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Foreign Investment in Mozambique Real Estate

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Investing in Mozambique can be a tricky proposition as the country has so many infrastructure problems. The main types of investment tend to be tourism related and only in certain areas, which due to demand means the prices have the potential to be inflated. Of course for the right type of investor who is willing to put in lots of effort, then opportunity can be found in many parts of the country. Bear in mind though that Mozambican law prohibits you from owning land and that you only actually possess the structure.

Popular urban investment areas

With a drastic different between urban and rural, many investors are looking to put their money into the cities. These areas’ tend to be slightly better off than the rural areas and are therefore imminently more attractive. Of course the country doesn’t have many large urban areas but the ones worth considering are:

  • Maputo. The capital of Mozambique, Maputo is situated in the south of the country on the Indian Ocean. The capital is literally the economic driver of Mozambique and as such the government has been doing a lot of work to overhaul the infrastructure. With ongoing development, a busy port and people constantly looking for new opportunities in the city makes this a place that is quite attractive to foreign investors.
  • Beira. Lying in the center of the coastal part of Mozambique, Beira is another city that is growing relatively quickly. Currently it is the 2nd largest city in the country and has a strategically important port. This is a great place for potential investment as it is one of the most frequently used ports for transporting goods from Malawi, Zambia and Zimbabwe. The area does also have tourism potential but to date this has not been exploited much.
  • Inhambane. Another coastal town, this small sleepy place is situated in the south of the country. Well known as a good tourist destination, this particular town offers investment opportunities for tourism related activities. Close proximity to Maputo and South Africa make this a good location as well as the fact that it is very closely situated to Bazaruto National Sea Park.

Rural areas

The rural parts of Mozambique are quite different from the urban areas, with some of the more remote parts not benefiting from electricity or even proper sanitation. This does mean that the investment opportunities are somewhat more limited. Of interest though is the governments drive to repair the damage done to the ecology with the hopes of making Mozambique into a more attractive tourist destination. This does pose potential investment opportunities for game farms and other wildlife tourism related endeavors as these normally take some time to get established.

Otherwise the coastal rural areas are at times popular for various sporting activities such as fishing, surfing or diving. This does mean that with the right approach and some careful investigation that good investments are still to be found, however a thorough check of the local area is highly recommended to ensure that your money is well spent.

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