General Trade
Background
Mozambique is a net importer of consumer goods. Most consumable items are imported from South Africa by wholesalers and then sold on to retailers. The general trade structure in Mozambique varies and is largely dependent on where and how the buyer prefers to shop.
It is quite typical for the average Mozambican to buy non-perishable items such as soap from a corner shop but buy fresh goods from a local wholesale market. This is different from the scenario found in other countries in which the shopper for the sake of convenience will buy all the goods from the same source.
In most cases, the effect of importing is the same since the goods are subject to a variety of taxes which makes the final cost much higher for the buyer and susceptible to currency fluctuations. Ineffective and lax controls of imported products also mean local manufacturers cannot compete on quality and price.
Development Challenges
While the growth in the banking sector is highly lucrative and second only to the extractive industry, the following challenges still need to be overcome:
Tax Insights
By way of comparison to other industries in Mozambique, agriculture is suitably better positioned for attracting investments and should do well. In practice the following factors, both favorable and unfavorable exist: