Mozambique is divided into three geographic regions: North, Center, and South. Each region is served by a major port, with rail and road networks connecting to key urban centers and neighboring countries, including South Africa, Eswatini, Zimbabwe, Zambia, and Malawi. Mozambique also boasts a highway system linking all 11 provinces. However, there are no local logistics companies offering scheduled services across the entire country, although trucking companies can deliver goods on a contractual basis. Established scheduled routes primarily serve the South African and Zimbabwean markets.

Despite these transportation networks, Mozambique’s logistics infrastructure remains underdeveloped, leading to potential delays and making the sale of certain perishable goods less viable. Additionally, the informal market is widespread, with people often engaging in cross-border trade to take advantage of arbitrage opportunities, complicating efforts for American companies to establish legitimate in-country sales channels.

Using an Agent or Distributor

In Mozambique, foreign companies often collaborate with local agents or distributors to navigate regulatory requirements and overcome initial market barriers. These local partners play a key role in helping companies comply with local content regulations, particularly when bidding for public sector tenders. Some U.S. firms also reach the Mozambican market indirectly through regional distributors based in South Africa. However, the number of agents with access to distribution channels across the country is limited, largely due to the country’s underdeveloped infrastructure.

Many tenders, especially those from the public sector, require foreign companies to partner with local agents or distributors in order to meet local content requirements, which can simplify the submission process. It’s important to note that business transactions in Mozambique often involve politically exposed persons (PEPs). Therefore, U.S. companies should exercise caution and conduct thorough due diligence on local partners before entering into reseller or distribution agreements.

For assistance in identifying potential agents or distributors, U.S. companies can reach out to the U.S. Commercial Service or the American Chamber of Commerce in Mozambique.

Establishing an Office

Establishing a legal entity in Mozambique offers several company structure options, but the process can be complex. The most commonly used structure is the Sociedades por Quotas de Responsabilidade Limitada (Ltda), which is similar to a limited liability company (LLC) in the United States. However, selecting the right legal structure for a business depends on various factors, and it’s advisable to consult with a local legal services provider for guidance.

U.S. companies planning to enter the Mozambican market should contact the Agência de Promoção de Investimentos e Exportações (APIEX), the government agency responsible for promoting investment and exports. Alternatively, a local consultancy firm can assist with startup procedures, including registration, permits, and compliance with local regulations. 

For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of State’s Investment Climate Statements website. 

Franchising

Franchising in Mozambique is still in its early stages, but growing interest is emerging, driven by the expansion of a middle class with disposable income, particularly in urban centers like Maputo, Beira, Nampula, and Tete. As the demand for foreign goods and services increases, franchising offers opportunities for both local and international businesses. However, the concept of franchising is relatively new in Mozambique, and there is currently no formal franchise association or governing body overseeing franchise operations.

Legal protection for brands remains limited, and challenges exist when it comes to franchise fees and royalty transfers. Bureaucratic hurdles in the financial system can make it difficult to remit funds abroad, adding complexity to the franchise business model. Despite these challenges, the potential for franchising is growing as Mozambique’s consumer market continues to expand.

Direct Marketing

Direct marketing is a growing trend in Mozambique, fueled by the rise of smartphones and increased exposure to social media. Many companies are increasingly using email campaigns, websites, and online ads to target clients directly.

However, internet access remains limited for a large portion of the population, particularly in rural areas, and many people are unfamiliar with direct marketing methods. That said, internet penetration is notably higher among the emerging middle class, with smartphone usage playing a significant role in this trend. Mobile applications and SMS messaging have become common and effective tools for reaching customers, especially those in more remote locations.

While door-to-door sales are rare due to safety concerns and challenges in accessing non-metropolitan areas, digital marketing and mobile-based campaigns are gaining traction as viable alternatives for reaching potential customers across the country.

Joint Ventures/Licensing

The Government of Mozambique encourages joint ventures with local companies to foster entrepreneurship and economic development. While there is no legal mandate to partner with a Mozambican entity when establishing a business, such partnerships are often required when bidding for national projects or concessions, particularly those involving state-owned enterprises. Partnering with a local company can help U.S. firms navigate local content regulations and improve their chances of success when competing for government contracts.

Express Delivery

Express delivery from major U.S. cities to Mozambique typically takes between 2 to 10 days. Imported goods are subject to customs tariffs based on their purchase price and product category. For detailed information on customs tariffs, U.S. companies can visit the website of the Autoridade Tributária de Moçambique (AT).

Due Diligence

Companies should perform appropriate due diligence on their business partners and agents before entering any formal agreements. The U.S. Commercial Service’s International Company Profile can help address these due diligence