Outline of the Project

Project Name

Project for Enhancing Capacity of Investment Promotion and Facilitation in the Republic of Mozambique

Country

Mozambique

Project Site

Mainly Maputo

Date of R/D signed

November 25, 2015

Term of Cooperation

From February 29, 2016 to April 30, 2020

Implementing Organization

Agency for Promotion of Investment and Exports (APIEX)

Project Background

Mozambique is endowed with rich natural resources such as coal, natural gas, agricultural, forestry and fishery resources and its geographical location makes the country to offer gateways to the landlocked countries for their access to Indian Ocean through several economic corridors. The country is adjacent to South Africa, a leading economy in sub-Saharan Africa. Mozambique is considered to have high potential to attract investment and to achieve economic development.

In order to promote foreign as well as domestic investment, the Government of Mozambique enacted Investment Law in 1993, and established CPI (now APIEX), targeting in particular to promote foreign investment. During late 1990s to early 2000s, Mozambique experienced expansion of large-scale resource development investment augmented by the rise in worldwide commodity prices, and the country's GDP also achieved a high growth rate of more than 7% between 2011 and 2014.

However, the GDP growth rate started to decline in 2015, dropped to 3% level, and investment activities also showed sharp reduction. Nevertheless, in 2017, there are some signs of economic recovery, for example, investment decision on off-shore natural gas development, increase in coal shipment through NACALA corridor, and aluminum utilizing low cost power supply.

The Mozambican government formulated National Strategy for Investment Promotion, namely PEPIP, in 2014, involving 14 relevant government institutions with CPI as the main promotor. PEPIP initiated in improvement of business environment and the investment promotion activities with wide government participation. In 2017, by merging the three institutions CPI, GAZEDA (Special Economic Zone Agency) and IPEX (Export Promotion Agency), APIEX was created as a new agency to promote investment and export.

This Project, started in March 2016, is designed to provide technical assistance to APIEX as the counterpart, with the aim of strengthening the capacity to further promote investment promotion and facilitation, as Technical Cooperation Project. The project is composed the following three components; 1) Investment promotion, 2) Investment facilitation, and 3) Investment promotion strategy.

Overall Goals

National and foreign direct investment is increased.

Project Purpose

APIEX's capacity for investment promotion and facilitation is enhanced.

Outputs and Activities

Output 1: APIEX's investment promotion activities are improved

Activities

1-1	The current situation of APIEX's investment promotion activities is analyzed (in terms of classification of investment promotion activities, division of responsibility among sections/staff, annual planning/monitoring of activities, concrete workflow of conducting respective activity items, etc.).
1-2	Based on the results of the analysis, problems of the current investment promotion activities are identified, and course of action is worked out for improving the activities to achieve higher investor orientedness.
1-3	Concrete actions for improving investment promotion activities are taken through daily operation and by referring to other countries7 good practices. Possible areas of actions include: Information provision for interested investors (including management of client information) Development/improvement of investment promotion materials (such as sector profile and investment guide) Organization of promotional events (such as missions and seminars) Selection of priority target market and proactive promotional activities for such market
1-4	APIEX's way of conducting promotion activities in an investor-oriented manner is established (through preparation of manuals etc.).

Output 2: Operations for investment approval, business licensing support and investment monitoring become smooth and effective.

Activities

2-1	The current situation of APIEX's operations related to investment approval, business licensing support and investment monitoring is analyzed (in terms of concrete workflow of each operation, division of responsibility among the staff of Project management Service, coordination with other organizations, etc.)
2-2	Based on the results of the analysis, problems of the operations related to investment approval, business licensing support and investment monitoring are identified, and course of action is worked out for improving the operations to achieve higher investor orientedness.
2-3	Concreate actions for improving the operations are taken referring to other countries' good practice. Possible areas of actions include: Management of investment approval: Shortening and/or simplification of approval process, information management of proposed projects Business licensing support: Compiling and publicizing licenses and application forms for such licenses) Investment monitoring: Effective communication with approved investment projects, information management of realized investment
2-4	APIEX's investor-oriented operations related to investment approval, business licensing support and investment monitoring are established (through preparation of manuals, SOP, etc.).

Output 3: PEPIP implementation is advanced through facilitation by APIEX

Activities

3-1	Relevant knowledge concerning PEPIP implementation is acquired.
3-2	Appropriate measures are taken for advancing PEPIP implementation making used of the knowledge acquired.
3-3	Appropriate support and monitoring activities, in line with investment promotion strategy for PEPIP member institutions are identified.
3-4	The activity 3-3 are taken in cooperation with those institutions.

Input

from Japanese Side:

1. Japanese Experts
   (1) Team Leader / Investment Promotion
   (2) Deputy Team Leader / Organizational Management
   (3) Investment Approval / Investment Facilitation (Legal Aspect)
   (4) Investment Approval / Investment Facilitation (Business Environment)
   (5) Investment Approval / Investment Facilitation (Procedure)
   (6) Information Management
2. Training in Japan and/or third countries for counterpart staff

from Mozambican Side:

1. Assignment of counterpart personnel
   (1) Project Director (Director General of APIEX)
   (2) Project Manager (Deputy Director General of APIEX)
   (3) Counterpart staff (APIEX staff)
2. Sustainable office space with necessary equipment (printer, copying machine, etc.)
3. Equipment and any other materials necessary for the implementation of the Project
4. Running expenses necessary for the implementation of the Project.