The government of Mozambique has named the district of Mocuba as a Special Economic Zone, a move that is intended to contribute to development of that area of Zambézia province, a government spokesman said Tuesday in Maputo.
The deputy Justice minister, Alberto Nkutumula, also announced that the government, at a Council of Ministers meeting, had decided to transform a 19-hectare area of textile company Companhia Têxtil de Mocuba into an Industrial Duty Free Area, and in both cases investors will be offered tax breaks.
The Mocuba Special Economic Zone, which covers an area of 10,727 square kilometres, also includes the Munhamade administrative post, in Lugela district, which has the advantage of being near the area where the Macuse deep water port is being built.
Nkutumula noted that the government’s decision was intended to promote the district’s potential in the forestry and the agricultural sector, in particular..
The Special Economic Zones (SEZs) are legally defined at specific areas that benefit from some special incentives, and towards which certain investments are directed. Products made at the SEZs can be entirely directed at the domestic market. Industrial Duty Free Areas are smaller and fenced off and 70 percent of their production has to be exported out of the country.
By turning Mocuba into an SEZ Mozambique will now have three areas of this type – Mocuba, Nacala and Beira – and now has a second Industrial Duty Free Area along with the Matola Industrial Park. (macauhub/MZ)