Helping Attract Investment in Mozambique’s Tourism Sector

 

Tourism is an important source of revenue and job creation for countries across Africa, where natural beauty is abundant but a lack of infrastructure and investment means the sector often fails to realize its full potential.

IFC has helped a number of countries in Africa build the foundation for sustainable tourism industries, including Mozambique, where we worked with the government to improve regulations relating to tourism and attract millions of dollars in investment.

Top Tourism Destinations
Boasting plentiful wildlife, a rich cultural heritage, and 2,700 kilometers of tropical coastline that feature world-class swimming, diving, and fishing opportunities, Mozambique has all the elements needed to become one of sub-Saharan Africa’s top tourism destinations.

Natural beauty alone, however, was not enough for Mozambique to attract investors prepared to create large-scale, sustainable tourism projects. Most investors were scared off by overly complicated investment procedures.

Anchor Program
In 2005, Mozambique’s Ministry of Tourism requested IFC’s support to help it improve its attractiveness to investors,

Over the past six years, IFC’s Mozambique Tourism Anchor Program worked with Mozambique’s government and a number of private sector partners to implement regulatory reforms that have improved the country’s tourism investment climate. The program also helped select, develop and promote tourism investment opportunities in specially-designated zones

The Anchor Program, which won the ‘Tourism Investment Program of the Year’ Award in 2009 and 2001 presented by Africa Investor, a leading international investment research and communications group, has helped Mozambique achieve impressive results:

Investment Generation:

 

  • Mozambique has attracted over $33 million in investment and designated over 13,000 ha of land as sustainable tourism zones. 
  • $2.5 million in investment secured for the Maputo Elephant Reserve, a partnership between a private sector investor and a local community association. This eco-lodge project should create about 50 direct jobs, and bring other tangible benefits to local communities and to the conservation management of this prime protected area.
  • $30 million tourism investment secured for the Casuarina and Epidendron Islands. The development is expected to create 650 jobs during construction.

Regulatory Reforms:

  • Approval of the Investment Law Regulation, which allows individual, integrated tourism-resort projects to apply for special economic zone status and special benefits.
  • Approval of the Tourism Interest Zones Regulations, which foresees that areas with special natural, cultural or historic characteristics can be reserved for tourism development by the State.
  • The declaration of the Inhassoro and Crusse/Jamali Anchor Sites (occupying 4500ha of pristine coastland) as the first special tourism zones in the country.
  • The creation of a new government agency, the Tourism National Institute (INATUR), in charge of tourism development and investment facilitation in the tourism zones.

 

Mozambique’s Minister of Tourism said of IFC’s support: “I would like to recognize the value of IFC’s technical assistance to the Government of Mozambique and that has contributed to improve the investment climate in the tourism sector…Furthermore, the experience gained with the Anchor Program has also helped build our investment promotion and facilitation capacity that is needed to sustain the growth and improvement of the tourism sector, considered a priority economic sector for the country”.

 

 

The program was implemented in partnership with the African Development Bank and the governments of Austria, Denmark, Ireland, Japan and the Netherlands.


For more information contact:
Kimberlee Brown
Communications Officer
Nairobi, Kenya
Phone: +254 202 759 611
Email: kbrown@ifc.org