Warehousing Mozambique: Benefits, insights, and key services
If a business is looking for warehousing in southern Africa, Mozambique is a strong option for expansion. This country has a fast-growing economy and provides access to major roadways throughout the southern portion of the continent, making it an attractive and strategic location for many entities. With access to quality infrastructure and vital logistics services, warehousing in Mozambique can help foster growth across international markets.
Benefits of warehousing in Mozambique
Warehousing in Mozambique delivers significant benefits to businesses, nonprofits, and other entities looking to develop a strong warehouse network. These benefits include affordable infrastructure, strategic locations, and potential for future growth.
Access to major connections
Mozambique lies on the southeast coast of Africa, bordering the countries of Zimbabwe, South Africa, Tanzania, Zambia, Malawi, and Eswatini (Swaziland). Warehousing in Mozambique provides access not only to major roadways that connect to other large African economies but to major domestic seaports in Maputo, Beira, Nacala, and Pemba.
Mozambique is also home to fourteen airports. Its largest is Maputo International Airport. Thus, entities that develop warehouse infrastructure in Mozambique have access to several modes of transportation, including air freight, road delivery, and ocean transport. With this access, entities can develop flexible distribution plans to efficiently deliver goods to key markets and to serve the fast-growing Mozambique market.
Affordable existing infrastructure
Developing a warehouse from scratch is an expensive and time-consuming endeavor. With access to an existing logistics park, however, entities can expand into Mozambique without significant overhead.
For example, the Agility Logistics Park in Maputo offers thirty-two thousand square meters of international-standard warehousing, with more facilities under development. Entities can partner with Agility not only to house their products but also for distribution, assembly, processing, and light manufacturing. As a result, entities receive access to compliant modern infrastructure that supports the entire supply chain, along with a partnership with a reputable logistics provider.
Strategic long-term growth
Mozambique is one of Africa’s fastest-growing economies, and establishing a logistics footprint in this country positions entities for future growth. Experts project that Mozambique’s gross domestic product (GDP) will increase by 8.69 percent in 2023 and 11.11 percent in 2024. By leveraging its position along major connections and its continued growth, entities can expand into a key African market as it continues to grow.
Best bonded warehousing in Mozambique
A bonded warehouse stores, assembles, packages, or manufactures dutiable goods, or goods that entities must pay taxes on when they ship them into a country. Government entities or large private enterprises own these secure warehouses. There are many requirements for finding the best bonded warehouse operation in Mozambique, and it is important for entities to be aware of these considerations.
According to the Mozambique Ministry of Industry and Commerce, a bonded or customs warehouse is a facility that allows entities to deposit goods in a safe location. While the goods are in the warehouse, the buyer does not need to pay customs duties until the entity releases the products from the facility.
Entities are only able to keep these goods for a certain amount of time, so it is important to partner with a logistics provider who is knowledgeable of Mozambique’s laws for bonded warehouses.
Logistics providers that offer bonded warehouses should also exhibit the following:
- Compliance with international standards
- Knowledge of duty and customs requirements
- Safe and secure storage for restricted items
- Well-established and connected shipping networks
- Facilities that can handle multiple types of goods in one location, including freezers, dry containers, and temperature-controlled rooms
- Access to complete logistics solutions, including freight forwarding, distribution, and deliveries
Services included with warehousing in Mozambique
When a company looks to expand into Mozambique, it needs a strong logistics provider on its side. Building a warehouse is a good start, but a reputable partner should provide services that help foster growth within focal point markets and surrounding economies. Entities should look for the following services when selecting a Mozambique warehouse park.
Infrastructure for the entire supply chain
Warehouses are only a single part of the logistics process. Entities also need to strategize distribution, connect to shipping networks, and identify requirements for international markets. Manufacturing, processing, and marketing are also key parts. For specialized industries, such as food and pharmaceutical companies, warehouses need to have proper cold-chain equipment in place. Thus, entities should look for a provider that offers infrastructure for the entire supply chain.
Additionally, logistics providers should offer international-standard warehouse parks. Different countries have different regulations for warehouses, but organizations such as the International Organization for Standardization also define broad requirements that these facilities should meet. Logistics providers should run warehouses that comply with international standards to ensure a safe, efficient facility.
Global logistics support
Since Mozambique offers multiple transportation options, entities will likely need to ship their goods across international borders. Compliance with international customs and logistics requirements can be challenging without the right partner. If an entity fails to meet certain requirements, governments may confiscate its shipments, levy fees and fines, and require the entity to submit to costly exams.
Mozambique warehouse providers should offer support for global logistics, including freight forwarding, customs clearance, and brokerage services. These providers should also understand the paperwork requirements for shipping to different countries and be able to ensure that each shipment meets international requirements.
Best uses for warehousing in Mozambique
With strategic access to several economies throughout Africa and opportunities for long-term domestic growth, a warehouse in Mozambique can deliver several benefits to businesses. Certain industries are likely to see more benefits from expanding into the country than others.
How to strengthen an entity’s Mozambique supply chain
To have a strong supply chain in Mozambique, an entity needs a reliable logistics provider on its side. Warehousing and distribution are complex processes, and handling large shipping networks requires significant expertise. By having access to complete supply chain solutions and an international standard warehouse, entities can achieve logistics success.
Since Mozambique is home to multiple transportation modes, entities need to strategically design their shipping networks for peak operational efficiency. A global logistics provider has the tools to identify which shipping option is best for each cargo load, helping reduce unnecessary overhead costs.
For organizations that require specialized solutions, such as cold-chain infrastructure for pharmaceuticals or food products, entities need access to the right equipment. Many logistics providers offer comprehensive solutions to support these operations, helping entities comply with global cold-chain regulations. With these solutions in place, many industries can facilitate international access to their products from a hub in Mozambique.
Industries that benefit from Mozambique warehouse parks
By expanding their warehouse facilities into Mozambique, entities can gain deeper access to key markets in Africa. Not only is Mozambique’s GDP seeing significant growth every year, but its multimodal transportation routes facilitate distribution to some of Africa’s largest economies.
While Mozambique offers prime warehouse space for many types of companies, nonprofits, and institutions, this country offers particular opportunities for a select few operations. Industries that benefit from warehousing in Mozambique include the following:
- Pharmaceuticals: Access to advanced pharmaceuticals is scarce in Mozambique, and demand for these products continues to grow. With temperature-controlled warehouses in Mozambique, pharmaceutical companies can deliver medical products not only to hospitals and medical clinics in the country but to other health facilities throughout southern Africa.
- Mining and quarries: Mozambique is a mineral-rich country with large deposits of coal, natural gas, and titanium, among other resources. This industry requires additional services, such as warehousing, processing, and distribution facilities in order to grow. Businesses in this sector should invest in warehouse space to support their operations.
- Humanitarian aid: Many residents in Mozambique and neighboring countries require humanitarian aid. Thus, nonprofits must have efficient access to people in need. With secure supply chain networks stemming from Mozambique, these organizations can better strategize the delivery of vital supplies. By investing in warehouse space in Mozambique, these entities can expand their reach and streamline the distribution process.
Growing opportunities for the oil and gas industry in Mozambique
According to the US Energy Information Administration, Mozambique is the third-largest holder of proven natural gas reserves in Africa. In addition to pharmaceutical companies, mining and quarry operations, and humanitarian efforts, Mozambique’s growing oil and gas sector poses significant benefits for industry stakeholders.
The US International Trade Administration projects that Mozambique will become a major liquefied natural gas exporter over the next ten years. This projection is due to the discovery of over 180 trillion cubic feet of natural gas reserves in the country. Mozambique’s current natural gas production oversees 2.6 trillion cubic feet of reserves.
However, oil and gas companies looking to expand to Mozambique need to adhere to strict regulations for warehousing and storage. Failure to comply with these laws can result in steep fines and penalties. An unsafe or insecure oil and gas infrastructure may also result in security breaches and gas leaks, leading to environmental damage, dangerous working conditions, and financial losses.
To flourish in Mozambique, oil and gas companies need sustainable, secure, and compliant warehouse spaces—and investing in an Agility Logistics Park can help. Agility is designing and building international-standard warehousing, container and truck storage, and other structures necessary to support oil and gas operations and position stakeholders for success. With Agility, oil and gas stakeholders can access the necessary infrastructure for handling hazardous materials, managing waste, storing heavy machinery, and more.
Join Agility’s warehouse park in Mozambique
When it comes to warehousing, Mozambique delivers significant benefits to domestic and international businesses, nonprofits, and other institutions. If your business wants to develop a Mozambique warehousing network, look no further than Agility.
Agility’s world-class logistics network fosters growth across international markets. Contact Agility today to learn more about our Mozambique Agility Logistics Park and strategize your expansion into one of Africa’s fastest-growing economies.