President of Mozambique raises investments in the Netherlands

22 May 2017

A visit by the President of Mozambique to the Netherlands led to some deals, the largest related to a US$7 billion investment by Shell to produce diesel from natural gas, the Mozambican press reported.

The president of national oil and gas company Empresa Nacional de Hidrocarbonetos (ENH), Omar Mithá, said that the Shell project will have a major economic impact in Mozambique, given that expected production “will fill one million petrol tanks per week,” according to Mozambican daily newspaper O Paí­s.

The possibility of a US$100 million investment from Heineken was also announced during Nyusi’s visit to the Netherlands. The brewing giant is considering building a brewery in the town of Bobole, Marracuene district, in the south of Angola.

The director of the Mozambican Investment Promotion Centre, Lourenço Sambo, said that although Heineken intends to invest in the country, the existing tax burden in Mozambique is holding back a final decision.

“We also think that the specific consumer tax is high, because there are even factories that are closing,” Sambo also told the AIM news agency, adding that the government plans to submit a proposal for review of the tax burden to parliament “as it is a barrier to investment,” he added.

In February, the National Petroleum Institute announced that the proposals by companies Yara International, Shell Mozambique and GL Energy Africa had been granted an international public tender for development of natural gas projects in Mozambique.

Norway’s Yara International will produce fertilisers and between 30 to 50 megawatts of electricity, Shell Mozambique will produce diesel and between 50 to 80 megawatts of electricity and GL Africa Energy, a Kenyan company based in London, will produce 250 megawatts of electricity from natural gas. (macauhub)