Tourism Economy: how to promote jobs, income and prosperity in Mozambique

Tourism Economy: how to promote jobs, income and prosperity in Mozambique

by Greenfield Nick 17/07/12

On July 2nd, SNV presented the publication titled Tourism Economy: how to promote jobs, income and prosperity in Mozambique, to the Mozambican Minister of Tourism, Mr. Fernando Sumbana.

This publication is the result of a collaborative effort between SNV, Ford Foundation, UNWTO-STEP, private sector representative organizations, and the Mozambican Ministry of Tourism. The publication was designed as a training tool for strengthening strategic thinking and skills development for public tourism managers.

 

 SNV Head of Tourism Federico Vingati with Minister of Tourism Mr. Fernando Sumbana

The book covers major issues related to tourism economy including destinations governance, measuring tourism impact, building public-private partnerships, value chains and clusters analysis and development, and destination marketing. The publication highlights a total of 26 cases covering the experience of SNV in the tourism sector of nine African countries. The publication was edited by Federico Vignati of SNV in Mozambique.

According to the Minister of Tourism, Mr. Fernando Sumbana, “We feel very proud to see how SNV has been able to put together such an important number of stakeholders to bring to Mozambique this important legacy. The book will be an important reference for us, government and for a new generation of professionals who will support that tourism will keep on generating income, employment and prosperity in Mozambique”

In his remarks, Federico Vignati said, “Although this book is not an end itself, it represents an important step towards strengthening government capacity to coordinate and lead tourism destination development in a sustainable and inclusive basis.   Mozambique has a clear vision; it understands tourism as a way to bring in prosperity to the country. We thank the government for the opportunity given, letting us make a small contribution to this wider and exciting challenge.”

It is time for Gas: why this is the ideal moment to introduce gas to the low-income families in Maputo City.

In Mozambique, 75% of the family households depend on biomass energy for cooking. It is estimated that each year about 16 million m³ is used to produce charcoal with an estimated wood value of more than $700 million, but generating only about $ 300 million in the local charcoal market.^[1] In 2011, the fastest growing

cities of Mozambique (Maputo, Beira and Nampula) consumed 8 million 60kg bags of charcoal, leading to price increases of up to 200%.^[2]

In 2011, the city of Maputo consumed 3 million bags of charcoal, generating a US$ 70 million market.

From an environmental impact point of view, the impact on forests of the charcoal demand in Maputo is enormous, so much so that nowadays the charcoal sold in the city is produced in areas up to 400 km away, while 10 years ago it was produced in the province. The reason? There are no more forests left.

Obviously, great difficulties in producing and distributing charcoal has an impact on prices, it increases them. Between 2010 -2012 the price went from 250 Mts per bag of charcoal to the current 650 Mts, and nothing prevents the price to continue to rise.[1]

Although charcoal is still convenient in Maputo, sold at several distribution points in various quantities at an affordable price, the monthly consumption per household in the peri-urban areas hovers around 650 to 750 Mts per month.[2]

This new price level and the expenses of low-income families, create a real market opportunity for the introduction of alternatives to charcoal, among which gas appears to be the most preferred and desired option.[3]

According to a recent study by SNV in partnership with FUNAE and the City Council in the Mafalala neighbourhood, 63% or 1.800 families already are aware that gas is an ideal alternative for cooking. In this neighbourhood, 30% of the families already combine with charcoal with gas, and everything seems to indicate that this is a trend.

According to the study, families who traditionally consume charcoal, now would be able and really wish to pay for gas, something that only a few years ago would have been unthinkable. At present the potential market of gas consumers in Maputo, i.e. capable of buying gas in sustainable market bases, would be around 100.000 families, or 36% of the charcoal consumers.

That is why, according to the study and the vision of the authors, turning low-income families and individuals into gas customers, poses not only a great institutional or government challenge, but offers above all an important market opportunity for the private sector.

The Case for Supply and Demand:

• Demand - (an expanding market that needs gas) - Based on market information, it is clear that at present over 100 thousand families in Maputo are in the process of constituting a new consumer market for gas. Taking also into consideration that biomass energy expenditure of family households is growing rapidly, this number tends to increase.

Right now, there does not exist a well-developed mechanism that distributes gas to low-income families in peri-urban areas. In the last decade several projects have been launched to promote cooking techniques using efficient stoves and alternative energy sources. These projects generated low demand, insufficient to bring about sustainable change.

Today the market is completely different, with high prices of charcoal, and average spending per family of between 650 Mts to 750 Mts per month, thus even exceeding the costs of LPG and electricity. This is the right time for the introduction of gas in Maputo.

From an economic point of view, meeting the demand of low-income families in Maputo, in addition to respecting the right to clean energy sources, offers a market opportunity that could translate into profits for companies that invest in inclusive business models targeting the Base of the Pyramid.

·       Supply – (Gas bottles on site with the right price) - Due to the current market structure focused on the upper middle class segment and the industrial market, gas supply and the gas distribution system in particular do not include the effective attendance of low-income families.

Low-income families spend up to 1/3 of their income on dirty and precarious energy sources, proportional values ​​that are much higher than those spent by a Maputo middle class family. (Estimated at 600 Mts per months).

At present there is no supply designated for the low income population, so that people from this consumer segment who have the means and the wish to change to a new source of energy cannot do so. While other industries such as telecommunications can leverage their performance by attending the low income population, offering a wide variety of prices and sales outlets, the energy sector has yet to explore these models. It is evident that a couple of years ago an effort in this direction would not have been feasible from a financial point of view, but today the reality is different.

Making consumers embrace the technological change, through buying a bottle of gas (3kg / 9kg) and a gas stove, is the main impediment at the moment.[1]

 By Federico Vignati - João Munguambe and Mario Batsana

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[1] SNV (2012) Study on the charcoal market in the Mafalala Neighborhood.

 

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[1]  Biomass Strategy (BEST Mozambique), preliminary results, 2012.

[2]  Biomass Strategy (BEST Mozambique), preliminary results, 2012.

[3]  See the Mafala Energy Market study.

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[1] Biomass Strategy (BEST Mozambique), preliminary results, 2012.

[2] The highest price increases have been observed in the southern region, above all in the Province of Maputo.

É tempo de Gás ( Maputo) - Moçambique

Todo día milhares de mulheres e crianças Moçambicanas vão a procura de lenha e carvão para atender necessidade simples, apenas poder cozinhar, ferver agua para beber e aquecer-se.

Somente nas Cidades de Maputo, Beira e Nampula foram consumidas 8 milhões de sacos de carvão em 2011. Segundo o último inventário florestal, feito pela Direcção Nacional de Terras e Florestas, são estimados cerca de 16 milhões de m3 usados para produzir carvão vegetal, um valor estimado em Madeira de 700 milhões de dólares, mas gerando apenas 300 milhões de dólares no Mercado de carvão local. Está-se por tanto queimando dinheiro.

No ano 2011, em Maputo foram consumidos 3 milhões de sacos de carvão movimentando um mercado de US$ 70 milhões.

Do ponto de vista ambiental o impacto nas florestas da demanda por carvão em Maputo é enorme, tanto é assim que hoje a produção de carvão que atende a cidade vem de até 400 km de distância, quando a apenas 10 anos era produzido na província. O motivo? Não há mais florestas.

Evidentemente, com maiores dificuldades de produzir e distribuir o carvão na cidade, o preço também tende a aumentar. Entre 2010 -2012 o preço passou de 250 mts o saco de carvão para os atuais 650mts, e nada impede que este preço continue a subir.

Embora o carvão em Maputo ainda seja conveniente, no sentido de ser vendido em diversos pontos e em diversas quantidades, o consumo mensal por família nas zonas periurbanas, hoje varia entre 650 aos 750 meticais. Este novo patamar de preços cria uma verdadeira oportunidade para a introdução do gás no segmento de famílias de baixa renda.

De acordo com o estudo realizado recentemente pela SNV em uma parceria com o FUNAE e o Conselho Municipal da Cidade, no bairro da Mafalala, 63% das famílias já percebem o gás como uma alternativa ideal para a cozinha doméstica. Neste bairro, 30% das famílias já combinam o carvão com o gás é tudo indica isto seja uma tendência. 

De acordo como o estudo, o consumidor de carvão hoje teria condições e desejo de pagar pelo gás coisa que há apenas poucos anos, seria impensável.

Os impactos negativos do uso do carvão ao meio ambiente, a economia e a saúde da população justificam a necessidade de um esforço coordenado entre os atores chave do sector para promover o uso do gás na Cidade.

Neste breve artigo não há necessidade de entrarmos no mérito do que é preciso ser feito, isto exige um verdadeiro diálogo multissectorial. Entre tanto temos evidencias para reconhecer  que a distribuição subsidiada de botijas de gás de 3kg, ou mesmo que a subvenção das atuais de 9kg seja um passo importante para facilitar que as 280 mil famílias que hoje utilizam carvão diariamente para cozinhar em Maputo, possam migrar para o gás.

Tonar pessoas de baixa renda, clientes de gás, não é apenas um grande desafio institucional,  mas sobre tudo uma importante oportunidade de mercado.   

Seja como for, uma coisa parece bastante evidente…..

É tempo de gás!