Dr. Philipp Schauer
Dr. Philipp Schauer

Dr. Philipp Schauer, Germany’s Ambassador to Mozambique, discusses the growing ties between the two countries. He also highlights some outstanding opportunities for investors.

European Times: Can you describe relations between Germany and Mozambique?

Dr. Philipp Schauer: The bilateral relationship is good and getting stronger. Since April 2014, the Germany-South Africa Chamber of Commerce has had a representative in Mozambique and around 30 German companies are now active here. Volker Bouffier, the Minister-President of Hesse, recently visited Mozambique with a delegation of 60 people representing Germany’s education, finance and science sectors, and this gave a new impetus to the two countries’ relations.

European Times: Which sectors are most attractive for German investors in Mozambique?

Dr. Philipp Schauer: Most large German companies here are focusing on supplying machinery and are interested in infrastructure projects. Siemens, for example, is supplying the electrical components of the railway line leading to Mozambique’s coal mines. The biggest potential project is to build a methanol fertiliser plant using locally extracted gas, and several German companies are interested in tenders to supply equipment for the plant. In the agriculture sector, German companies can provide much-needed technology and machinery. Renewable energy is another growth sector in Mozambique, and German investors are looking to get involved in hydropower (including rehabilitating dams), solar and wind-energy projects here. Some German companies have already provided solar-energy solutions and Siemens is exploring opportunities in wind power. The German embassy is considering putting together a group of German companies which will evaluate the potential of Mozambique’s local market.

European Times: How can German investors help improve Mozambique’s transport infrastructure?

Dr. Philipp Schauer: The main challenge is to reduce transport costs and increase efficiency in order to stimulate Mozambique’s trade activities. At the moment, the cost of transporting merchandise by ship along the coast is about the same as transporting by road. German cooperation supports the Mozambican government in its efforts to achieve a better business environment.

European Times: What is your personal message to investors looking into opportunities in Mozambique?

Dr. Philipp Schauer: Mozambique has maintained political stability for more than 22 years, has enormous potential, and welcomes international investment. The biggest opportunities are in Mozambique’s gas reserves, and proper exploitation of them will help stimulate all sectors of the economy. The banking and real estate sectors are also set for growth. Mozambique is a beautiful country with friendly people and the German embassy is ready to support German and other European investors who come here. Germany welcomes the growth of a private sector that creates jobs and helps develop a sustainable economy in Mozambique.