Positioning of Mozambique in the International Trade
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REPUBLIC OF MOZAMBIQUE MINISTRY OF INDUSTRY AND COMMERCE POSITIONING OF MOZAMBIQUE IN THE INTERNATIONAL TRADE Trade Flows in Mozambique: Trends and Policy Measures 2016 Edition REPUBLIC OF MOZAMBIQUE MINISTRY OF INDUSTRY AND COMMERCE POSITIONING OF MOZAMBIQUE IN THE INTERNATIONAL TRADE Trade Flows in Mozambique: Trends and Policy Measures 2016 Edition TECHNICAL NOTE Foreword TITLE: Positioning of Mozambique in the International Trade REVIEW: Sabado Matsolo, Cláudia Langa, José Leonardo, Agonias Macia, Calado Silva, This report seeks to analyse the position of Mozambique in the international trade in the period of 2010-2015 vis- Samuel Zita, Masaki Mifune and John Barns. à-vis relations with principal trade partners. This analysis essentially systematizes the information signalling the status of various socio-economic factors which are infl uencing the performance of economy. PRODUCTION: Ministério da Indústria e Comércio (MIC) Mozambique’s trade fl ows, especially the value and volume of imports and exports, are important data to un- Direcção de Planifi cação e Estudos – Cláudia Correia Langa e José Leonardo derstand the situation of Mozambique in the international trade, and to take corrective measures to the coun- Direcção Nacional Comércio Interno – Isabel Simango try’s less favourable position, as well as to extract the maximum benefi ts granted by the facilities resulting from Enhanced Integrated Framework (EIF) – Herlander Namuiche, Samuel Zita the implementation of the various trade agreements of which the country is a signatory. United Nations Development Programme (UNDP) – Masaki Mifune With the modifi cation of the structure of traditional export products (as fi sheries and primary agriculture products LAYOUT: reduced its proportion in the exports structure), the country should explore new opportunities in the international Elografi co trade, increasing the value of primary products, and the opportunities which are emerging in competitive markets for minerals and hydrocarbons. EDITION: 1st Edition 2016 There is a need to explore all the avenues offered by the greater openness of international trade, the global population increase, as well as the dynamics in the indicators of the ease of doing business, par ticularly in PRINTING the regional markets, in the context of the profi le of the least developed countries that Mozambique is part of. 500 copies The challenge is to orient the government to defi ne trade policies, to benefi t more from trade opportunities in regional and international markets with the aim of improving the balance of payment, and creating new PUBLISHED BY: jobs and using trade as a tool for reducing poverty. We would like to express our appreciation to the United Nations Development Programme (UNDP), for its assistance to the Ministry of Industry and Commerce (MIC) in the elaboration of this report. This support was provided through capacity building for statistical data collection and analysis related to international trade. REPUBLIC OF MOZAMBIQUE We look forward to continuing to engage with UNDP in the future on trade related matters that will enable MINISTRY OF INDUSTRY AND COMMERCE us to make informed decisions that help the country to use trade as an additional tool in economic growth Praca 25 de Junho, n° 300 and development. Tel: +258 21 320401 www.mic.gov.mz WITH SUPPORT FROM: Maputo, 12th December 2016 Minister of Industry and Commerce Ernesto Max Tonela UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) Av. Kenneth Kaunda 921/931, P.O Box 4595 www.undp.org Positioning of Mozambique in the International Trade 2016 iii TECHNICAL NOTE Foreword TITLE: Positioning of Mozambique in the International Trade REVIEW: Sabado Matsolo, Cláudia Langa, José Leonardo, Agonias Macia, Calado Silva, This report seeks to analyse the position of Mozambique in the international trade in the period of 2010-2015 vis- Samuel Zita, Masaki Mifune and John Barns. à-vis relations with principal trade partners. This analysis essentially systematizes the information signalling the status of various socio-economic factors which are infl uencing the performance of economy. PRODUCTION: Ministério da Indústria e Comércio (MIC) Mozambique’s trade fl ows, especially the value and volume of imports and exports, are important data to un- Direcção de Planifi cação e Estudos – Cláudia Correia Langa e José Leonardo derstand the situation of Mozambique in the international trade, and to take corrective measures to the coun- Direcção Nacional Comércio Interno – Isabel Simango try’s less favourable position, as well as to extract the maximum benefi ts granted by the facilities resulting from Enhanced Integrated Framework (EIF) – Herlander Namuiche, Samuel Zita the implementation of the various trade agreements of which the country is a signatory. United Nations Development Programme (UNDP) – Masaki Mifune With the modifi cation of the structure of traditional export products (as fi sheries and primary agriculture products LAYOUT: reduced its proportion in the exports structure), the country should explore new opportunities in the international Elografi co trade, increasing the value of primary products, and the opportunities which are emerging in competitive markets for minerals and hydrocarbons. EDITION: 1st Edition 2016 There is a need to explore all the avenues offered by the greater openness of international trade, the global population increase, as well as the dynamics in the indicators of the ease of doing business, par ticularly in PRINTING the regional markets, in the context of the profi le of the least developed countries that Mozambique is part of. 500 copies The challenge is to orient the government to defi ne trade policies, to benefi t more from trade opportunities in regional and international markets with the aim of improving the balance of payment, and creating new PUBLISHED BY: jobs and using trade as a tool for reducing poverty. We would like to express our appreciation to the United Nations Development Programme (UNDP), for its assistance to the Ministry of Industry and Commerce (MIC) in the elaboration of this report. This support was provided through capacity building for statistical data collection and analysis related to international trade. REPUBLIC OF MOZAMBIQUE We look forward to continuing to engage with UNDP in the future on trade related matters that will enable MINISTRY OF INDUSTRY AND COMMERCE us to make informed decisions that help the country to use trade as an additional tool in economic growth Praca 25 de Junho, n° 300 and development. Tel: +258 21 320401 www.mic.gov.mz WITH SUPPORT FROM: Maputo, 12th December 2016 Minister of Industry and Commerce Ernesto Max Tonela UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP) Av. Kenneth Kaunda 921/931, P.O Box 4595 www.undp.org Positioning of Mozambique in the International Trade 2016 iii Contents Abbreviations . viii Executive Summary. ix Chapter I. Overview of Trade Trends in Mozambique . 1 1.1 The Landscape of Trade in Mozambique . 1 1.2 Trade Partners in Mozambique . 4 Chapter II. Trend Analysis of Trade Products in Mozambique . 5 2.1 Trade Products Portfolio. 5 2.2 Main Cash Crops and Foods Exports . 7 2.3 Main Food Imports . 21 Chapter III. Global & Regional Trends . 27 3.1 Demographic Trends and Food Security . 27 3.2 Demographic Trends and Socio-Economic Structure. 29 3.3 Energy Demand and Industrialization. 33 3.4 SDGs and Trade. 38 Chapter IV. Policy and Institutional Framework for Trade in Mozambique . 40 4.1 Policy and Institutional Framework in the Trade Sector . 40 4.2 International Trade Agreements . 44 4.3 Business Environment in Mozambique . 47 Reference . 50 Figures Figure 1.1: Degree of trade openness 2000-2014 . 2 Figure 1.2: Current account, trade and FDI fl ow in Mozambique 2010-2014 . 2 Figure 1.3: Principal trade products exported from Mozambique 2000 and 2015. 3 Figure 1.4: Commodity price trend (Index, 2005=100). 3 Figure 2.1: Megaproject/extractive industry export value 2000-2015 (selected prducts) . 6 Figure 2.2: Cash crops and foods exports value 2000-2015 (selected products) . 6 Figure 2.3: Exports destinations by product (2011-2015 avg.). 7 Figure 2.4 Mozambique cashew nuts exports and global trends . 8 Figure 2.5: Mozambique cashew nuts export destinations. 9 Figure 2.6: Mozambique sesame exports and global trends . 10 Figure 2.7: Mozambique sesame export destinations . 10 Figure 2.8: Mozambique almonds exports and global trends . 12 Figure 2.9: Mozambique almonds export destinations. 12 Figure 2.10: Mozambique cotton exports and global trends . 14 Figure 2.11: Mozambique cotton export destinations . 14 Positioning of Mozambique in the International Trade 2016 v Contents Abbreviations . viii Executive Summary. ix Chapter I. Overview of Trade Trends in Mozambique . 1 1.1 The Landscape of Trade in Mozambique . 1 1.2 Trade Partners in Mozambique . 4 Chapter II. Trend Analysis of Trade Products in Mozambique . 5 2.1 Trade Products Portfolio. 5 2.2 Main Cash Crops and Foods Exports . 7 2.3 Main Food Imports . 21 Chapter III. Global & Regional Trends . 27 3.1 Demographic Trends and Food Security . 27 3.2 Demographic Trends and Socio-Economic Structure. 29 3.3 Energy Demand and Industrialization. 33 3.4 SDGs and Trade. 38 Chapter IV. Policy and Institutional Framework for Trade in Mozambique . 40 4.1 Policy and Institutional Framework in the Trade Sector . 40 4.2 International Trade Agreements . 44 4.3 Business Environment in Mozambique . 47 Reference. 50 Figures Figure 1.1: Degree of trade openness 2000-2014 . 2 Figure 1.2: Current account, trade and FDI fl ow in Mozambique 2010-2014 . 2 Figure 1.3: Principal trade products exported from Mozambique 2000 and 2015. 3 Figure 1.4: Commodity price trend (Index, 2005=100). 3 Figure 2.1: Megaproject/extractive industry export value 2000-2015 (selected prducts) . 6 Figure 2.2: Cash crops and foods exports value 2000-2015 (selected products) . 6 Figure 2.3: Exports destinations by product (2011-2015 avg.). 7 Figure 2.4 Mozambique cashew nuts exports and global trends .