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Daniel Chapo courts Zimbabwe investors at ZITF
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Mozambican President Daniel Francisco Chapo has emphasized the importance of expanding economic cooperation between Mozambique and Zimbabwe, calling for more robust trade relations and foreign direct investment (FDI) at the opening of the Zimbabwe International Trade Fair (ZITF) last Friday.
President Chapo highlighted a range of sweeping reforms introduced by the Mozambican Government aimed at creating a more business-friendly environment. These reforms, he said, will not only attract foreign investments but also boost trade between the two nations.
Speaking at the prestigious event in Bulawayo, President Chapo underlined Mozambique's strategic membership in several influential regional and international trade frameworks, including 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. These affiliations, he noted, provide investors access to expansive global markets, making Mozambique an ideal destination for trade and investment.
"Our participation in these international platforms ensures that we have access to an expansive market in the region, on the continent, and globally. This is a significant advantage for any business looking to expand its horizons," President Chapo said.
In terms of bilateral trade between the two countries, President Chapo revealed that from 2020 to 2024, Mozambique exported goods worth US$804 million to Zimbabwe. However, Zimbabwe's exports to Mozambique were much lower, amounting to only US$134.9 million during the same period. Despite a decline in Mozambique's exports by 4 percent and a sharp 66 percent increase in imports from Zimbabwe, President Chapo reaffirmed that Zimbabwe remains an important trading partner for Mozambique, ranking 15th among Mozambique's export destinations in 2024.
Key Mozambican exports to Zimbabwe include electricity, fertilizers, rice, palm oil, aluminium wires, and petroleum products. Meanwhile, Zimbabwe's main exports to Mozambique were unmanufactured tobacco and flour, placing Zimbabwe 37th on the list of Mozambique's import sources.
"The main products exported to Zimbabwe include electricity, fertilizers, nitrogen-based fertilizers, rice, palm oil, and other related products," said President Chapo, adding that despite the imbalanced trade, the relationship remains crucial for both countries.
The Mozambican leader also encouraged Zimbabwean businesses to seize the investment opportunities in Mozambique, particularly in the agricultural sector. He pointed to the fertile lands in the Zambezi Valley, which stretches across Tete, Manica, Sofala, and Zambezia provinces—regions located near the Zimbabwean border—as prime areas for investment.
"Mozambique offers competitive advantages in the agriculture sector, particularly in the Zambezi Valley, which has excellent agro-climatic conditions for farming. This is a region with significant potential for agricultural investment, and I urge Zimbabwean businesses to explore these opportunities," President Chapo said.
In line with its commitment to fostering a conducive business environment, Mozambique has rolled out key economic reforms. Notably, the country recently introduced a new Private Investment Law designed to streamline investment processes and ensure equal treatment for both domestic and foreign investors.
Additionally, fiscal reforms have been implemented, including a reduction in VAT to 16 percent and the establishment of a 10 percent Corporate Income Tax (IRPC) rate for the agriculture sector. To further facilitate investment, Mozambique has also introduced a visa exemption for businesspeople and tourists from over 29 countries, alongside the introduction of an electronic visa system.
"These reforms are part of our broader vision to strengthen Mozambique's economic diplomacy and attract meaningful foreign direct investment," said President Chapo. "By maximising the value of our natural resources and building stronger trade relations, we are positioning Mozambique as a competitive player in the global economy."
President Chapo's participation at ZITF highlights Mozambique's commitment to strengthening its economic ties with Zimbabwe and other international partners. He underscored that the growing trend of multilateralism in global politics and economics necessitates greater cooperation between neighbouring countries, especially in the Southern African region.
"We live in a globalized world where economic diplomacy plays a pivotal role. Our presence at ZITF reflects Mozambique's dedication to enhancing economic relations with Zimbabwe and exploring new investment opportunities," President Chapo concluded.
The call for deeper economic collaboration between Mozambique and Zimbabwe signals a positive shift in their bilateral relations, one that promises to foster growth and development in both nations.
President Chapo highlighted a range of sweeping reforms introduced by the Mozambican Government aimed at creating a more business-friendly environment. These reforms, he said, will not only attract foreign investments but also boost trade between the two nations.
Speaking at the prestigious event in Bulawayo, President Chapo underlined Mozambique's strategic membership in several influential regional and international trade frameworks, including 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. These affiliations, he noted, provide investors access to expansive global markets, making Mozambique an ideal destination for trade and investment.
"Our participation in these international platforms ensures that we have access to an expansive market in the region, on the continent, and globally. This is a significant advantage for any business looking to expand its horizons," President Chapo said.
In terms of bilateral trade between the two countries, President Chapo revealed that from 2020 to 2024, Mozambique exported goods worth US$804 million to Zimbabwe. However, Zimbabwe's exports to Mozambique were much lower, amounting to only US$134.9 million during the same period. Despite a decline in Mozambique's exports by 4 percent and a sharp 66 percent increase in imports from Zimbabwe, President Chapo reaffirmed that Zimbabwe remains an important trading partner for Mozambique, ranking 15th among Mozambique's export destinations in 2024.
Key Mozambican exports to Zimbabwe include electricity, fertilizers, rice, palm oil, aluminium wires, and petroleum products. Meanwhile, Zimbabwe's main exports to Mozambique were unmanufactured tobacco and flour, placing Zimbabwe 37th on the list of Mozambique's import sources.
"The main products exported to Zimbabwe include electricity, fertilizers, nitrogen-based fertilizers, rice, palm oil, and other related products," said President Chapo, adding that despite the imbalanced trade, the relationship remains crucial for both countries.
The Mozambican leader also encouraged Zimbabwean businesses to seize the investment opportunities in Mozambique, particularly in the agricultural sector. He pointed to the fertile lands in the Zambezi Valley, which stretches across Tete, Manica, Sofala, and Zambezia provinces—regions located near the Zimbabwean border—as prime areas for investment.
"Mozambique offers competitive advantages in the agriculture sector, particularly in the Zambezi Valley, which has excellent agro-climatic conditions for farming. This is a region with significant potential for agricultural investment, and I urge Zimbabwean businesses to explore these opportunities," President Chapo said.
In line with its commitment to fostering a conducive business environment, Mozambique has rolled out key economic reforms. Notably, the country recently introduced a new Private Investment Law designed to streamline investment processes and ensure equal treatment for both domestic and foreign investors.
Additionally, fiscal reforms have been implemented, including a reduction in VAT to 16 percent and the establishment of a 10 percent Corporate Income Tax (IRPC) rate for the agriculture sector. To further facilitate investment, Mozambique has also introduced a visa exemption for businesspeople and tourists from over 29 countries, alongside the introduction of an electronic visa system.
"These reforms are part of our broader vision to strengthen Mozambique's economic diplomacy and attract meaningful foreign direct investment," said President Chapo. "By maximising the value of our natural resources and building stronger trade relations, we are positioning Mozambique as a competitive player in the global economy."
President Chapo's participation at ZITF highlights Mozambique's commitment to strengthening its economic ties with Zimbabwe and other international partners. He underscored that the growing trend of multilateralism in global politics and economics necessitates greater cooperation between neighbouring countries, especially in the Southern African region.
"We live in a globalized world where economic diplomacy plays a pivotal role. Our presence at ZITF reflects Mozambique's dedication to enhancing economic relations with Zimbabwe and exploring new investment opportunities," President Chapo concluded.
The call for deeper economic collaboration between Mozambique and Zimbabwe signals a positive shift in their bilateral relations, one that promises to foster growth and development in both nations.
Source - The Sunday News
