130 new industrial units created in Mozambique over last five years

7 September 2009

Maputo, Mozambique, 7 Sept – The national director for Industry, Sidónio dos Santos said Friday in Maputo that over the last five years 130 new small and medium-sized industrial units had been set up in Mozambique, which have created 125,000 jobs, particularly in the agri-industrial, metalo-mechanical and furniture sector, according to a report from Mozambican newspaper Notícias.

Dos Santos said that the industrial units were mainly set up in Mozambique’s three main municipal corridors, namely Maputo, Beira and the North.

“In the category of large industries, up until June of this year, seven companies created 2,547 jobs, in the medium category 11 units were set up, providing 1,754 jobs, and a total of 112 small and medium sized enterprises were created and which resulted in 2,772 jobs,” he said.

With a view to re-launching the textile and clothing sector, considered to be strategic for job creation, for the last few years the goevrnment has been implementing a revitalisation strategy based on making companies make use of available cotton for cloth and clothing production.

As part of this strategy, the industries that have been set up in Mozambique have benefitted, for a 10 year period, from a 100% exemption from paying corporate tax and, in the five years after that, from a 50% reduction on the same tax.

A recent study noted that there were 13 textile companies in Mozambique where work had been halted.

In the metalo-mechanical sector the Government approved a Ministerial diploma that provided the sector with a competitive edge by exempting it from customs taxes on import of raw materials.

Figures provided by Notícias showed that around 80 companies had so far benefitted from the incentive including placing the products on the Southern african Development Community (SADC) preferential market. (macauhub)