Heineken’s decision to invest in Mozambique held up by high tax burden

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Heineken’s decision to invest in Mozambique held up by high tax burden

6:42 CAT | 18 May 2017

Lusa

Dutch brewer Heineken is considering investing in Mozambique, but the country’s tax regime is holding it back, the director of Mozambique’s Investment Promotion Centre (CPI) announced yesterday.

“We also think high excise duty is a factor, because there are plants already here that are closing,” Lourenço Sambo told journalists yesterday in The Hague on the sidelines of the three-day official visit to the country by Mozambican president Filipe Nyusi.

The government plans to submit a proposal to revise the tax burden “for constituting a barrier to investment,” he added.

Heineken has already chosen a site in Manhiça, southern Mozambique, for a factory budgeted at US$100 million (EUR 90 million).

On its visit to the Netherlands, the CPI delegation has also a visit to the headquarters of the oil company Shell, winner of the tender for the extraction of natural gas from the Rovuma basin in the north of the country from a predicted 2023 on.

“We are going to visit Shell and have a meeting to see what the company has done,” Sambo said, highlighting investment of at least US$500 million.

Source: Lusa