US business mission travels to Mozambique in July

24 April 2006

Maputo, Mozambique, 24 April – A mission from US business association Corporate Council on Africa (CCA) is due to travel to Mozambique in July to assess business opportunities in several areas, the CCA said Monday.

In a statement, the CCA said that the business mission would visit Tanzania from June 30 and, between July 5 and 9 would travel to Mozambique, where it would meet with government members, business associations and other economic agents all over the country.

The CCA, which considers Mozambique to be “an emerging market” and has defined as local investment opportunities the agricultural, fishing, tourist, telecommunications and port sectors.

The CCA, which was set up in 1993, aims to strengthen and ease trade relations between the United States and African countries, as well as to “improve Africa’s profile within the US business community.”

Several CCA missions have already visited Mozambique, to follow the country’s economic development in the post civil war period, and increasing relations with the United States.

In 2004 the US was Mozambique’s 17th largest foreign investor and it had moved to ninth by 2005, a year in which the US injected US$1.5 million in several projects.

The US has been present in Mozambique since the beginning of the country’s privatization process, when in 1996 Seaboard Corporations (Kansas), bought a milling factory in Beira.

Coca-Cola, through its subsidiary South African Bottling Company, has several bottling plants in Maputo, Chimoio and Nampula, ensuring that its products are distributed all over the country, where Colgate-Palmolive also has a strong presence.

US companies Railroad Development Corporation and Edlow Resources have controlled the Nacal corridor concessions for managing Nacala port and the respective railroad network.

Figures provided to Macauhub by the US embassy in Maputo showed that there have been investments in a chestnut plantation in Niassa and an aquaculture project in Cabo Delgado, both provinces located in Northern Mozambique.

In terms of bilateral trade, the advantage is clearly on the United States’ side, which between 2003 and 2004, increased its exports to Mozambique from US$62.3 million to US$75.8 million, while, in the same period Mozambican exports to the US rose from US$8.7 million to US$9.9 million.

The majority of trade between the two countries is made up of agricultural products, while the disappearance of its textile industry has prevented Mozambique from taking advantage of “Wearing Apparel” incentives for which it had qualified in 2002.

In 2004, when Mozambique’s benefits of less developed country expired, Mozambican sales of textiles and clothing to the US totaled US$2.2million, half a million dollars less than in 2003. (macauhub)