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The Construction Industry in Mozambique
BY Carole Veitch
Mozambique
10 August 2017
R 14 400.00 (ZAR)  
estimated $ 1 127.52 (USD) *
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The Construction Industry in Mozambique


Although small and underdeveloped by global standards, the Mozambican construction industry plays a pivotal role in all sectors of the local economy and is one of the main drivers of socio-economic development and job creation. During the past decade, the expansion of the local construction industry has been driven by unprecedented infrastructure development. However, the disclosure, in April 2016, of hidden government-guaranteed loans amounting to around US$2bn plunged Mozambique’s economy into crisis, causing the growth trajectory of the country’s construction industry to slow to 6.7% in 2016. Despite this setback, analysts predict that infrastructure spend will rally, rising to around US$6bn per annum by 2025 as new mega-projects break ground.


Challenges and Opportunities


Infrastructure development in Mozambique has been undermined by long-standing political hostilities that date back to the Mozambican civil war of 1976-1992. In May 2017, Afonso Dhlakama, the leader of rebel movement Renamo, announced that he was prepared to extend a conditional ceasefire for an indefinite period. Greater political stability in Mozambique is expected to significantly boost investor confidence. The debt-distressed nation has also been buoyed by the recent signing of the US$8bn Coral South Offshore Floating Liquefied Natural Gas (FLNG) Project, which positions the country to become the world’s fourth-largest exporter of Liquefied Natural Gas (LNG) by 2022. The mega-project, which is the first ultra-deep offshore FLNG project ever to be undertaken in the world, is one of several high-value projects that offer significant opportunities for the construction industry.


Report Coverage


This report examines current conditions in the Mozambican construction industry, as well as recent developments and factors influencing the success of the industry. It identifies construction opportunities in all sectors of the Mozambican market and also provides an overview of regulations and government policies pertaining to construction and infrastructure development. The report profiles 29 notable construction companies operating in the Mozambican market. These include the established players Mota-Engil Mozambique Lda, which is a wholly-owned subsidiary of Euronext Lisbon-listed Mota-Engil SGPS, NCC Mocambique Lda, Cmc Africa Austral Lda, and the indigenous civil engineering and construction company, Ceta Construções e Serviços, as well as the American contractor, Chicago Bridge & Iron (CB&I), the Italian firm, Saipem and the Japanese company, Chiyoda, which have been contracted to undertake major construction projects in the burgeoning energy sector.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 16
4.1. Local 16
4.1.1. Corporate Actions 27
4.1.2. Regulations and Government Policies 27
4.2. Continental 29
4.3. International 33
5. INFLUENCING FACTORS 35
5.1. Economic Environment 35
5.2. Socio-Political and Socio-Economic Environment 38
5.3. Infrastructure Deficit 39
5.3.1. Government Infrastructure Programme Spend 39
5.3.2. Foreign Direct Investment (FDI) 40
5.3.3. Private Sector Investment 40
5.3.4. Public-Private Partnerships (PPPs) 40
5.4. Urbanisation 41
5.5. Local Content 41
5.6. Corruption 42
5.7. Construction Equipment and Materials: Capacity, Quality and Security of Supply 42
5.8. Input Costs 43
5.9. Cyclicality 43
5.10. Health and Safety Concerns 44
5.11. Technology, Research and Development (R&D) and Innovation 44
5.12. Labour 47
5.13. Environmental Concerns 49
6. COMPETITION 51
6.1. Barriers to Entry 52
6.2. Public Procurement and the Tendering Process 53
7. SWOT ANALYSIS 53
8. OUTLOOK 54
9. INDUSTRY ASSOCIATIONS 55
10. REFERENCES 55
10.1. Publications 55
10.2. Websites 57
APPENDIX 1 59
Investment Opportunities in the Mozambican Tourism Sector 59
APPENDIX 2 64
The Global Competitiveness Index 2016-2017: Mozambique 64
COMPANY PROFILES 65
AECOM 65
ANHUI FOREIGN ECONOMIC CONSTRUCTION (GROUP) CO LTD 70
AURECON MOZAMBIQUE LDA 71
AVENG MOZAMBIQUE LDA 73
BECHTEL CORPORATION 75
CAMARGO CORREA MOZAMBIQUE LDA 77
CETA CONSTRUCAO E SERVICOS SA 79
CHICAGO BRIDGE & IRON CO NV 81
CHINA ROAD & BRIDGE CORPORATION 86
CHIYODA CORPORATION 87
CLM CIVIL CONTRACTORS MOZAMBIQUE LDA 91
CMC AFRICA AUSTRAL LDA 93
CONSTRUCOES JJR & FILHOS MOZAMBIQUES LDA 95
GABRIEL COUTO MOZAMBIQUE SARL 97
INGEROP MOZAMBIQUE LDA 99
ITALIAN-THAI DEVELOPMENT PUBLIC COMPANY LTD 101
KENTZ ENGINEERS & CONSTRUCTORS LDA 106
MOTA-ENGIL ENGENHARIA E CONSTRUCAO SA 108
MURRAY AND ROBERTS HOLDINGS LTD 110
NCC MOZAMBIQUE LDA 114
ODEBRECHT SA 116
OPWAY ENGENHARIA SOCIEDADE DE CONSTRUCOES MOZAMBIQUE 119
PENTA-OCEAN CONSTRUCTION CO LTD 121
PROCONSTROI MOZAMBIQUE LDA 125
SAIPEM SPA 127
SOARES DA COSTA MOZAMBIQUE SARL 132
STEFANUTTI STOCKS MOZAMBIQUE LDA 134
VM CONSTRUCTION 136
WILSON BAYLY HOLMES-OVCON LTD 137