FOREIGN TRADE
Mozambique’s external position is characterized by an accelerated growth in the importation of capital goods and specialized services associated with increasing inflows of foreign direct investments, which in their turn, constitute one of the key funding sources for the country’s current account deficit.
Exports have also seen a major rise as a result of increasing inflows of FDI with goods such as coal, natural gas, titanium minerals and aluminum taking the lead.
| Main Export Products | Main Import Products |
| Aluminum ingots, coal, electricity, natural gas, tobacco, heavy sands, sugar, wood, prawns, bananas, cotton, cashew chestnuts, fuel, cashew nuts and lobster. | Machinery, diesel, cereals, electricity, automobiles, medicines, gasoline, cooking oil, cement, beverages and sugar. |
| Main Export Markets | Main Import Origins |
| Belgium, South Africa, Spain, Portugal, United Kingdom, Italy, Holland, Zimbabwe, Swaziland, Japan, USA, Brazil and India. | South Africa, Australia, USA, India, Portugal, China, Germany, France, Japan, Spain, Italy and United Kingdom. |
ACCESS TO PREFERENTIAL MARKETS
Within the scope of economic cooperation, regional integration and trade, Mozambique has benefitted from several preferential systems of access to markets, with emphasis on the following:
- SADC market, through the Protocol on Trade in the SADC region;
- European Union market, through the EU/SADC Economic Partnership Agreement;
- American market, through the African Growth Opportunity Act (AGOA).
In terms of access to multilateral preferential markets, it is also important to highlight opportunities for access to the Market of Developed Countries through the Generalized System of Preferences “Everything But Arms”.
Mozambique also benefits from bilateral preferential systems, with emphasis on the markets of China, India and Indonesia.
The main requirements for accessing the aforementioned markets are:
- Being an operator of foreign trade;
- Having a certificate of origin;
- Using the Single Electronic Window.
ACCESS TO THE AMERICAN MARKET
Businesses can take advantage of and use the opportunities available in the American market (AGOA) and export:
- Free of quotas and customs duties;
- Products in more than 8000 tariff lines.
ACCESS TO MULTILATERAL PREFERENTIAL MARKETS
Businesses can take advantage and use the opportunities available in the multilateral preferential markets.
- Between Mozambique – SADC Free Trade Area countries + Continental Free Trade Area of Africa: Export all products free of quotas and customs duties;
- Between Mozambique – Member States of the Economic Partnership Agreement of the European Union + United Kingdom of Great Britain and Northern Ireland: Export all products free of quotas and customs duties;
- Between Mozambique and Developed Countries through the Generalized System of Preferences “Everything But Arms-EBA”: Export all products free of quotas and customs.
SADC TRADE PROTOCOL (SADCCP)
Advantages of the SADC Trade Protocol
- Free movement of goods (tariff exemption);
- Improved business climate through simplification of procedures and elimination of barriers to trade;
- Reduced costs of the commercial and industrial activities (boosting national industry through the acquisition of raw materials and production equipment at zero tariffs, increasing competitiveness);
- Product diversification and price reduction;
- Increased job opportunities.
Rules of origin
- Wholly produced/obtained (products that are produced or manufactured in a Member State using materials from the region are considered to originate in the SADC region).
- Sufficiently transformed or processed – the transformation of a product into a new one that is significantly different.
- Proof of origin (documentation).
Procedures to Benefit from the SADC Free Trade Area
One needs to be:
- Foreign Trade Operator.
- To have the Certificate of Origin.
- To use the Single Electronic Window