Commercial Agriculture

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Commercial Agriculture

• Manica Province
• Mozambique

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Competitive

• Can Mozambique be Competitive Regionally and
  Globally ?

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Fertilizer Prices
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Diesel Prices
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Minimum Wage
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Labour Costs vs. Inflation
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Costs Affecting Competitiveness

• Theft of Goods with Very poor assistance from the
  Police No Follow Ups.
• Poor EDM supply causing loss of electrical goods
  and costs of downtime.
• Beauracracy tying up the management of the
  business.(e.g Made in Mozambique Licenses
  Fuel assistance for Agriculture)

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Costs Affecting our Competitiveness

• Accounting system and advice on IVA and the
  quality of Accountants causes huge losses.
• The Biggest Unknown cost is FINES,Companies are
  terrified of fines.Mozambique's punitive methods
  need to be changed to educative immediately to
  give investors confidence.These Fines also
  encourage CORRUPTION.
• Illegal Land occupation affects crop
  rotations,disease control,soil conservation,seed
  production etc. etc. etc.

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Costs Affecting Competitiveness

• Duties on Agricultural Inputs Transport.
• EDM some bills have reached US1,00 per Kw/Hr.
• Chemicals ever increasing prices due to
  registration and duties etc.
• Seed has to be imported at a huge cost.
• IVA on Agricultural products.

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Costs Affecting our Competitiveness

• Labour disputes being entertained by courts when
  they have clearly NO CASE and the employer incurs
  all the costs even if he wins or is in the
  right.Again this uses up endless hours of
  valuable management time.

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EQUALITYDouble Standards

• There appears to be two sets of rule books.
• A foreign or national Investor appears to have
  different legislation applicable to him compared
  with the general population as they are assumed
  to have money and therefore officials will
  believe they are able to pay bribes or the
  fines.EXTORTION.

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• All these costs need to be accounted for and end
  up being added to overhead costs.
• This seriously Increases our Production Costs and
  eventually drives us out of the market as is the
  current case.
• You will not see fines and inefficiencies being
  quoted in the overhead column in many Other
  countries that we have to compete against
  globally.

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Accountability

• Police
• EDM
• Police Transito
• All Public Services Departments.
• DPADR DSPGC

• Report Numbers
• Follow Up Information.
• Fines Contested.
• Deadlines Set.if Not met goes to Superior.
• Discipline of staff.
• Follow the law and remove illegal settlements.

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CAN MOZAMBIQUE BE COMPETITIVE IN THE REGION OR IN
THE REST OF THE WORLD ?
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THE ANSWER IS YES,PROVIDING URGENT ATTENTION! AND
IMMEDIATE ACTIONS TAKE PLACE ON THE POINTS
MENTIONED IN THIS PRESENTATION !
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What needs to be done!!

• Reduce Taxes/Duties on Inputs.
• Remove IVA on Ag Goods Inputs
• Improve Security On Farms Police Service.
• Establish Research Stations(Pvt GoM).
• Water Security Irrigation.
• Agricultural Finance,Land Bank.
• Remove Fines Offer Educative Advice.
• Ensure Land Rights Are Respected.
• Reduce Diesel fuel costs further to Agriculture
• Remove Potencia on EDM for Agriculture.

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Investor Farms
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Tobacco Grown
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Paprika Grown
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Beans Grown
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Maize Grown
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Total Crops Grown
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Crop Sales
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Employment
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Annual Salaries Paid
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Maize Production Costs
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Production Costs/Ha
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Sales Prices
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Maize Yield to Break Even
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Tobacco Yield to Break Even
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Paprika Yield to Break Even
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OBRIGADO

• THANK YOU