VZCZCXYZ0010
RR RUEHWEB

DE RUEHTO #0060/01 0180638
ZNR UUUUU ZZH
R 180638Z JAN 08
FM AMEMBASSY MAPUTO
TO RUEHC/SECSTATE WASHDC 8456
RUCPDOC/DEPT OF COMMERCE WASHDC
INFO RUCPCIM/CIMS NTDB WASHDC

UNCLAS MAPUTO 000060 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EINV EFIN ELAB KTDB PGOV OPIC USTR MZ
SUBJECT: MOZAMBIQUE'S 2008 INVESTMENT CLIMATE STATEMENT 
 
  ¶1.  The following is Mozambique's 2008 Investment Climate 
Statement. 
 
------------------------------ 
Openness to Foreign Investment 
------------------------------ 
 
¶2.  Mozambique encourages foreign direct investment.  CPI, 
the government's Investment Promotion Center, seeks to bring 
investors to Mozambique and should be a potential investor's 
primary contact with the government.  CPI is particularly 
interested in increasing investment in the central and 
northern regions of the country in order to address large 
regional development imbalances. 
 
Contact information for the Investment Promotion Center (CPI) 
is as follows: 
 
Investment Promotion Center (CPI) 
Rua da Imprensa, 332 (ground Floor) 
Caixa Postal 4635, Maputo 
Tel: (258) (21) 313310/75 or (21) 313295/99 
Fax: (258) (21) 313325 
Internet:  www.cpi.co.mz 
 
¶3.  Mozambique's Law on Investment, No. 3/93, dated June 24, 
1993, and its related regulations govern foreign investment. 
Additional amendments were passed over the next two years: 
Decree No. 14/93 on July 21, 1993 and decree No. 36/95 on 
August 8, 1995.  The law and amendments generally do not make 
distinctions based upon investor origin, nor do they limit 
foreign ownership or control of companies.  The lengthy 
registration procedures can be problematic for any investor 
) national or foreign -- but those unfamiliar with 
Mozambique and the Portuguese language face greater 
challenges.  Working with a local consulting firm or partner 
familiar with the requirements will facilitate the 
registration process.  CPI assists both local and foreign 
investors in obtaining licenses and permits.  However, in 
general, large investors receive much more support from the 
government in the business registration process than small 
and medium-sized investors. 
 
¶4.  The World Bank's "Doing Business in 2008" report 
indicates that entrepreneurs can expect to go through at 
least 10 identifiable steps to launch a business that 
according to the World Bank lasts, on average, 29 days. 
Overall, the ease of doing business in Mozambique is ranked 
at 134 out of 178 countries.  The government and private 
sector continue to work with donors to improve the business 
environment. 
 
¶5.  To date Mozambique's privatization program has been 
relatively transparent, with open and competitive tendering 
procedures in which both foreign and domestic investors have 
participated.  Most remaining parastatals are in public 
utilities, making their privatization more politically 
sensitive.  While the government has indicated an intention 
to take on partners in most of these utility industries, 
progress on privatization has been slow. 
 
¶6.  Government authorities must approve all foreign and 
domestic investment.  Currently CPI handles the approval 
process for both foreign and domestic investors.  The final 
approval is granted by the following government entities: 1) 
The Provincial Governor for domestic investment up to USD 
100,000; 2) The Minister of Planning and Development for 
domestic investment exceeding USD 100,000 and foreign 
investment up to USD 100 million; and 3) The Council of 
Ministers for any investment project exceeding USD 100 
million and those involving large tracts of land (5,000 
hectares for agricultural investment and 10,000 hectares for 
livestock and forestry projects. 
 
-------------------------------- 
Conversion and Transfer Policies 
-------------------------------- 
 
¶7.  Foreign exchange retention accounts are permitted for 100 
percent of foreign exchange earnings without formal 
justification.  These may be used to purchase imports. 
Investment registration and repatriation procedures must be 
followed to repay foreign loans and for the repatriation of 
invested capital, profits and dividends.  Delays are uncommon 
beyond those typical for administrative processing in a 
developing country. 
 
------------------------------ 
Expropriation and Compensation 
------------------------------ 
 
¶8.  Private property was nationalized throughout Mozambique 
in 1975 following independence from Portuguese colonial rule. 
 After Mozambique's turn away from socialism in the 1980s, 
citizens had a period of time to reclaim residential 
property.  The government retained commercial property, but 
later sold it off as part of its privatization efforts.  All 
but a handful of religious properties that were nationalized 
have been returned; negotiations are ongoing for the 
remaining few.  It is worth noting, however, that there is no 
private ownership of land in Mozambique; all land is owned by 
the state. 
 
¶9.  While there have been no significant cases of 
nationalization since the adoption of the 1990 Constitution, 
Mozambican law holds that "(w)hen deemed absolutely necessary 
for weighty reasons of national interest or public health and 
order, the nationalization or expropriation of goods and 
rights(shall (result in the owner being) entitled to just 
and equitable compensation." 
 
------------------ 
Dispute Settlement 
------------------ 
 
¶10.  In December 2005 the National Assembly approved major 
revisions to the commercial code - the result of a 
collaborative effort starting in 1998 between the Mozambican 
government, the private sector and donors.  The previous 
commercial code was from the colonial period, with clauses 
dating back to the 19th century, and did not provide an 
effective basis for modern commerce or resolution of 
commercial disputes.  The revised code is generally viewed as 
a very positive development.  The new Commercial Code went 
into effect July 1, 2006. 
 
¶11.  To date the judicial system has been largely ineffective 
in resolving commercial disputes.  Instead most disputes 
among Mozambican parties are either settled privately or not 
at all. 
 
¶12.  In February 1999, the National Assembly legally 
recognized Alternative Dispute Resolution, which provides for 
foreign investors to have access to arbitration.  The Center 
for Commercial Arbitration, Conciliation and Mediation 
(CACM), which is supported by USAID, offers commercial 
arbitration.  CACM has two locations - one in Maputo and a 
second in the northern city of Nampula.  CACM does not, 
however, deal directly with labor issues.  For disputes 
between international and domestic companies, the law closely 
follows UNCITRAL, the United Nations Commission of 
International Trade Law.  For domestic arbitration, the law 
is formulated to cover a wide range of potential disputes, 
including non-commercial issues.  Mozambique acceded in 
mid-1998 to the New York Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards.  For disputes between 
American and Mozambican companies where a violation of the 
nations' Bilateral Investment Treaty (BIT) is alleged, 
recourse via international ADR under the BIT may also be 
available.  Investors who feel they have a dispute covered 
under the BIT should contact the US Embassy Economic Section. 
 
---------------------------------------- 
Performance Requirements and Incentives 
---------------------------------------- 
 
¶13.  Mozambique is generally in compliance with WTO 
Trade-Related Investment Measures (TRIM) obligations.  A 
variety of tax incentives exist to encourage direct foreign 
investment, which vary according to the region of the country 
and the nature of the investment but often include a 50 to 80 
percent reduction in taxes.  After the end of the period of 
tax reductions, additional benefits, which vary according to 
the location of the investment, are available.  For example, 
special tax benefits are granted to investors for the 
rehabilitation or expansion of operations.  For a five-year 
period, an immediate 100% write-off is allowed for 
investments in new equipment and in the construction of civil 
installations and agricultural infrastructure.  Customs 
exemptions are possible for the importation of capital 
equipment and raw materials.  To qualify, a minimum 
investment of USD 50,000 and pre-approval from CPI are 
required.  The government grants special fiscal, labor and 
immigration arrangements to companies operating in designated 
Rapid Development Zones.  Rapid Development Zones include the 
whole of Niassa Province, Nacala District, Ilha de 
Mocambique, Ibo Island and the Zambezi river valley. 
Investments in these zones are exempt from import duties on 
certain goods, from real property transfer tax and are 
granted an investment tax credit equal to 20% of the total 
investment (with a right to carry forward for five years). 
There are also incentives for companies in industrial free 
zones. 
¶14.  Specific performance requirements are built into mining 
concessions and management contracts, and sometimes into the 
sale contracts of privatized entities.  Investments involving 
partnerships with the government usually include milestones 
that must be met for the investor's project to continue. 
 
¶15.  Note:  The process of obtaining a visa and related work 
permits in Mozambique is lengthy and overly bureaucratic. 
The Ministry of Labor must approve the employment of 
foreigners.  The Ministry of Interior's immigration 
department issues a DIRE (a work permit/identification card) 
once the Ministry approves the application.  Assistance 
through a local lawyer, consulting firm or an individual 
familiar with the process will facilitate obtaining necessary 
work permits. 
 
-------------------------------------------- 
Right to Private Ownership and Establishment 
-------------------------------------------- 
 
¶16.  The legal system recognizes and protects property rights 
to building and movable property.  Private ownership of land, 
however, is not allowed in Mozambique.  Instead the 
government grants land-use concessions for periods of up to 
50 years, with options to renew.  The government at times has 
granted overlapping land concessions.  Essentially, land-use 
concessions serve as proxies for land titles; however, they 
are not allowed to be used as collateral.  Land surveys are 
being carried out throughout the country to enable 
individuals to register their land concessions.  This process 
is moving slowly and will not provide any real legal 
protection to investors for some time to come.  The 
Mozambican banking community uses property other than land, 
such as cars and private houses, as collateral. 
 
------------------------------ 
Protection of Property Rights 
------------------------------ 
 
¶17.  The inefficient nature of the Mozambican judicial system 
makes protection of property rights extremely problematic. 
Pirated copies of audio, videotapes, DVDs and other goods are 
sold in Mozambique. 
 
¶18.  The National Assembly passed a copyright and related 
rights bill in 2000.  This bill, combined with the 1999 
Industrial Property Act, brought Mozambique into compliance 
with the WTO agreement on the Trade Related Aspects of 
Intellectual Property Rights (TRIPS).  The law guarantees the 
security and legal protection of industrial property rights, 
copyrights and other related rights. 
 
¶19.  Over the last three years private sector organizations 
have been working together with various government entities 
on an IPR task force team in an effort to combat intellectual 
property right infringement and related public safety issues. 
 The task force has successfully acted on IPR infringement 
issues, highlighting a successful private/public partnership. 
 
----------------------------------- 
Transparency and Regulatory System 
----------------------------------- 
 
¶20.  Investors face a myriad of requirements for permits, 
approvals and clearances, all of which take a significant 
amount of time and effort to obtain.  The difficulty of 
navigating the system creates space for corruption, and 
bribes are often requested to facilitate transactions. 
 
¶21.  Regulations in the areas of labor, health and safety and 
the environment are routinely not enforced, or are enforced 
randomly to generate revenue from fines.  In addition, civil 
servants have at times threatened to enforce antiquated 
regulations that remain on the books to obtain favors or 
bribes. 
 
¶22.  The government is aware of the problems and has launched 
a donor-funded effort to streamline procedures.  The new 
Commercial Code that went into effect July 1, 2006, is seen 
as a step forward in combating many of these issues. 
 
--------------------------------------------- ----- 
Efficient Capital Markets and Portfolio Investment 
--------------------------------------------- ----- 
 
¶23.  Mozambique has a small capital market of eleven 
commercial banks, of which four dominate the market.  The 
banks compete for important clients and deposits.  Access to 
credit for the private sector remains difficult and expensive 
) interest rates for loans generally fall between 17 and 22 
percent per year.  Access to capital in the rural areas is 
constrained by the fact that land leases cannot serve as 
collateral.  Various entities, such as the Aga Khan 
Foundation and Novo Banco, offer micro-credit financing 
programs to partially fill this need. 
 
¶24.  The Mozambican Stock Exchange, founded in October 1999, 
was started with less than USD 5 million in capitalization. 
Although a fundamental instrument for the raising of finance 
by companies, to date the exchange has only one listing 
(Cervejas de Mocambique).  In the initial stages, the main 
objective of the stock exchange will be to place on the 
market shares of the larger companies that were recently 
state-owned.  The capital base requirement for listing is USD 
1.5 million. 
 
------------------ 
Political Violence 
------------------ 
 
¶25.  There were few incidents of localized violence in the 
run-up to the 2004 general elections. In May 2004 many 
opposition parties and the ruling FRELIMO party subscribed to 
an electoral code of conduct, which was generally upheld 
during the campaign and the elections.  However supporters of 
the opposition party RENAMO complained of intimidation and 
arbitrary arrests during the December 2004 voting. 
 
¶26.  Labor unions are becoming less vocal, and lack the 
financial and institutional capacity to be very effective. 
Protests rarely turn violent.  However, on July 16, the head 
of the Mafambisse security force in Sofala province shot and 
killed striking worker Domingos Chanjane and injured two 
others. While workers participating in the strike insisted 
the perpetrator was also a member of the police, a police 
spokesman denied the claim. There were no further updates at 
year's end. As in many capital cities, crime is problematic 
in Maputo, where carjackings, muggings and home break-ins are 
commonplace.  The country experienced a sharp increase in 
crime during 2007, particularly in and around Maputo City. An 
overanxious police force responded with a strong show of 
force and often resorted to violence as a first resort. While 
such acts have been on the rise over the past few years, they 
have not reached the same proportions as in neighboring South 
Africa. 
 
---------- 
Corruption 
---------- 
 
¶27.  Corruption is a serious problem in Mozambique. 
Bribe-seeking activity by officials is common.  Senior 
officials often have conflicts of interest between their 
public roles and their private business interests.  Bribery 
is considered a criminal offense in Mozambique, and political 
declarations have been repeatedly issued denouncing corrupt 
practices and promising actions against the guilty.  Despite 
this, such actions have been extremely slow in coming. 
Investigations rarely result in convictions, unless the 
accused has relatively minor influence, and no corruption 
cases involving high-profile individuals have been brought to 
trial during the Guebuza administration. 
 
¶28.  Over the past several years the United States has been 
one of the lead donor countries in providing assistance to 
the government to fight corruption.  With US resources, the 
government set up an Anti-Corruption Unit in the Office of 
the Attorney General (renamed in 2005 the Central Office for 
the Combat of Corruption).  This body is charged with 
investigating and prosecuting corruption-related crimes. 
According to the GCCC, from January to August prosecutors 
brought charges in 13 cases of corruption. In August the 
Supreme Court refused to consider some 15 corruption cases 
brought forward by the GCCC after several judges claimed the 
GCCC lacked legal authority to prosecute. 
 
¶29.  In 2005 the government passed Decree 22/2005, which 
created provincial-level offices to combat corruption. 
Offices were opened in Beira and Nampula, and are in 
operation.  In 2006 documents authorizing the creation of two 
additional offices in Inhambane and Zambezia provinces, 
respectively, were submitted; offices will be opened once the 
Council of Ministers publishes its approval decree. 
 
¶30.  The National Assembly passed an anti-corruption bill in 
2004 that updated previous antiquated legislation.  Civil 
society (particularly the media and a few dedicated NGOs) has 
remained vocal on corruption-related issues, with some 
support from the US government.  One NGO, the Center for 
Public Integrity, continues to be active in pressuring the 
government to act against corrupt practices. 
 
¶31.  Mozambique is a signatory to the Untied Nations 
Convention Against Corruption. 
 
 
------------------------------- 
Bilateral Investment Agreements 
------------------------------- 
 
¶32.  In December 1998 Mozambique negotiated a Bilateral 
Investment Treat (BIT) with the US.  The U.S. Senate ratified 
the treaty in November 2000, followed by the Mozambican 
Council of Ministers in December 2004.  The US-Mozambique BIT 
came into effect on March 3, 2005.  In June 2005 the US and 
Mozambique signed a Trade and Investment Framework Agreement 
(TIFA) that established a Trade and Investment Council to 
discuss bilateral and multilateral trade and investment 
issues.  The Council held its first meeting in October of 
¶2006.  OPIC signed an agreement with Mozambique in 1999, 
later ratified in 2000. 
 
¶33.  Mozambique has also signed bilateral investment 
agreements with the following nations Algeria, Belgium, 
China, Cuba, Denmark, Egypt, Finland, France, Germany, 
Indonesia, Italy, Mauritius, The Netherlands, Portugal, South 
Africa, Sweden, Switzerland, The United Kingdom, and 
Zimbabwe. 
 
¶34.  South Africa is Mozambique's biggest trading partner and 
the largest cumulative source of foreign direct investment 
(FDI).  Since 1995 Mozambique has engaged in regular 
discussions with South Africa to harmonize trade regulations 
and facilitate cross-border trade and investment.  Other 
countries with significant investment in Mozambique include 
the United Kingdom, India, China and Portugal.  The United 
States is a relatively minor trading partner, but was the 
largest source of FDI in 2007. 
 
-------------------------------------------- 
OPIC and Other Investment Insurance Programs 
-------------------------------------------- 
 
¶35.  The Overseas Private Investment Corporation (OPIC) has 
provided financing to two ongoing projects in Mozambique ) 
private investment in and management of transportation 
services along the Nacala corridor (port and railway) and 
tourism development on the coast. 
 
¶36.  Mozambique is a member of the Multilateral Investment 
Guarantee Agency (MIGA), part of the World Bank Group. 
 
----- 
Labor 
----- 
 
¶37.  The estimated work force is approximately nine million, 
out of a total population of 20 million.  However, only 
approximately 16.4% are in salaried positions.  In 2007 the 
government increased the country's minimum wage by 13% in the 
industry and services sectors and by 11.5% in the agriculture 
sector, making the new minimum wage for industry and services 
approximately USD 58 a month and the minimum wage for 
agricultural workers approximately USD 40 a month.  These 
increases were slightly above reported inflation.  This 
minimum wage applies only to those working in the formal 
sector; those working in the informal sector may earn 
significantly less.  Many people work several jobs to earn a 
sufficient income and often grow corn and vegetables on a 
small plot of land for personal consumption.  Approximately 
80% of the labor force works in agriculture, 6% in industry 
and 13% in services.  Current estimates place nationwide 
adult literacy levels at under 50%, with most of the literate 
Mozambicans living in urban centers. 
 
¶38.  Although the contracting of Mozambican workers is 
unrestricted, contracting of foreign workers by national or 
foreign entities, including administrators and 
representatives of foreign companies, is subject to the 
authorization of the Ministry of Labor.  Foreign workers must 
possess professional qualifications and may only be 
contracted where there are no Mozambicans with such 
qualifications or their number is insufficient.  All 
investments must specify in the investment project proposal 
the number and category of Mozambican and foreign workers to 
be employed. 
 
¶39.  The establishment of wages and other forms of 
compensation to be paid to the employee are not subject to 
control.  However, the labor legislation provides for a 
minimum wage of USD 50 per month for employees in the 
commercial, industrial and other sectors. 
 
¶40.  Labor unions created during the socialist years of the 
1970s and 1980s remain weak and are disengaging themselves 
from the ruling party, FRELIMO.  Total membership among 
Mozambique's fourteen unions is close to 200,000 persons. 
Labor unions are exerting pressure on the government to 
maintain extremely pro-worker provisions in labor 
legislation, although they are showing flexibility on major 
issues.  The minimum wage, decided every year, remains a 
major concern for the unions.  Potential investors should be 
aware that severance payments and other benefits can be 
costly.  Despite the introduction of a new labor law in 2007, 
the labor market remains rigid and an impediment to business. 
 
 
¶41.  Mozambique is a signatory to the International Core 
Labor Standards. 
 
------------------------------------ 
Foreign-Trade Zones/Free Trade Zones 
------------------------------------ 
 
¶42.  The government issued Decree No. 61/99 on September 21, 
1999, establishing industrial free zones (export processing 
zones).  The decree set up an Industrial Free Zone Council, 
which approves companies as industrial free zone enterprises, 
thereby providing them customs and tax exemptions and 
benefits.  There are three essential requirements for 
Industrial Free Zone status:  job creation for Mozambican 
nationals, the exportation of at least 85% of annual 
production, and a minimum investment of USD 50,000.  The 
decision to grant Industrial Free Zone status lies with the 
Mozambican Council of Ministers and is conditional on the 
proposal creating 500 permanent positions for Mozambican 
employees, of which each company operating with the 
Industrial Free Zone must employ at least 20 of these 
employees. 
 
¶43.  Industrial Free Zone developers enjoy an exemption from 
customs duties, VAT and tax on the importation of 
construction materials, machinery, equipment, accessories, 
accompanying spare parts and other goods destined for the 
establishment and operation of the Industrial Free Zone.  The 
processing of cashew nuts, fish and prawns are not acceptable 
industrial free zone activities.  Free zone concessions are 
granted for a renewable period of 50 years.  Mozambique's 
large export-oriented investment projects of recent years, 
such as MOZAL and SASOL, operate as industrial free zones. 
There is no requirement for free zone companies to be located 
at specific sites. 
 
¶44.  In addition, Special Economic Zones can be established 
on a case-by-case basis with the objective of developing 
specific geographical areas that benefit from exemption from 
custom duties and taxes, a free "off-shore" type foreign 
exchange regime and special labor and immigration regimes.  A 
special tax and custom regime has been created for the 
Zambezi Valley until 2025. 
 
------------------------------------ 
Foreign Direct Investment Statistics 
------------------------------------ 
 
¶45.  Historical Data: The government established the 
Investment Promotion Center (CPI) in 1985.  From January 1, 
1990 through December 31, 2007 CPI approved a total of 2,436 
projects (both foreign and national), involving over USD 5.5 
billion in foreign direct investment in 2007 alone.  Some of 
these approved projects turned out to be smaller than planned 
or not implemented at all, however.  Approved projects do not 
represent the actual FDI for any given year for this reason. 
 
¶46.  In 2007 the top ten sources of foreign direct investment 
were the United States, Switzerland, Mauritius, South Africa, 
the United Kingdom, China, Portugal, Tanzania, Spain, and 
Canada. 
 
¶47.  The following chart displays foreign direct investment 
approved by the CPI in Mozambique over the last 17 years. 
Most of the investment has been in the south, in and around 
the capital city, Maputo. 
 
Year  Projects          FDI $ mil 
1990  31                20 
1991  25                21 
1992  27                77 
1993  29                46 
1994  123               136 
1995  166               60 
1996  270               97 
1997  184               558 
1998  209               207 
1999  235               101 
2000  179               239 
2001  129               528 
2002  128               559 
2003  112               122 
 
2004  105               122 
2005  139               165 
2006  157               162 
2007  186               550 
 
------------------------------- 
2007 Foreign Direct Investment 
------------------------------- 
 
¶48.  In 2007 CPI approved a total of 186 projects, with a FDI 
value of just over USD 5.5 billion.  It is estimated that 
these approved projects, along with locally sourced direct 
investment projects, will create over 19,633 jobs.  Of this 
amount, U.S. FDI amounted to just over USD 5 billion (for 
five projects).  The majority of U.S. investment is in the 
extractive industries and agriculture.  The breakdown of all 
projects approved in 2007 (foreign and national) by sector is 
as follows: 
 
Sector            # of Projects           FDI $ mil 
 
Industry          64                192.7 
Mining/Energy     5                 5.017.0 
Agriculture &     16                52.8 
Agro-Industry 
Banking/Insur.    3                 1.0 
Tourism/Hotels    46                138.0 
Transport/Comm.   3                 25.6 
Construction      3                 11.4 
Aquaculture/      22                53.6 
Fishing 
 
Total                   186               5501.8 
 
¶49.  The following chart shows 2007 CPI-approved foreign 
direct investment by province, as well as the estimated 
number of jobs that will be created by the all approved 
projects (foreign and national), when implemented. 
 
Province          # of Projects     FDI $ mil.  Jobs (est.) 
 
Maputo                  77                286.6       9.284 
Gaza              17                92.9              693 
Nampula           12                5.017.0           1.440 
Sofala                  14                6.6 
3.952 
Zambezia          6                 2.2               758 
Inhambane         29                48.4              1.105 
Cabo Delgado      6                 706.5       77 
Manica                  16                8.4 
1.938 
Tete              7                 199.4       343 
Niassa                  2                 150.0       43 
Total                   186               5501.8 
19,633 
 
 
--------------------------------------- 
Foreign Direct Investment In Mozambique 
--------------------------------------- 
 
¶50.  Several U.S. companies have investments in Mozambique. 
In 1996 Seaboard Corporation (Kansas) purchased a state-owned 
flour mill in Beira through the country's privatization of 
the state firm, Mobeira.  The South African Bottling Company 
(SABCO), which is partly owned by Coca-Cola, owns Coca-Cola 
bottling plants in Maputo, Chimoio, and Nampula.  In 
addition, in early 2005 U.S. firms Railroad Development 
Corporation (RDC) and Edlow Resources (ERL), together with a 
local firm, Manica Freight, won majority shareholder control 
of the Nacala Corridor Concession Group and assumed ownership 
and management of the Nacala port and railway network. 
Chiquita Banana is cooperating on a project  to  export 
bananas from Mozambique.  There is an American interest in 
Indian Ocean Aquaculture, a shrimp farm project in Cabo 
Delgado province. 
 
¶51.  Universal Leaf invested USD 55 million in a tobacco 
processing plant in the northern province of Tete through its 
Mozambican subsidiary, Mozambican Leaf Tobacco.  The 
processing plant began operation in 2006.  Dunavant 
Enterprises, Inc. also has significant investments in 
Mozambique and is the main purchaser of Mozambican cotton. 
 
¶52.  American Metals and Coal International has a 5% holding 
in a giant coal concession in Moatize, Tete province, with 
95% owned by the Brazilian firm Companhia Vale do Rio Doce. 
CVRD recently completed the financial and technical 
feasibility studies for the Moatize coal project and related 
thermal power plant, and has invested USD 80 million to date. 
 A final decision whether to proceed with the project is 
anticipated in 2007. 
 
 
¶53.  In 2006 Anadarko Petroleum Company (Anadarko) won a 
tender to explore for oil and gas in the Rovuma basin off 
Mozambique's northernmost province, Cabo Delgado.  Anadarko 
signed its concession agreement with Mozambique in December 
¶2006. 
 
¶54.  The U.S. Embassy in Maputo, Mozambique is able to 
provide a comprehensive list of U.S. investments in 
Mozambique upon request. 
Chapman