Paulo Jorge Chibanga, Member of the Board of Directors of the Industrial Association of Mozambique (AIMO), in an interview with Profile, gave an overview of the sector in the country, stressing that one of the main difficulties at the moment is the increase in the price of production factors. However, Chibanga assures us that although businesspeople are concerned about the situation, “they are actively working to create solutions”. He also leaves a challenge: “we are involved in the expansion of industrial parks across the country”.
Profile Mozambique: What is the Industrial Association of Mozambique and why is it so important?
Paulo Chibanga: Founded in 1989, the Industrial Association of Mozambique – AIMO is an association created by entrepreneurs with the aim of representing the industrial sector in Mozambique and establishing an environment conducive to the development of the ecosystem. The association’s relevance is based on its ability to influence and improve its industrial competitiveness, both domestically and internationally, as well as assuming the role of the sector’s main interlocutor with the government.
PM: Looking back over the last year, what were the most obvious challenges facing the institution and what measures were taken to overcome them?
PC: In its entirety, the greatest difficulty is related to financing the industry as a whole, since this notorious complexity creates situations where products become more expensive. From another point of view, it is clear that the entire value chain needs to be created in order to place products on the market, not only on the domestic market, but also on the international market, with the capacity to compete at various levels, both in terms of presentation and in terms of brand and quality, with other products that are imported into Mozambique, so that Mozambique also has its own products on display and for sale.
Profile Mozambique: Let’s talk about the main events that positively impacted AIMO and contributed to its growth during 2023.
PC: With regard to 2023, allow me to stress that it was a year of great achievements from an economic point of view. I can list a few achievements that contributed significantly to our growth: (i) participation in the 58th edition of FACIM 2023 at the Ricatla International Fair and Exhibition Centre in the Marracuene District under the slogan “Industrialization: Innovation, Diversification of the national economy”, (ii) the creation of the industrial magazine (MOZINDUS) to promote the products and achievements of national industries, (iii) the creation of the Industrial Development Agency (ADI), as part of the Integrated Program for Industrial Development, in order to target support to companies in the national production sector in the context of training in various aspects of the management of production processes, (iv) participation in the exhibition of industrial opportunities, (iv) taking part in the exhibition of industrial opportunities, panel discussions and B2B, at the Global Gateway Mozambique-European Union Investment Forum, held on 22 and 23 November, which brought together European companies that invest or are interested in investing in Mozambique, European Union representations, the Mozambican government and private sector, (v) taking part in the Business Conference – Renewables in Mozambique, organized by AMER and ALER, with the aim of creating opportunities for the Mozambican business community.
PM: In any case, AIM has its own vision of the state of the national economy. What are the main differences between the government’s economic program and AIMO’s vision?
PC: Our action focuses exclusively on lobbying and advocacy in the industrial sector, and we are a valid interlocutor in consultation and articulation with the government on matters relating to regulatory policies and incentives in the environmental, tax, customs and other areas concerning Mozambican industries, proposing measures and programs and participating in their preparation, implementation and monitoring. In other words, AIMO has worked closely with the government to represent the interests of its members. However, it is important to recognize that part of the main differences between the government’s economic programme and AIMO’s vision lies in the investment priorities within the sector’s action plan.
MP: What is the “appetite” of foreign investors and companies for the Mozambican market? Please give concrete examples of existing investments/business transactions.
PC: Looking particularly at the industrial sector, I can highlight some areas of major investment at the moment, such as: (i) Renewable energy, (ii) Mining, (iii) Oil and Gas, (iv) Transportation and logistics, among other potential areas.
In terms of concrete investments, there are several:
(i) TAITRA – which is Taiwan’s leading trade promotion organization and well-coordinated information network to help companies connect to the global market. TAITRA/TTC’s main services in Maputo: (i) Brand Marketing, (ii) Market Research and Publication, (iii) Trade Fairs and Conventions, (iv) Online Business Service, (vi) International Marketing and (vii) Business Education.
(ii) AFRICA TRADE + INVESTMENT PROGRAM – an American fund created to support the export of products from developing countries to the American market. To this end, they hire export development agencies and prepare companies to export to the United States of America. Main services provided: (i) Trade promotion, (ii) Export facilitation agreement, (iii) Finding suppliers capable of exporting in the quantity and quality specified. However, it is important to note that this fund is implemented in 9 countries in Southern Africa, except Zimbabwe and Tanzania.
(iii) Training and certification program for exporting products to the international market This is a training program for companies on export procedures at the Southern African level and a quality management system based on the international reference standard ISO 9001. This program was designed by AIMO together with Growth-In Lda, with Trade Forward Southern Africa (TFSA) – UK as a partner and funder. The program aims to raise the awareness of AIMO members and stakeholders in increasing export opportunities for national products as well as in the application of quality requirements for international certification. Activities will include: (i) the identification of certifiable products with export potential in the value chain and existing national and international standards, (ii) instruction in the procedures for obtaining certification, (iii) identification of procedures and tools for developing a Quality Management System based on the ISO 9001 Standard and (iv) conducting training sessions in relation to exports and certification of systems and products.
PM: What can be done to increase investments and transactions? And which sectors are of most interest and why?
PC: To increase investments and transactions, as a suggestion, some strategies could include improving the business environment, promoting public-private partnerships, diversifying the economy, and implementing tax incentives. The sectors of greatest interest could include energy, agribusiness, infrastructure, tourism and technology due to their growth potential and economic impact.
MP: How would you characterize the current state of national production?
PC: The current state of national production is increasingly characterized by diversification in sectors such as agriculture, industry, energy and services, as well as challenges related to productivity, infrastructure and access to markets.
PM: How is AIMO represented at provincial level?
PC: We are represented through our members throughout the national territory, but also, we are involved in the expansion of Industrial Parks throughout the country, which will strategically strengthen our presence.
PM: Finally, what are AIMO’s main goals and priorities for 2024?
PC: To ensure that there is funding for the industrial sector, to create programs aimed at attracting investment to the national industry and to invest more and more in holding fairs that allow for greater industrial exposure.
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