Mozambique Economic stimulus after COVID-19

The Mozambican government has been looking at several ways of helping its economy recover from the struggles that came with the COVID-19 pandemic such as economic stimulus in Mozambique. The country is one of the most affected economic sectors affected by the pandemic, not only in Mozambique but around the world was the tourism industry with several having to declare bankruptcy, in Mozambique we witness a shy return to occupancy in hotels with some experiencing at best 45% occupancy, nothing close to the numbers in the years before the pandemic.

The government has decided to apply strategies such as COVID crisis payment and government stimulus packages to further accelerate economic growth in the country, strategies which hopefully increase the purchasing capacity for the Mozambican citizens attract more and new investments into the country, and decrease the employment rates which are at an alarming over 35%.

President Filipe Jacinto Nyusi’s, announcement on the 09th of August, regarding the gradual decrease in the taxes such as VAT and Corporate income tax seems like a step in the right direction as with the increase in petrol prices the living cost have soured around the world including Mozambique but with a decrease from 17% to 16% on VAT and 32% to 10% on the corporate income tax. Mozambican and foreign investors can look at a promising future in the years to come.

With the help of our tax consultants, you can have a better understanding of precisely what your obligations are with the Tax authorities if ever you decide to invest in Mozambique as the opportunities are endless. There were also quite a few changes made regarding foreign investment procedures, making it even more attractive for individuals interested in investing in this part of Africa.

Our immigration specialists will also be able to assist with any process regarding your relocation to this tropical country, be it for investment a job opportunity, or even leisure, as the options for the latter, are endless. You could be one of the many investors who would help this country grow by turning your investment ideas into reality and helping this government create jobs for Mozambicans operating in different areas. And if you have any questions about economic stimulus in Mozambique, contact our team at Uniglo Financial!