weighted score 3.4 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Mozambique
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Mozambique as a sourcing destination.
Labour cost competitiveness
9
Among the cheapest labour globally. Manufacturing minimum wages well below USD 100/month. Highly cost-competitive for labour-intensive production.
Supply base depth
2
Very limited formal manufacturing base. Cashew processing and basic agricultural commodity handling dominate. No meaningful industrial supply chain clusters.
Logistics & infrastructure
2
Very weak infrastructure outside Maputo corridor. Road, rail, and port networks limited. Nacala and Beira corridors serve mineral exports but general logistics severely constrained.
Workforce skills
2
Low literacy and formal education rates. Technical and vocational training limited. Large but predominantly unskilled labour force.
Scalability
6
Large young population provides theoretical labour scalability. LNG megaprojects demonstrate capacity for large-scale investment. Practical scalability constrained by infrastructure and governance.
Ease of doing business
2
Complex regulatory environment with weak institutional capacity. Corruption endemic. Land rights uncertain. Foreign investment facilitation improving but remains challenging.
Trade access & tariffs
2
EU EBA duty-free access is a significant advantage. SADC membership. Limited FTA network beyond EBA and regional agreements.
Sustainability baseline
2
Minimal environmental regulatory enforcement. Deforestation and charcoal production are major environmental concerns. ESG audit infrastructure virtually non-existent outside extractive sector.
Innovation & IP
5
Very low R&D investment and patent activity. LNG sector brings some technology transfer. University and research capacity minimal but growing from a low base.
Quality standards
2
Quality management systems rare outside extractive and LNG sectors. No meaningful ISO certification base in manufacturing. Cashew and agricultural quality variable.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage level
- Mozambique has among the cheapest labour globally. Minimum wages in the manufacturing sector are well below USD 100/month, making the country highly cost-competitive for labour-intensive production relative to Asian and Latin American peers.
- Workforce demographics
- Population of approximately 33 million with a very young median age. Large potential workforce pool, though formal-sector employment remains limited and rural-to-urban migration is ongoing.
- Agriculture base
- Cashew nuts and sugar are the primary agricultural export commodities. Mozambique is one of the world's largest raw cashew producers, though most processing historically occurs offshore in India and Vietnam.
Energy & Infrastructure
Energy & Infrastructure
- LNG megaprojects
- TotalEnergies Mozambique LNG and the ENI-operated Coral South FLNG are the headline investment projects. Coral South began production in 2022. TotalEnergies' onshore facility (USD 20B+) remains suspended due to Cabo Delgado insurgency — restart timeline uncertain.
- Infrastructure quality
- Very weak infrastructure outside Maputo corridor. Road, rail, and port networks are limited and poorly maintained. The Nacala Corridor and Beira Corridor provide mineral export routes but general logistics infrastructure remains a major constraint for manufacturing sourcing.
- Power supply
- Cahora Bassa hydroelectric dam generates substantial power, much of which is exported to South Africa. Domestic electrification rates remain low, and industrial power supply outside major centres is unreliable.
Trade Access & Market Position
Trade Access & Market Position
- EU EBA access
- Mozambique qualifies for the EU's Everything But Arms (EBA) scheme, granting duty-free, quota-free access to the EU market for all products except arms. This is a significant tariff advantage for EU-bound sourcing.
- Regional integration
- Member of SADC (Southern African Development Community). The SADC-EU Economic Partnership Agreement provides a broader framework for regional trade, though Mozambique's primary benefit comes via EBA as an LDC.