
Which foreign operators are already active in your sector, and who has entered or left in the last two years?
We map competitors, recent entrants and exits by sector and province. That list is part of every market-entry brief.
The 2023 Private Investment Law (Law 8/2023) treats foreign and Mozambican investors alike, guarantees the transfer of profits once tax is paid, and offers tax holidays and customs exemptions to approved projects, with the best terms in special economic zones and industrial free zones. The corporate tax rate is 32% and VAT is 16%. Dividends paid abroad carry 20% withholding tax unless a treaty lowers it. Projects must register with APIEX, the investment and export promotion agency, to claim incentives.
| Programme | What it offers | Who runs it |
|---|---|---|
| Private Investment Law, 2023 | Tax holidays reported at 5 to 10 years for approved projects, a 10-year corporate tax exemption in industrial free zones, customs exemptions and faster depreciation. Small projects register; large ones need authorisation. The detailed rules are in Decree 8/2024. | APIEX and the Tax Authority |
| Investor guarantees | Equal treatment with Mozambican investors, compensation at market value if property is taken in the public interest, and the right to send profits, royalties and loan repayments abroad, subject to foreign exchange rules. | APIEX and Banco de Moçambique |
| Special economic zones | Corporate tax exemption in the first years, then reduced rates running to about 15 years, no import duty or VAT on building materials and equipment, faster visas for foreign workers and a free exchange regime. The rules sit in separate decrees for each zone. | APIEX and the zone managers |
| Oil and gas regime | The June 2026 Petroleum Law has three contract types, a free-carry state share of at least 15% through ENH, and a minimum 25% of oil and LNG production reserved for the home market. Existing contracts stay valid but the new rules apply once they are amended or extended. | National Petroleum Institute (INP) and ENH |
| Tax treaties | Dividend withholding tax of 20% falls to 8% or 10% under some treaties. Mauritius is the most used for holding structures. | Tax Authority |
| Market access | Mozambique is a member of SADC and trades with the EU under the SADC Economic Partnership Agreement. | Ministry of Industry and Commerce |
| Zone | Where | Best known for |
|---|---|---|
| Nacala SEZ | Nampula province, around the deep-water port of Nacala | Logistics, industry and agro-processing, with about 194 projects reported |
| Beluluane Industrial Park | Matola, next to Maputo | An industrial free zone that hosts Mozal and where a solar panel plant is being built |
| Manga-Mungassa SEZ | Beira, Sofala province | Industry, logistics and services, run by a private developer |
| Limpopo Agro-Business SEZ | Gaza province | Irrigated farming and food processing |
| Mocuba SEZ | Zambézia province | Agriculture, forestry and processing |
Which regime and zone fit your project, how long is the holiday, and what is the package worth over ten years?
The answer depends on your sector, location, export share and how you structure the holding company. We run the numbers with you before you choose.
It is not easy, and the risks are concentrated in three places: the state's finances, the exchange rate and the north. Investors in gas, ports and mining operate profitably by keeping their cash in dollars and offshore, by working with the big projects, and by choosing sites away from Cabo Delgado. Mozambique ranked 138th of 190 in the last World Bank Doing Business report, in 2020, before the ranking was dropped. In practice, these are the problems investors raise most.
| Roadblock | How serious | What it looks like | What investors do |
|---|---|---|---|
| Debt and currency | High | The IMF calls public debt unsustainable, Moody's rates it Caa3 and Fitch CC, and a restructuring of commercial debt, including the $900 million Eurobond due 2031, is widely expected. Oxford Economics forecasts a devaluation of about 30% in early 2027 if an IMF programme is signed. | Price contracts in dollars, avoid long payment terms with state bodies, hold cash offshore and watch the IMF talks. |
| Insurgency in Cabo Delgado | High | Islamic State Mozambique has fought since 2017 and has killed more than 6,500 people. Between 21 September and 27 October 2026 about 7,000 people fled new attacks. Rwandan troops, more than 4,000, guard the Palma area, and Rwanda threatened in March to leave if funding is not found. A raid in Niassa on 3 September was the first there since May 2025. Compare safety across Africa. | Base staff and offices in Maputo, Matola, Beira or Nacala, follow the security plans of the gas projects if you work at Afungi or Pemba, and buy political risk and war cover. |
| Dollar shortages | High | The official rate is steady near 64, but banks ration dollars. Importers struggle to get the dollar guarantees that ports and fuel suppliers ask for, and a civil society study in May 2026 linked the shortage to the closure of more than 500 companies. | Earn dollars through exports or project contracts, keep imports to what you can fund offshore, and agree with your bank how you will pay suppliers. |
| Politics after the 2024 election | Medium | Mondlane, who leads the Anamola party, is due before the Supreme Court on 17 November. The national dialogue promised in March 2025 has made little progress. Frelimo holds 171 of 250 seats in parliament. | Plan for protests and road disruption around major dates, and keep contingency plans for staff and stock. |
| Power, roads and weather | Medium | Mozal closed in March because South32 could not secure affordable power. The N6 road to Beira has long queues at the border and the port, and the government cites climate shocks such as cyclones and floods in its growth forecasts. | Secure your power contract before you commit, build in extra time for freight, and insure stock and plant against storms and floods. |
| Bureaucracy and corruption | Medium | Agencies apply the same rules differently, customs is a known corruption risk, and the zone rules sit in separate decrees. Land use rights cannot be sold or used as collateral. A hidden debt scandal in 2016 involved about $2 billion of undisclosed loans. | Use local counsel, get approvals in writing from APIEX and the Tax Authority, and build compliance into every local partnership. |
Which province, port and partner suit a project like yours, and how exposed are they to the insurgency and the currency?
Provinces differ sharply in security, power, land and labour. We compare shortlisted options side by side for your sector and update the risk picture as it changes.
Most foreign investors follow the same sequence. Registering the investment and the company is straightforward on paper. Bringing in capital, land, dollars and work permits take longer, and a foreigner abroad needs a local representative to file documents.
Oil, gas and mining need contracts under their own laws, and since June 2026 petroleum suppliers also come under the Local Content Law, which expects Mozambican partners. Some activities need a licence from the sector ministry.
Most foreign investors set up a limited company (Lda) or a joint stock company. The 2022 Commercial Code added a simplified joint stock company and requires companies to disclose their beneficial owners.
The investment promotion agency, APIEX, registers or authorises the project under the 2023 Private Investment Law. You need this to claim tax and customs incentives, and large projects need authorisation.
Apply through the one-stop shop (BAU) and the Legal Entities Registry. You reserve the name, sign the articles and receive the definitive certificate, which sources put at 10 to 30 days. A foreigner abroad gives a local representative a power of attorney.
Get a tax number (NUIT) from the Tax Authority, which is free and usually quick, then register for corporate tax at 32% and VAT at 16%, and file online.
Foreign employees need work authorisation from the labour ministry and residence through the national migration service. The labour law limits how many foreigners a company can employ, so check the cap for your size.
All land belongs to the state. You obtain a land use right (DUAT) for up to 50 years, renewable, which cannot be sold or used as collateral. Zones offer ready plots. Agree your power connection with the utility early.
Head offices, banks, the main port and the Beluluane free zone, plus the road and rail link to South Africa at Ressano Garcia.
The port for central Mozambique, Zimbabwe and Zambia, and the Manga-Mungassa zone. The N6 road to the border is slow.
A deep-water port, a special economic zone and the rail corridor to Malawi, with a port expansion tender authorised. The cement and graphite supply chains are growing here.
The coal province on the Zambezi, linked by rail to the ports of Beira and Nacala.
The base for the gas projects in Cabo Delgado. Business is possible with the projects' security arrangements, but this is the area of the insurgency.
Graphite and farming in the far north-west, where a Chinese plant opened in January 2026. A raid in September 2026 shows that the insurgency can spread.
How long does each step take in practice, what does it cost, and which steps can run at the same time?
Timelines depend on the sector, the province and how you bring in capital. We give you a realistic plan for yours.
The strongest cases build on gas, the ports and corridors that serve the region, minerals and the government's push to replace imports. These six stand out in the data.
Contractors, catering, logistics, security, legal and accounting services will all be bought from Mozambican firms or partnerships under Law 9/2026. See the deep dive below.
Held back: which contract packages are open, who the prime contractors are, and which certified Mozambican partners are available.
President Chapo cited these figures at the TRANS-LOG MOZ forum in November 2026. DP World's Maputo terminal has a concession to 2058 and a first expansion phase of about $165 million, and the government has authorised a tender to expand Nacala port.
Held back: which concessions and subcontracts are open, and who pays in dollars.
Mozambique has graphite, heavy mineral sands and coal. Chinese firm Jinan Yuxiao opened a graphite processing plant in Niassa for about $150 million. Graphite prices are weak, so margins are not guaranteed.
Held back: which licences are available, and the logistics and security of each site.
The new Petroleum Law reserves a share of production for the home market, and the ageing Pande and Temane gas fields are declining. That opens room for gas-to-power, fertiliser and industrial users.
Held back: which projects have gas allocations and offtake agreements, and what price they will pay.
Cement, ceramics, steel and solar panels are being made locally. From 2026 the central bank also lets banks deduct new lending to import-substituting and exporting companies from their reserve requirement.
Held back: which products have the demand, and whether the dollars to pay for equipment are available.
The government is building two agro-business zones, in Gaza (Limpopo) and Zambézia (Mocuba). The sector employs most people but yields are low.
Held back: which crops and provinces have the supply and margins, and the export rules for each.
Coral Sul (Eni) has exported LNG since November 2022 and has run at its full 3.4 million tonnes a year since 2023. Mozambique LNG (TotalEnergies, 26.5% and operator, with Mitsui, ENH, ONGC Videsh, Beas Rovuma, BPRL and PTTEP) is a $20 billion onshore plant at Afungi with a capacity of 13.1 million tonnes a year, restarted in January 2026 with more than 4,000 workers, of whom over 3,000 are Mozambican. Coral North (Eni) is a second floating plant, sanctioned in October 2025, with a ten-month drilling campaign that began in November 2026 and a start-up planned for 2028. Rovuma LNG (ExxonMobil, now 50%, with CNPC, KOGAS, XRG and ENH) would make 18.6 million tonnes a year at a cost of around $27 to $30 billion, with a final investment decision targeted for the end of 2026 and first LNG in the early 2030s.
For suppliers the rules changed in June 2026. Under the Local Content Law, as law firms summarise it, goods and services must meet minimum Mozambican shares: 80% for catering and cleaning, 70% for legal services, 60% for accountancy, 50% for construction and 30% for drilling, banking and insurance. A Mozambican-majority firm wins if its price is no more than 20% above a qualified foreign bidder. Business partnerships need Mozambicans to hold at least 20% of the shares, firms must be certified, and fines run from $50,000 to $300,000. The implementing rules were due in September, so check the final text. TotalEnergies held a supplier meeting with more than 200 Mozambican companies on 5 November.
Works: tight global LNG supply, buyers in Europe and Asia looking for long-term gas, ExxonMobil putting more of its own money in, a US EXIM loan of up to $4.7 billion for Mozambique LNG, and a restart that is already under way. For suppliers it also works to have a certified Mozambican partner, a dollar contract and a clear view of the project's own security plan.
Sinks it: security first. Rwandan troops guard the Palma area, the EU said it would not renew its funding beyond May 2026, and Rwanda has threatened to leave without funding. Next come approvals: in October the government had still to approve Mozambique LNG's revised budget and Rovuma LNG's amended plan, and TotalEnergies has sought recognition of the cost of the four-year pause. The state also wants 25% of production for the home market. Finally, the sums are large against a country close to default, so payment and political risk reach every contractor.
Which contract packages are still open, who are the prime contractors, and which Mozambican partner should you sign with?
We map prime contractors, certified local suppliers and open tenders for each project, and track the new rules as they are issued. That is the core of a supplier brief.
China's biggest stake is in gas: CNPC is a partner with ExxonMobil, KOGAS, XRG and ENH in the Rovuma Basin block behind Coral Sul, Coral North and Rovuma LNG. Outside gas, Chinese companies are building factories in materials and minerals. In January 2026 Jinan Yuxiao Group opened a graphite processing plant in Nipepe, Niassa, with about $150 million invested and capacity of 200,000 tonnes a year. At an investment conference in Xi'an in October 2025, four agreements were signed, and the two governments said they intend to invest $333 million in two cement factories, a jetty and hospital services in Nampula and Cabo Delgado. That figure is an intention, not money spent.
What Chinese investors ask us most is practical: how to be paid in dollars, how the Local Content Law affects Chinese contractors, which areas are safe, how to send profits home, and which Mozambican partners can be trusted. These are the questions our research team answers.
Is there room for your product, at your price, and who should you partner with?
We size the market, test prices with real buyers through our survey panel, and vet local partners before you sign anything.
Yes, in most sectors. The 2023 Private Investment Law treats foreign and Mozambican investors equally, and a company can be wholly foreign-owned. Foreigners cannot own land, only a land use right (DUAT) of up to 50 years. Since June 2026 foreign suppliers to the oil and gas industry must work with Mozambican partners, and Mozambican nationals must hold at least 20% of partnerships under the Local Content Law.
It depends on the sector. Foreign investment was about $5.7 billion in 2025, Mozambique LNG restarted in January 2026 and inflation is 6.3%. But the economy shrank about 0.5% in 2025, the IMF projects growth of only 1% in 2026, public debt is rated unsustainable, and the insurgency in Cabo Delgado continues. Gas, ports and mining look strongest. Household-spending businesses face the most currency risk.
Maputo, Matola, Beira and Nacala are far from the fighting and are where most foreign companies operate. Cabo Delgado, the home of the gas projects, has an active insurgency, and about 7,000 people fled new attacks between 21 September and 27 October 2026. Protests after the 2024 election killed more than 300 people. Investors check security advice for each province and buy political risk cover.
The corporate income tax rate is 32%. VAT is 16%, with a 5% rate for some private health and education services. Dividends paid to non-residents carry 20% withholding tax, lower under some treaties, for example 8% or 10% for Mauritian parents. Gains on the sale of assets have been taxed under the corporate tax code since 1 January 2026. Special economic zones and approved projects can get tax holidays.
Yes. The investment law guarantees the transfer of profits, royalties and loan repayments abroad once taxes are paid, subject to foreign exchange rules, and withholding tax must be settled with the Tax Authority first. In practice, banks ration dollars, so payments can be delayed. Investors agree the process with their bank early and often hold revenue offshore.
TotalEnergies' $20 billion Mozambique LNG lifted force majeure on 7 November 2025 and restarted construction on 29 January 2026. The project was about 45% built in October 2026, employs more than 4,000 workers, and targets first LNG in 2029. The government had still to approve the revised budget in October. The US Export-Import Bank has approved a loan of up to $4.7 billion.
Coral North, Eni's second floating LNG plant, took its investment decision in October 2025, began drilling in November 2026 and aims to start in 2028. ExxonMobil's Rovuma LNG, planned at 18.6 million tonnes a year and about $27 to $30 billion, had no final investment decision as of 6 November 2026. ExxonMobil is raising its stake to 50% and the partners are targeting a decision by the end of 2026.
Law 9/2026, published on 3 June 2026, sets minimum Mozambican shares for oil and gas contracts, such as 80% for catering and cleaning, 60% for accountancy and 50% for construction, according to law firm summaries. Mozambican-majority firms win if their price is within 20% of a foreign bidder's. Fines run from $50,000 to $300,000, and implementing rules were due about 90 days after publication.
The IMF assessed public debt as unsustainable in February 2026, Moody's rates it Caa3 and Fitch CC. Mozambique repaid its IMF loans early and is negotiating a new programme, and an IMF mission visited on 9 to 18 September 2026. Its only Eurobond is $900 million at 9%, due in 2031. The metical has held near 64 to the dollar, and Oxford Economics expects a devaluation of about 30% in early 2027 if a programme is agreed.
Yes. CNPC is a partner in the Rovuma Basin gas block. Jinan Yuxiao Group opened a $150 million graphite plant in Niassa in January 2026, and Chinese groups run the Manga-Mungassa zone in Beira and cement plants in the north. Announcements are larger than money spent: the $333 million agreed with China in 2025 is an intention.
Public data gets you to a shortlist. The decision needs answers specific to your product, your budget and your timeline. These are the questions we answer for investors on a first call:
Prefer email? Write to investors@pollsafrica.com.
Every figure on this page comes from an official statistics office, a central bank, an international body, a company statement or a report that cites one. Dates show when each figure was published or last updated. Mozambique's debt talks, security situation and gas projects are changing quickly, so check current advice before you travel or commit. This page is general information about Mozambique's economy and is not investment, legal, tax or security advice.