President Filipe Nyusi on 3 June inaugurated a new aluminum factory owned by the Bahrain based group Midal Cables International. The Midal factory is in the Beluluane Industrial Park, on the outskirts of Maputo, near the Mozal aluminum smelter, which is supplying Midal with the raw material it needs to make aluminum rods, wires and overhead line conductors. The factory has been producing since December 2014.
It has the capacity to produce over 50,000 tones of rods and other aluminum items a year, and has already begun exporting them to six African countries (South Africa, Namibia, Zimbabwe, Tanzania, Kenya and Nigeria). Mozal has been producing aluminum ingots since 2000, but this is the first time its aluminum has been used inside Mozambique.
Prior to the start of Midal’s operations, all of Mozal’s production was exported, mostly to Europe. According to a statement from Midal, the group’s total investment in Beluluane is US$65 million. The factory employs 250 workers, 83 per cent of whom are Mozambican. Most of the Mozambican workers were trained in Bahrain. Midal states that, through contracted services, it supplies a further 1,000 jobs indirectly.
President Nyusi told the ceremony that the government will continue to concentrate efforts to attract and facilitate new investments similar to Midal, with the potential to induce economic growth and development. He believed that the export of aluminum products made in Mozambique will help place the country’s name on the industrial map abroad. The Chairperson of the Midal board, Hamid Al Zayani said “this decision is strategic since the African continent is a priority market for our group.
We opted for Mozambique because of the conditions offered for us to set up her, and also because it is an excellent point from which to serve the main markets of Africa”.Midal will use about 10 per cent of the aluminum produced by Mozal, while the rest will continue to be exported. Because Beluluane is an Industrial Free Zone, Midal enjoys significant fiscal benefits. For the first ten years of its activity it will not pay any corporation tax (normally levied at 32 per cent of a company’s profits). Companies in industrial free zones are also exempt from customs duties and value added tax (VAT) on imported goods. The main shareholders in Midal are the Saudi Cable Company and Al Zayani Investments.