Mozambique Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in mozambique, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Overview

The franchise sector in Mozambique is relatively underdeveloped compared to most countries, but it has undergone steady growth in recent years. Besides U.S. brands like KFC, Truly Nolen, Ford, Coca-Cola, and Radisson Blu Group, much of the franchise sector in Mozambique is dominated by South African and Portuguese brands due to geographic proximity and shared language and culture, respectively.

Franchising in Mozambique is underserved, as more Mozambicans seek an alternative to building a business model and brand from scratch. Although the sector was severely damaged by the pandemic (COVID-19) it is slowly recovering. The franchising sector in the country is mainly composed of international brands in restaurants, hotel chains, supermarkets, auto vehicles parts, and clothing stores.

Regulatory Environment

Although franchising is growing in Mozambique, it still does not have any franchise association or formal authority responsible for franchising activity. Legal protection of brands also remains weak. Franchise fees and royalty transfers may be difficult to remit due to bureaucratic processes for sending funds outside the country.

Market Entry Considerations 

The Mozambique Investment and Export Promotion Agency (Agência de Promoção de Investimentos e Exportações; APIEX) is a public institution that assists companies seeking to invest in the country. Most U.S. franchisors looking to penetrate the Mozambican market take advantage of the services offered by the U.S. Commercial Service to find the right franchisee/local partner.

Leading Subsectors

Fast-food and Restaurant

Mozambican cuisine has been deeply influenced by the Portuguese, South African, and South Asian gastronomy. International brands are high sought after with Mozambicans travelling across the border to consume franchise brands. 

Automotive Parts and Servicing

More than 65% of cars imported to Mozambique are second-hand vehicles from Asia. Automotive parts and car maintenance are growing with an increase of middle-class income and scarcity in public transportation.

Healthcare and Fitness

Investment in international health insurance and private healthcare in Mozambique is rising due to supply shortages and long queues at public hospitals. At the same time, increasing numbers of Mozambicans are seeking global cross-fitness and gym brands. 

Hospitality

Mozambique’s 1600 miles of coast boasts of world class luxury resorts, archipelagoes, and marine and reserve parks, making it a regional and international tourist destination. Almost half of the country (43%) is covered in woodland and forests. Chimanimani National Park was named by National Geographic as one of the top 25 destinations to visit in 2022.

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