Construction World August 2020

INVESTMENT DESTINATION: MOZAMBIQUE As the COVID-19 pandemic continues to highlight the fragility of the economy and related market investments in times of crisis, it also underlines the tangibility of real

estate as an option to which investors will be drawn. F or those considering investment and or emigration into Europe or Australia, there are other countries with far more staggering opportunities for capital growth on our doorstep. The '2020 African Economic Outlook' shows that economies on the African continent are growing well, higher than the global average. The report projected a steady rise in growth, from 3,4% in 2019 to 3,9% in 2020 and 4,1% in 2021. Take burgeoning Mozambique, one of Africa’s most sought-after WRXULVW DQG LQYHVWPHQW GHVWLQDWLRQV IRU H[DPSOH 7KLV LV D FRXQWU\ that is on the cusp of an economic boom due to further anticipated JURZWK WKDQNV WR H[SDQVLRQ ZLWKLQ WKH RLO DQG JDV LQGXVWU\ DORQJ with untapped tourism potential in the region – even within the pandemic scenario. It’s also one of the top three fastest growing economies in Africa. 6DVRO LV DOUHDG\ SURPLQHQW LQ WKH DUHD ZLWK D VLJQLͤFDQW RSHUDWLRQ DVVLVWLQJ RWKHU FRPSDQLHV ZLWK QDWXUDO JDV H[WUDFWLRQ and maintenance of the pipelines running between Vilanculos and Secunda in South Africa, and has recently announced their 86' ELOOLRQ SURMHFW H[SDQVLRQ The third annual MozamReal Investment Forum took place on 1 July, and provided access to opportunities and insight into the real estate sector, which is predicted to become one of Africa’s fastest growing sectors. Mozambique is increasingly opening up to property investors following the introduction of new legislation in 2007, which allows foreigners to buy into multiple-unit resort developments. This offers a particularly attractive option for South African investors, who are persuaded by an environment where serious and violent crime is uncommon. ̸,W̵V D ͥRXULVKLQJ SURSHUW\ PDUNHW WKDW KDV DWWUDFWHG KLJK FDSLWDO so it’s understandable why investors are scrambling to get involved,” says Ettiene Erasmus, property developer at Mozambique Property Developments & Investments (Mozprops). Erasmus is behind the development of a 42-hectare coastal estate that combines residential, hotel and business options, in a prime development area 12 km from Vilanculos. According to Erasmus, developments like these offer South

African investors the chance to begin building their own global real estate portfolio offshore. Erasmus has a solid pedigree as an entrepreneur for the past three decades in Mozambique. He has led and managed various businesses in sectors such as real estate, LPSRUWV H[SRUWV ORJLVWLFV DQG GLVWULEXWLRQ The new project, Bazaruto Island View Estate (BIVE), is in an idyllic location overlooking the Bazaruto Archipelago along the $IULFDQ FRDVW DQG ZLOO EH RQH RI WKH ODUJHVW PRVW OX[XULRXV FRDVWDO developments in Mozambique. “It is an attractive and reliable investment prospect for those seeking a retirement oasis, a long- WHUP SURSHUW\ LQYHVWPHQW RU HYHQ DQ RSSRUWXQLW\ WR H[SDQG D business investment portfolio,” Erasmus says. 2QFH FRPSOHWH WKH IXOO\ FRQWDLQHG SUHFLQFW ZLOO LQFOXGH OX[XU\ homes, a hotel, beach lodges, a resort, clubhouse, a business centre, medical facility and a small crafts marina, with a marine park nearby. The units will offer owners the potential for live-in, long-term or short-term rentals. 7KH ͤUVW VWDJH RI WKH SURMHFW KDV EHJXQ ZLWK WKH FRQVWUXFWLRQ RI the show houses. Prices start from R275 000 to R3,5-million for a property on the development, with one-bedroomed houses selling for R875 000 in the BIVE private residence section. Mozambique is also South Africa’s third-largest trading partner on the continent. Total trade between the two countries has grown from R43,9-billion in 2013 to R52,4-billion in 2018. In addition South African companies, state-owned enterprises (SOEs) and small, medium and micro enterprises (SMMEs) have invested over R90-billion across a broad spectrum of sectors in that country between January 2003 and March last year. This increased investor interest means the paradise property \RX PLJKW LQYHVW LQ FRXOG ERRP E\ D \HDU IRU WKH QH[W 10 years. The potential is elevated by a maturing market that is beginning to also embrace business models that cater for all traveller VHFWRUV UDWKHU WKDQ WKH WUDGLWLRQDO IRXU DQG ͤYH VWDU JXHVWV 7RGD\ many new investors in sub-Saharan Africa are focusing on lower consumer price points in order to accommodate a wider range of leisure as well as business travellers. ƒ

19

CONSTRUCTION WORLD AUGUST 2020