Strategy for
PARPA
improving the
Business Climate
MOZAMBIQUE
Introduction
1 or two paragraphs to highlight the will of Member States and
commitment to being investment friendly.
POLICY, PLANS AND PRIORITIES
1
The government has 5-Year Development Plans with the new plan just starting
now from 2010-2014. Every year, the Government publishes a Social Economic
Plan (“Plano economic social”) that sets the target for the year.
In addition there is an economic and social development strategy for 2011-2014
which is called “Action Plan for the Reduction of Poverty (PARP)”. PARP 20112012 is the continuity of PARPA II which has been adopted in 2006, covering the
period 2006-2009, and extended up to 2010. Since PARPA I in 2001, poverty
reduction goals are integrated in Government’s Five Year Plans. The main
objective of PARP 2011-2014 is to reduce poverty from 54.7% in 2008/09 to 42%
in 2014 and its approach is based on the following objectives and pillars:





The increase of production and agro-fishery productivity
The increase of job opportunities
Human and social development
Pilar 1- Good governance
Pilar 2- Macroeconomy
The Mozambican Government has identified that an improvement of the business
climate is vital for economic development in the country. This position was already
reflected in PARPA II. To better define a strategy with mechanisms to work
specifically on the different areas, the Strategy for the Improvement of the
Business Climate was developed and approved in the Resolution No. 3/2008. It
entails diverse strategic activities to be performed until 2012 and defines the
instruments to be employed:
 Legal Reform of legislation dealing with the following matters: constitution and
register of societies, licensing of activities, labour conditions, bankruptcy of
companies, inspection of economic activities, import and export, informal sector;
 Fiscal and Financial Environment;
 Infrastructure;
 Governance: Purchase of contracts, investor protection, registration of property
One example is the company registration process. The aim is to reduce the
number of days for incorporation of a company from 7 to 1 day.
EMAN(ii)
The government has approved a new strategy to improve the business
environment. The principal objective is to simplify the procedures of doing business
and the competitiveness of companies.
1
INVESTMENT PROMOTION
1
IPEX
MIC
GAZEDA
CPI
1.1
Institutions
The Centro de Promoção de Investimentos (CPI) was established in 1993 and is
responsible for all investment procedures and the promotion of Mozambique as
investment destination. It works under the Ministry of Planning and Development
which is the responsible Ministry for investment in Mozambique. With the
Resolution No. 26/2009, CPI received a new status which revealed the Decree No.
39/95 from 18 October and the alterations of Decree No. 9/2001 of 20 March. CPI
is a public institution of administrative and financial independence.
Its functions include, among others:
 Promote the investment opportunities in Mozambique within and outside the
country;
 Propose and define policies to attract, and promote national and international
investments;
 Receive and present proposals for development to improve the investment
legislation;
 Receive, verify and register investment proposals;
 Guarantee the inter-institutional coordination in regard to the creation of
appropriate conditions for implementation and realisation of investment projects;
 Provide additional support services and to investors;
 Assure and intervene in the facilitation of processes such as licenses and
permits necessary for the implementation of the investment project;
 Keep a register of authorized investment projects;
 Assure and observe legislation and Government politics in regard to
investments.
CPI intends to develop to a One-Stop Shop one day. It also provides “After Care
Services” helping the investor to settle in the country.
GAZEDA is the institution in charge of the Industrial Free Zones and Economic
Special Zones.
The Ministry of Industry and Commerce (MIC) is in charge of trade and industrial
policy formulation.
The Instituto para a Promoção de Exportações (IPEX) is the traditional trade
promotion body promoting exports from Mozambique in destination markets. Its
role covers the identification and advice to exporters and investors on market
access opportunities and export-related logistical services. The core activity is
organizing missions to trade fairs.
MIREM - The Ministry of Mineral Resources (MIREM) is in charge of mineral
resources policy formulation as well as investments made or to be made in the
areas of prospecting, research and production of petroleum and gas and mineral
resources extraction industries.
1.2
Investment and Export
Incentives
Investment incentives are provided to registered and authorised investors
according to the Code of Fiscal Benefits, Law No. 4/2009, of 12 January. It
provides foreign and national investors the same set of incentives covering:
customs duty exemptions, tax credits, VAT exemption, deductions from taxable
income, deductions from tax, investment tax credit, and accelerated depreciation
for new immovable assets.
2
Export Benefits
Requirements
General
Industrial
Free for
Qualification
Zones
Requirement for entitlement to fiscal benefits
according to the Code is that the investment is
entitled to incentives according to the
Investment Law. In addition, investments that do not qualify according to the Law
are entitled if they are:
 Investments carried out outside the scope of the investment law in commercial
and industrial activities in rural areas;
 Investment in new infrastructures that are built for retail and wholesale
commerce;
 Manufacturing and assembly industries.
Besides this exception, investments in commercial activities are generally excluded
to enjoy fiscal benefits, except investment in new infrastructures built for retail and
wholesale commerce.
General benefits granted are:
 Exemption on import duties on equipment of class “K” of the Customs Tariff
Schedule (with the exception of VAT);
 Investment tax credit of 5% to 10% of the total investment realized, deductible
from the Corporate Income Tax (IRPC) payable but which shall not exceed the
tax otherwise payable, for a period of five tax years from the commencement of
operations.
For specific tax-related incentives, please see section 2.4.
IPEX provides support for exporters and investors on market access opportunities
and any export-related logistical services. The most important export promotion
strategy is the Industrial Free Zones. Details on incentive provided are found in
section 2.3. Aside of that, Mozambique does not provide any export subsidies.
1.3
EPZs, Freeports and other
Special Economic Zones
The system of Industrial Free Zones (IFZs) exists since 1999 and is Mozambique’s
main export promotion strategy. IFZs are not restricted to a geographical location
but can also be individual business entities. The most well-known example of an
IFZ is the Mozal aluminium smelter.
When the investor wants to establish an IFZ, he needs the authorisation from the
Council of Ministers in relation to the creation of an IFZ based on the proposal by
the Investment Council. Privately initiated proposals for the creation of an IFZ shall
be submitted to GAZEDA which is responsible for the analysis of the proposals and
drafting of the opinion to be submitted by the Investment Council to the Council of
Ministers for the purpose of deciding on the creation of the IFZ. Once approved, an
IFZ Developer Certificate will be issued. Companies wishing to establish in an IFZ
will be issued an IFZ Enterprise Certificate.
An important requirement is that at least 70% of annual production is destined for
export. Ineligible activities for IFZs are exploration and extraction of natural
resources.
Investors and/or business entities operating in Industrial Free Zones benefit from
the exemption of payment of customs duties on the import of:
 construction materials, machinery, equipment, accompanying spare and
accessory parts and other goods used in the carrying out of the licensed
Industrial Free Zones activity;
3
 goods and merchandise to be used in the
implementation of projects and exploration
of activities which have been authorised
under the terms of the Industrial Free Zones Regulations.
 VAT exemptions under this regulation apply to both on import and on internal
acquisitions as provided for in the VAT Code.
Rapid Rural
Special
Economic
Zones
Development
Zone
Benefits for Industrial Free Trade Zones Developers as well as Free Zone
enterprises with respect to Corporate Income Tax (IRPC) are:
 IPRC exemption in the ten tax years;
 a 50% reduction on IPRC tax from year 11th to 15th tax year;
 a 25% reduction on IPRC tax for the remaining life of the project.
Isolated Free Zones Enterprises approved in accordance with the terms of the Free
Zone Regulations benefit from the following incentives with respect to the
Corporate Income Tax (IRPC)
 IPRC exemption for the first 5 years;
 50% reduction on IPRC tax from year 6 to 10;
 25% reduction on IPRC tax for the remaining life of the project.
Sales from an IFZ to the national market and territory are considered as an import
and are, hence, subject to import duties and taxes. The same applies to the sale.
The Code of Fiscal Benefits provides that Special Economic Zones Developers
and Enterprises receive benefit in form of an exemption from the payment of
customs duties (including VAT on import and on internal acquisitions) on the import
of construction materials, machinery, equipment, accompanying spare and
accessory parts and other goods used in the carrying out of the licensed Special
Economic Zones activity.
1. From the date of the issuance of the respective Certificate, Special Economic
Zones Developers benefit from the following incentives with respect to
Corporate Income Tax (IRPC):
a) IRPC exemption in the first five tax years;
b) a 50% reduction in the rate of IRPC tax from the 6th to the 10th tax year;
c) a 25% reduction in the rate of IRPC for the remaining life of the project.
2. From the date of the issuance of the respective Certificate, Special Economic
Zone enterprises benefit from the following incentives with respect to
Corporate Income Tax (IRPC):
a) IRPC exemption in the first three tax years;
b) a 50% reduction in the rate of IRPC tax from the 4th to the 10th tax year;
c) a 25% reduction in the rate of IRPC for the remaining life of the project.
3. Special Economic Zone enterprises in the service sector approved in
accordance with the terms of the Special Economic Zone Regulations
benefit from a 50% reduction in the rate of IRPC tax for a period of five tax
years.
Rapid Development Zones (ZRD) are geographic areas within the national territory
of Mozambique that possess a great natural resource potential but which are
lacking in infrastructure and have a weak level of economic activity.
Currently, ZRDs include the Zambeze River Valley zone, Niassa Province, Nacala
district, Ilha de Moçambique (Moçambique Island) and Ibo Island. Further areas
may be approved by the Council of Ministers as competent authority. The
Zambeze River Valley zone includes: all districts in Tete Province; the districts of
Morrumbala, Mopeia, Chinde, Milange, Mocuba, Maganja da Costa, Nicoadala,
Inhassunge, Namacurra and Quelimane in Zambézia Province; the districts of
4
Expenditure
Customs
Investment
Training
costs
Duties
Tax
to be
Gorongosa,
Maringué,
Chemba,
Caia,
Credit (CFI) as Fiscal Marromeu, Cheringoma and Muanza in Sofala
considered
Costs
Province; the districts of Bárue, Guro, Tambara
and Macossa in Manica Province.
Eligible Activities for fiscal benefits are: agriculture; tree plantations; aquaculture;
stock-raising, forestry operations; wild life related operations; water supply;
electricity generation; transport and distribution; telecommunications; construction
of public use infrastructures; housing construction; construction of agriculture
related infrastructures; construction of hotel infrastructure and hotel operation;
tourism and related activities; construction of trade infrastructure; industry; cargo
and passenger transport; education; health.
The incentives are:
 Exemption on customs duty and VAT on import goods of category “K” including
spare parts and accessories;
 Investment tax credit of 20% for five years on the total investment realized;
 Any portion not used in the respective tax year may be carried forward and
used in the 5 successive years;
 Costs on training as described apply
 Expenditures considered as fiscal costs apply.
1.4
Tax Incentives
The Code of Fiscal Benefits (2009) specifies in Article 6, that exemption from
customs duties is granted for goods imported and not produced in Mozambique, or
if they are produced in Mozambique do not satisfy the specific characteristics for
the purpose of function required. Food, drinks, tobacco, clothing, passenger
vehicles and other articles of personal and domestic use are excluded from this
incentive.
For project implementation, exemption from customs duties and VAT are granted
for a period of 5 years.
Investment Tax credit is a deduction from the corporate income tax granted during
5 fiscal exercises and applies to x percent of the total investment realised. The
percentage is as following:
 5% for Maputo Cidade
 10% for investment projects carried out in the other provinces
 20% for investment projects in the Rapid Development Zones.
Costs for professional training of Mozambican employees is deductable from the
taxable corporate income during the first 5 years to a maximum of 5% of the
taxable income. For the case of training in the utilization of equipment that is
considered as new technology, up to 10% is deductable.
Article 19 of the Code covers costs that can be considered as Fiscal Costs and are
treated the following way:
1. During a period of five tax years dating from the date of commencement of
operations, investments eligible for fiscal benefits under the terms of this
Code the following allowances may be also considered as costs for the
determination of taxable income for corporate income tax (IRPC) purposes:
a) in the case of investments carried out in the City of Maputo, 110% percent of
the value of expenditure in the construction and rehabilitation of roads,
railways, airports, mail delivery, telecommunications, water supply, electrical
5
Tourism
Rural
Infrastructure
Manufacturing
Agriculture
Commerce
andand
Hotels
and energy, schools, hospitals and other works that
and Industry
Assembly
Fishery
Industry are considered to be of public utility by the
competent authority;
b) In the case of the other provinces, an amount equal to 120% percent of the
expenditure, under the same terms as the previous paragraph.
c) In the case of expenditure for the acquisition for personal ownership of works
of art and other objects that are representative of Mozambican culture as
well as activities that contribute to the development of such works under the
terms of the Law for the Defence of Cultural Patrimony, Law 10/88, of 22
December, only 50% of the expenditure is deductible as a cost for tax
purposes.
2. The terms and provisions of the previous paragraph shall be applicable to
income subject to the Personal Income Tax (IRPS), but only in respect of
income from activities belonging to the Second Category of IRPS.
For private investments or investments conducted under public-private
partnerships in the infrastructural sector, custom duties and VAT payments are
exempted for goods classified under category “K” in the Customs Tariffs Schedule
including accompanying spare parts and accessory parts.
Investments with exclusive objective or establishing basic public infrastructure
receive:
 80% reduction in Corporate Income Tax (IRPC) rate in the first 5 years;
 60% reduction in the IRPC rate from year 6 to 10;
 25% reduction in the IPRC rate from year 11 to 15.
In case the taxpayer is subject to personal income tax, the described benefits apply
only to the taxable income derived from the activity benefitting from the incentive.
Investments in the construction and/or rehabilitation of infrastructure to be used
exclusively for the conduct of commercial and industrial activity in rural areas
receive customs duty and VAT exemption for import goods of category “K”, as well
as the goods: freezers, scales, weights, cash registers, oil and fuel meters,
counter.
Investments in this sector receive the following incentives:
 Manufacturing industry: duties exemption on import of raw materials to be used
in the manufacturing process
 Assembly of motor vehicles, electronic equipment, computer and
communications technology: exemption on import duties for material to be used
in the industrial production process.
This sector has the following incentives:
 Customs duty and VAT exemption for import goods of category “K” and
accompanying spare and accessory parts
 80% reduction on IPRC until 31 December 2015
 50% reduction on IPRC from 2016 until 2025
 Costs for training deductable on IPRC as described above
Specific incentives are applicable for investments in:
a) Construction, rehabilitation, expansion or modernization of hotelery units and
the respective complementary and related parts, with the principal purpose
being the provision of tourism services;
b) Development of infrastructure for the establishment of camping and caravan
parks with a minimum three star classification;
c) Equipment for the development and exploration of marinas;
6
US market
Special
Agreements
access d) Development of wild life reserves, national
parks and game reserves for tourism.
Excluded from special incentives are:
a) Rehabilitation, construction, expansion or modernization of restaurants, bars,
cafés, food establishments, discotheques and other similar units when not a
part of the units referred to in the previous paragraph;
b) Car rental;
c) Travel agencies, tourism operators and similar activities.
The incentives are exemption from duties and VAT on import of goods in category
“K” of the Customs Tariff Schedule, as well as construction materials excluding
cement, blocks; tiles, paint and varnish; rugs and carpets; sanitary equipment;
furniture; textiles; elevators; air conditioners; kitchen equipment; refrigeration
equipment; tableware and restaurant and bar articles; communication equipment;
safes; computer and sound equipment; televisions; recreational watercraft, yachts
and related equipment and water sports security equipment; aircraft, airplanes,
helicopters, hang-glider, gliders, flight simulators, equipment, and related
equipment and tourist activity security equipment.
The stated goods also qualify for benefits under the Investment Tax Credit.
Furthermore, accelerated depreciation of new immovable assets, vehicles,
automobiles and other tangible fixed assets used in the hotel industry and for
tourism activities may be increased by 50%.
Further special incentives are granted for investments in the Science and
Technology Parks, and for large dimension projects. Please see the Code of Fiscal
Benefits for details.
1.5
International Trade & Export
Promotion
PARPA II also targeted reviewing Mozambique’s trade policy and strategy which
was adopted in 1999. The review shall emphasise more on deepening trade
Being signatory to the Cotonou Agreement between the European Community and
the ACP states for preferential access to the EU market. The EPA negotiations
with various ACP regional groupings are mostly ongoing and Mozambique is part
of the SADC negotiation group. An Interim EPA was signed end of 2007 and the
final EPA is suspected to be completed soon. Since 2004, Mozambique had also
benefited from preferences granted under the Sugar Protocol. As LDC, another
possibility for preferential market access is the “Everything But Arms” (EBA)
initiative.
Preferential access to the US market is given through the African Growth and
Opportunity Act (AGOA) which grants duty-free and quota-free access for a range
of about 6,400 products until 2015 under its Generalised System of Preferences
(GSP). In addition, Mozambique signed a Trade and Investment Framework
Agreement (TIFA) with the US for bilateral consultations on trade and investment
matters.
Mozambique does not have import quotas but an often time-consuming and
bureaucratic customs clearing system. Many consider it a significant non-tariff
barrier according to the US Commercial Guide (2006).
Preferential trade agreements have been signed with Malawi (2005) and
Zimbabwe (2004). The agreement with Malawi allows duty free treatment to
originating imports except for certain products such as beer, branded soft drinks,
7
Minimum
Import
Definition
Equality
License
ofof
FDI
chicken, cooking oil, eggs, petroleum products,
Investment
Restrictions
Requirements and sugar and tobacco. The agreement with
Treatment
Investment
Taxes
Requirement
Zimbabwe covers similar duty-free treatment
with exception of beer, manufactured tobacco,
branded soft drinks, road motor vehicles, and sugar. Goods entering under these
treatments have to pass specific customs posts, and vice versa.
There are no import taxes except on sugar and some luxury items. Tariffs and VAT
have to be paid. Importers have to be licensed with the National Directorate of
Trade which is part of the Ministry of Industry and Commerce.
ACCESS AND ADMISSION OF
FOREIGN INVESTORS
2
1.6
Foreign Investment & Capital
Mobility
According to the Law on Investment, Law No. 3/93 of 24 June, article 1, the
definition of Foreign Direct Investment (FDI) is the following:
“any form of foreign capital contribution valuable in monetary terms which
constitutes own equity capital or resources at the own account and risk of the
foreign investor, brought from external sources and to be used in an investment
project for carrying out an economic activity, through a company registered in
Mozambique and operating from Mozambican territory.”
The Law on Investment, 1993, guarantees in article 4 equal treatment of foreign
investors, employers and workers in terms of rights, obligations and requirements
to Mozambican nationals in accordance with Mozambican legislation. An exception
specified in paragraph 2applies to cases when projects of nationals may merit
special treatment and support by the Government due to their nature of scale of
investment.
Private investors are free to invest in any economic activity that is not exclusively
reserved to the Government or public sector initiative according to Article 11.
These areas can be defined by the Council of Ministers and included to a certain
degree private investment.
Article 6 of the Regulations of the Investment Law, 2009 sets the minimum value
for foreign direct investment at MZN 2,500,000.00 (approximately US$ 90,000) for
eligibility for external remittance of profits and re-export of invested capital.
Furthermore, if an investor satisfies the following requirements, he also qualifies:
(a) “Generates an annual sales volume that is not less than three times the amount
fixed in the preceding clause 6.1 as from the third year of operations;
(b) Registers annual exports of goods or services with a value equivalent to one
million five hundred thousand Meticals (1,500,000.00Mts);
(c) Creates and maintains from the second year of operations at least twenty five
direct employment positions for Mozambican nationals who are registered with
the social security system.”
Most economic sectors are open to foreign equity ownership with the exception of
media and telecommunications. Foreign ownership in media enterprises including
TV channels and newspapers is only allowed up to a maximum of 20%. The fixedline telecommunication sector is reserved for public investment and only the
Mozambican company Telecomunicações de Moçambique S.A.R.L. is allowed to
operate in this sector.
8
Investment project
application
1.7
Foreign
Investment
Establishment,
Registering and Licensing
Processes
The investment project proposal shall be submitted in quadruplicate to CPI or
GAZEDA (in case of a special economic zone or industrial free zone) for approval
and registration purposes. The application can be in either English or Portuguese
language and can also be submitted electronically. Required documents under
article 9 of the Regulations of the Investment Law are:
 Copy of the identification document of each proponent investor;
 Certificate of company registration or company name reservation certificate for
the Project Implementing Company;
 Topographic plan or drawing of the proposed location for implementation of the
project;
 In case the project is executed by a local branch of a foreign entity, a copy of
the Commercial Representation License issued shall also be attached.
After reception of the application, CPI or GAZEDA shall review the application
thoroughly by consulting with other relevant regulatory institutions and ministries
within a period of 7 days. If there is no response from the entity having regulatory
oversight of the sector to CPI or GAZEDA, a favourable response and approval is
deemed to be given.
The different authorisation competencies and time periods for investment project
decisions are specified in Article 12 of the Regulations of the Investment Law,
2009, and are the following:
1. “The decision regarding the approval of an investment project received by
CPI shall be made by:
a) the Governor of the Province, within a maximum period of three (3)
business days after the receipt of each proposal, in respect of national
investment projects with an investment value not greater than the
equivalent
of
one
billion
five
hundred
million
Meticals
(1,500,000,000.00Mts);
b) the General Director of CPI, within a maximum period of three (3) business
days after the receipt of each proposal, in respect of foreign and/or national
investment projects with an investment value not greater than the
equivalent
of
two
billion
five
hundred
million
Meticals
(2,500,000,000.00Mts);
c) the Minister with oversight of Planning and Development matters, within a
maximum period of three (3) business days after the receipt of each
proposal, in respect of foreign and/or national investment projects with an
investment value not greater than the equivalent of thirteen billion five
hundred million Meticals (13,500,000,000.00Mts);
d) the Council of Ministers, within a maximum period of thirty (30) business
days after the receipt of each proposal, for:
i)
investment projects with an investment value greater than the
equivalent of thirteen billion five hundred million Meticals
(13,500,000,000.00Mts);
ii)
investment projects that require a land area greater than ten
thousand hectares, to be used for any purpose except for the
purpose specified in the following clause 1(d)(iii);
iii)
investment projects that require a forestry concession area greater
than one hundred thousand hectares;
iv)
any other projects that have foreseeable political, social,
economic, financial or environmental impacts that by their nature
9
Business
Investment
Authorisation
Registration
should be reviewed and
decided by the Council of
Ministers, on the proposal of
the Minister who has oversight of Planning and Development
matters.
2. The General Director of GAZEDA has the competency to approve ZEE and
IFZ regime investment projects within a maximum period of three (3)
business days after the receipt of each proposal.
3. Taking into account the complexity or political, social or economic
implications, the General Directors of CPI and GAZEDA may submit
investment project proposals within their respective limits of authority for
consideration by the Minister who has oversight of Planning and
Development matters.”
Upon approval, the authorisation issued shall include a draft ministerial order
(Despacho) or Council of Ministers Internal Resolution which contains the specific
terms in relation to the respective project. The authorisation shall include:









identification of the proponent investors;
the project designation and objectives;
the name of the implementing company;
the location and scope of operations;
the value and structuring of the investment;
the investment incentives and guarantees;
the number of national and foreign persons to be employed;
the time limit and terms for the start of the implementation of the project;
other specific terms to be included in the authorisation that are relevant given
the characteristics of the project.
Once the authorisation is issued and the project approved, the implementation
shall start within a maximum of 120 days counting from the date of notification of
the authorisation, unless a different time period had been fixed in the authorisation.
The process for business registration has recently been simplified due to the new
Commercial Code, approved by Decree-Law No. 2/2005 of 27 December, and
complementary legislation. The process for registration involves now:
 Checking and reservation of the Company name at the Conservatory of Legal
Entities Registration;
 Agreement on the wording and final documents of the company’s Articles of
Association by the shareholders (consider article 92 of the Commercial Code);
 Recommendation to review the company’s Articles of Association by a
professional;
 Open a bank account for the purpose of depositing the share capital. Necessary
documents for that are a certified copy of the company’s name reservation
certificate, draft of the Articles of Association of the company, and certified copy
of the shareholders identification documents;
 Formalize the company registration at the Conservatory of Legal Entities
Registration by submitting the following documents:
 Copy of the company name reservation certificate
 Draft of the company’s Articles of Association
 Proof of bank deposit of share capital
 Certified copy of the shareholders’ identification documents.
The company registration is effected by the public One-Stop-Shop Bureaus
(Balcões de Atendimento Único-BAUs) which have been established in every
provincial capital in the country through the Decree No. 14/2007 of 30 May. Once
successfully registered, the investor receives an operating license. The Articles of
Association have to be published then in the Official Gazette (Boletim da
10
Foreign
Business
Special
BoM
Doing
Registration
Business
Licenses
Labour
Types
Evaluation
Quotas
República), followed by the fiscal registration at
the fiscal office to receive a tax registration
number (NUIT). Once all that has been
successfully done and all other required operation licenses obtained the company
can start operating.
The new Company Code allows five (5) forms of companies, being LDA
(sociedade por quotas) and the SA (sociedade anonima) the most common types
of company adopted for setting up business.
Companies operating in industrial or commercial activity need to obtain a licence
from the Ministry of Industry and Commerce. The Ministry also licenses foreign
business representations and foreign trade operators. Other licenses are issued by
the authorities of the respective sectors of activity and other entities that supervise
the area of activity (tourism, fishery, agriculture and livestock, telecommunication,
construction, cargo and passenger transport, health, education, etc).
Within a period of 90 days after authorisation of the project, the foreign investor
then shall register the foreign direct investment (FDI) with the Bank of Moçambique
(BoM). The investor has to submit the deposit receipts (bordereaux) issued by the
respective national banking institutions or the documents as confirmed by the
customs authorities depending on the nature or form of the respective investment.
Funds that are not transferred via the national banking system do not qualify as
authorised FDI as part of the investment project. Furthermore, payments abroad do
also not qualify as FDI unless the documentary proof is provided that goods of
corresponding value have entered into Mozambique.
In 2009, requirements for starting a business were still numerous and complicated
putting Mozambique on rank 143 in the world (out of 178 countries) for ease of
starting a business. Improvements achieved in the licensing process and general
facilitation by also reducing the required days and costs involved brought
Mozambique’s position up to rank 96 in 2010, out of 183 countries.
1.8
Foreign Employment &
Residence
The Regulation of the Investment Law, Decree No. 43/2009 states in Article 32 the
following on the Immigration regime:
1. Authorised investors and their representatives as well as individual owners
of EZETIs in the case of residential tourism projects, together with their
spouses and minor children, shall be granted the right of permanent
residence provided that compliance with the requirements is duly
documented by GAZEDA.
2. Foreign employees contracted to provide services in a ZEE shall be
granted temporary residence.
3. A foreign national who holds title to an individual EZETI shall be granted an
annual multiple entry tourism visa.
4. Foreign professional consultants such as architects, lawyers, economists
shall generate annual gross receipts of not less than one million Meticals
from their services in order to be granted the right of permanent residence.
5. Specialists contracted to carry out certain activities within a ZEE shall be
granted a short-term temporary residence authorisation.
According to the Labour Law adopted in 2007, any employer (national or foreign)
who wishes to employ a foreigner needs the authorisation of the Minister of Labour
or an agency to which it delegates powers upon application. If the employer
employs within the allowed quotas, he may provide a simple communication to the
Minister of Labour or the respective agency.
11
DUAT
Restrictions
and
Obligations
The maximum numbers of quotas for foreign
staff are:
 in large firms: up to 5% of the total number of workers;
 in medium firms: up to 8% of the total number of workers;
 in small firms: up to 10% of the total number of workers.
The definition of large company is over 100 employees, medium has 10 to 100
employees, and a small firm consists of 1 to 10 employees. In case that an
investment projects approved by the Government stipulates a number of foreign
workers greater or lesser than the quota indicated above, no authorization is
required. For such case, it is sufficient in such cases to inform the Minister of
Labour within 15 days of the arrival of such workers in the country.
However, there are restrictions on the hiring and firing of foreign workers. The first
requirement is that the foreigner has academic or professional qualifications
necessary for the position which no Mozambican citizen has or their number is
insufficient. Foreigners entering on diplomatic, courtesy, official, tourism, visitors,
students or business visas are not allowed to be employed. Furthermore, foreign
workers with a temporary residence may not remain in Mozambique after the
contract period has expired on which they entered the country. The contracting of
foreign workers by authorization of the Minister of Labour is regulated by Decree
No. 57/2003 of 24 December. There is a possibility that this decree may be
amended to be made more consistent with the Labour Law. The Decree specifies
that the burden to ensure the legality of the foreign worker falls on the employer
and that the employer is required to inform the Ministry of Labour when the
employment agreement terminates.
1.9
Foreign Investor Access to Land
and Property Rights
According to the WTO (2008), the regime to land access is still restrictive. The
Mozambican constitution, Article 109, reserves ownership rights to the State alone.
Foreign and domestic persons can obtain non-transferable usage rights based on
the Land Law as adopted in 1997. Land cannot be sold, mortgaged or otherwise
alienated.
Through the Land Law, the right to use land as conferred by the State is called
“Direito de Uso e Aproveitamento de Terra” or “DUAT” (which means literally
translated the right to use and enjoyment of Land). A DUAT is guarantees legal
possession of a tract of land and represents a formal proof of possession where
documented. That enables the State to organize its land cadastre as well.
The Land Law provides for three ways in which a DUAT can be acquired as
described in the ACIS & GTZ Legal Framework on the Acquisition of Land (p.11):
 By customary norms and practices - Occupation by individuals and local
communities based on customary norms and practices. This means that
individuals and local communities can obtain DUAT by occupation based on
local traditions, such as inheritance from their ancestors;
 By good faith occupation – Occupation by individuals who have, in good faith,
been using the land for at least ten years. This type of occupation only applies
to national citizens;
 By authorisation of an application presented to the State as established in the
land legislation. This is the only type of DUAT applicable for foreign natural and
legal persons.
A foreigner (as a natural person) may obtain access to land having residence in
Mozambique for at least five years. Legal persons must be established or
12
Contacts and
Legislative
Framework
Requirements
registered as a company in Mozambique. In
both cases foreign individual and corporate
persons may be holders of land use rights and
benefits, provided that they have an investment project that is duly approved.
Application for land use is made to the Cadastre which may grant land on a
provisional basis for two years to foreigners and five years to nationals. In the
period of operation, an inspection will be conducted to determine whether the land
is being used for the purpose specified. If the inspection is positive, a definitive
authorization can be granted for 50 years which is renewable for another 50 years.
3
FOREIGN INVESTMENT
OPERATIONS
1.10
Employment
The legislative framework covering labour and employment consists of:






The Constitution of the Republic of 2004;
International conventions to which Mozambique is a party;
Law No. 23/2007 of 01 August, called the “Labour Law”;
Law No. 8/98 of 8 July (the “Law 8/98” in effect until 30 October 2007);
Other laws and regulations, some of which predate the Labour Law but remain
in effect, others of which are subsequent to the Labour Law and, usually in the
form of decrees, that specifically regulate matters in that law; and
Sector-specific legislation touching on labour questions.
There are generally two types of contracts: indeterminate period contracts and
fixed term contracts. ACIS, GTZ (2007) have developed an overview of the
different rights and obligations for the two types of contracts (p. 17):
Fixed period contract:
 Maximum duration per contract = 2 years
 Maximum number of renewals = 2, though small and medium companies may
renew them freely during the first 10 years of activity.
 Days probation =
o 90 days for contracts longer than one year;
o 30 days for contracts between six months and one year;
o 15 for contracts up to six months;
o 15 days for fixed period contract for periods uncertain projected to last for 90
days or more.
 Leave = one day per month in the first year; two days per month in the second
year in 30 days per year from the third-year on.
 Termination = Severance based on time left until end of contract.
Indeterminate period contract:
 Maximum duration = indeterminate
 Maximum number of contracts = not applicable
 Days probation =
o 90 days for most workers; but
o 180 days for medium and higher level technicians and employees in
positions of management and direction
 Leave = one day per month in the first year; two days per month in the second
year in 30 days per year from the third-year on
13
 Termination = highly variable. See
severance tables, below. The severance
regime for the employees hired when Law
8/98 was in effect will remain in effect for
certain periods in respect of employees with rights vested thereunder.
Protection
Payment
Social
Essential
Work
Dispute
Security
and
of
Minimum wages
Documentation
Resolution
Maternity
and
Paternity
Wages are regulates by the Labour Law and by a Ministerial Order which
established the minimum wage every year. Every year, the minimum wages are
negotiated by the Government, representatives of the private sector and unions in
the Labour Consultative Committee.
Social Security is governed by articles 256-258 in the Labour Law, Law No. 4/2007
(the “Social Protection Law”) that provides the basis for social security and
recognizes the social security system. There is basic, compulsory, and
complementary social security. The basic social security is managed by the
Ministry. Compulsory social security is authorised by INSS, and the complementary
social security falls either under public or private management and is based on
regulations as approved by the Council of Ministers. It is a legal requirement to
register all employees, weather national or foreign, for social security. In case of a
foreign worker being registered in the social security system in their home country,
they do not have to be registered in Mozambique (upon proof). The monthly
contribution is 7% of a worker’s monthly salary of which the employer covers 4%
and the employee 3%. The employer has to withhold both shares and pay the
corresponding amount monthly to the INSS until the 10 th of the following month.
Employers have to establish a registrar of a number of documents required by the
Ministry of Labour. They cover:




Individual employee files;
List of employees by name;
Vacation plan;
Internal regulations.
The individual employee file has to contain (taken from ACIS, GTZ (2007), p. 52):
 A copy of the ID document;
 The employment contract;
 A copy of the INSS registration card;
 IRPS (personal income tax code) registration form;
 Results of medical examinations undertaken when admitted (and monthly ones
for employees in the food and beverage sector);
 The Letter or card issued by the Provincial Labor Department indicating that the
employee was unemployed before being hired by the company;
 Photos;
 Records of any disciplinary proceedings, or other documents (certificates,
training plans etc.).
Dispute resolution in the labour field is covered by a combination of laws. In
addition to the relevant provisions of the Labour Law (Articles 180-193), dispute
resolution is also regulated by the Labour Courts Law, and Law No. 11/99 of 8 July
(the “Arbitration Law”). In addition, the Labour Procedure Code (“Código do
Processo de Trabalho”), the Civil Procedure Code (“Código do Processo Civil”) and
the Civil Code (“Código Civil”) also apply.
Law No. 8/98 as well the Labour Law (Law No. 23/2007) grants women workers
maternity leave of 60 consecutive days which may begin 20 days before the
probable date of birth. If the woman or her child is hospitalized during after the birth
of the child, the maternity leave is considered to be suspended for as long as the
hospitalization continues. This only applies, however, if the employer is informed
about it in a timely manner. In addition, the father has the right to take paternity
14
Health
Corporate
VAT
Environmental
Safety
DTTs andIncome
Impact
leave of one day, every two years, and which
has to be taken on the day immediately
following the birth. The working father wishing
to take paternity leave has to inform his employer, in writing, either before or after
the birth.
The Labour Law of 2007 furthermore regulates employment of minors and
handicapped people, working hours and compensation for overtime or special
working time, leave regulation, disciplinary measures and procedures, collective
bargaining rights and instruments of collective bargaining, and strike procedures.
1.11
Business Taxation
The general corporate income tax (IRPC rate) is 32%, except for agriculture and
cattle breeding activities which shall benefit from a reduced tax rate of 10% until
the 31 December 2015.
The standard Value Added Tax (VAT) is 17% and a new system was developed in
2008. VAT is assessed on the c.i.f. customs value for imported goods originally.
Exempt from VAT are bread, bicycles, condoms, corn flour, corn, fresh and
refrigerates tomatoes, garlic, jet fuel, lamp oil, onion, powdered milk for children,
flour, salt, smoked fish, and wheat.
Mozambique has 9 Double Taxation Treaties (DTTs) in place (see table below
section 5).
1.12
Environment, Physical Planning,
Health & Safety, Consumer
Protection
The Law on Investment prescribes the conduction of Environmental Impact
Assessment (EIA) and other relevant studies evaluating any environmental impact,
pollution and sanitation concerns that may result from the investment activities in
article 26. Responsibility for this lies in the investor as well as then responsibility to
undertake appropriate measures for the prevention and minimisation of potential
negative effects. Law N⁰20/97, of 1 October, and its regulation, establishes the
regime of environmental licensing, based on assessing the environmental impact
of activities or undertaking of a particular scale and/or nature.
Occupational health and safety is firstly covered by Article 85 of the Constitution, at
a second instance by the Labour Law, and finally by a broad body of subordinate
legislation which dominantly is of colonial origin.
Mozambique is subscribed to the ILO Convention No. 17 which covers
compensation for workplace accidents, and ILO Convention No. 18 that stipulates
compensation for occupational illnesses. General worker conditions such as the
right to a fair wage, rest and vacation, the right to a safe and hygienic work
environment is provided under Article 85 of the Constitution.
1.13
Competition Policy & Law
In the process of developing a general policy on competition, Mozambique has
sought assistance of the Zambian Competition Commission. The policy was
developed in 2007 but the regulatory framework was still in discussion and
development.
15
The policy targets the possible existence of anti-competitive practices such as the
imposition of excessive prices, price discrimination, predatory pricing, refusal to sell
or to buy, conditional sales, as well as abuse of dominant positions, agreements
between companies designed to reduce the competition in the market, and
concentrations that impede competition. Anti-competitive practices are not explicitly
subject to remedy, but authorities may exert informal pressure on the enterprises
concerned by such a practice.
Several independent assessments identified that Mozambique could benefit from a
legal competition policy framework seen the rather small market and the high
concentration in the production of only few important products. Especially the sugar
sector operates as a cartel controlling production and distribution, and, thus, all
respective imports and exports.
1.14
PPP- Law on the Public and
Private Partnership
The Law N⁰ 15/2011, of 10th August, establishes the norms and guidelines of the
process of contracting, implementation and monitoring of public private
undertakings of large scale projects and business concessions.
The main purpose of the PPP Law approval is the establishment of a legal
framework which enables, on one hand, an increased involvement of the private
partners and investors in private and public partners, large scale projects and
business concessions and, on the other hand, an increased efficiency,
effectiveness and quality in the exploitation of resources and other national public
assets, as well as the efficient supply of goods and services to the society and
equitable sharing of the respective benefits.
Scope of the PPP Law
The present law has the objective of establishing the guiding norms of the process
of hiring, implementation and monitoring private and public undertakings (PPP),
large scale projects (PGD) and business concessions (CE).
Sectorial Responsability
PPP, PGP and CE are under the sectorial tutelage of the government entity
responsible for the sector or area concerned, and the functions and competences
of the sectorial tutelage on PPP, PGP and CE undertakings are complemented by
the competences of the respective regulatory body of the sector or subsector.
It is up to the regulatory authority, especially in the respective area of sectorial or
sub sectorial specialization to ensure the economic and financial equilibrium
between the contracting parties, the protection of user’s interests and maintenance
and sustainability of the undertaking.
Financial Tutelage
The financial tutelage of PPP, PGP and CE undertakings is exercised by the
government entity that supervises the area of finance, which must, for the purpose,
define and establish the mechanisms and procedures of permanent inter
institutional articulation with each entity responsible for the sectorial tutelage.
It is up to the government to designated and build capacity of the entity responsible
for the inter-sectorial coordination and centralization of the economic and financial
analysis and evaluation of PPP, PGP and CE undertakings, as well as for the
monitoring of an equitable sharing of benefits and prevention of risks in the referred
undertakings.
Legal framework of PPP contracting
16
Foreign Exchange
The general legal regime of the contracting of
PPP undertakings is that of public tender,
applying the rules that govern public contracting.
Considering the public interest and with all the legal requisites met, the PPP
contracting can follow the tender modality with prior qualification or tender in two
stages.
The proposals of PPP undertakings of private initiative are subject to public bidding
aimed at ascertaining the adequacy of the technical terms and quality, price and
other conditions offered by the proponent, with the enjoyment of the right and 15%
margin of preference in the evaluation of the technical and financial proposals
resulting from the tender and without the right to compensation for the costs
incurred in the proposal preparation.
Contract
The awarding of the PPP undertaking follows one of the following contractual
modalities:
 Concession contract;
 Exploration cessation contract;
 Management contract;
The concession contract can assume one of the following concession submodalities:
 Operate and Transfer;
 Design Build, Operate & Transfer;
 Build, Own, Operate and Transfer;
 DBOOT-Design, Build, Own, Operate and Transfer;
 Rehabilitate, Operate and Transfer; or
 Rehabilitate; Operate, Own and Transfer
1.15
Monetary Policy, Foreign
Exchange and Foreign Investors
The Bank of Mozambique (Banco de Mocambique, BoM) is operating as Central
Bank since its establishment in 1992. In June 2007, the BoM’s Monetary Policy
Committee was established which is now meeting monthly to discuss and provide
statements to the public in an effort for more transparency. End of 2008, the
currency was changed to the New Mozambican Metical which eliminated 3 digits of
the old currency.
According to Law No. 11/2009 of 11 March, all foreign exchange operations have
to be registered and authorised by BoM. Residents are allowed to hold foreign
exchange accounts in Mozambique and abroad. Repatriation of net profits and
dividends is also subject to authorisation by BoM. Article 14 of the Law on
Investment guarantees the remittance of funds abroad in connection with:
 Exportable profits resulting from investments eligible for export of profits under
the regulations of the Law;
 Royalties and other payments for remuneration of indirect investments that are
associated to the granting and transfer of technology;
 Amortization of loans and payment of interest on loans that are contracted in
the international financial market and apply to the respective investment
projects;
 Proceeds of any compensation paid in case of nationalisation or expropriation;
 Invested and re-exportable foreign capital, independently of eligibility of the
investment project to export profits under the regulations of the Law.
17
Industrial Property
IPI
All remittances have firstly to satisfy national tax
obligations and exchange formalities. The regulations of the Investment Law
approved by Decree No. 43/2009, of 21 August specify further in Article 34, that all
external remittance of profits and dividends is subject to the prior authorisation of
the BoM and have been previously registered with the Central Bank. Repatriation
of capital is permitted taken into account the provisions of specialised legislation.
1.16
Public Procurement
The Decree 54/2005 of 13 December which is also known as the Procurement
Regulation was introduced in 2005 and replaced by the Decree No. 15/2010 of 24
May which is regulating the contracting of public works, supply of goods and
provision of services to the State. It enabled a streamlining of procedures that had
previously been subject of various, and at times overlapping, pieces of legislation.
State procurement is now centralized in the Ministries of Finance and Public Works
and is in line with international norms and standards.
All public works, goods and services procured by the government at all levels
(national, provincial, district and municipal as well as companies in which the State
holds 100% of the capital, and where the financial activities of any of the
aforementioned entities are linked to the State budget) as well as procurement
undertaken using funds from donor governments has to be undertaken in
accordance with the requirements provided in the Regulation. It furthermore
regulates consultancies and concessions.
The responsibility for the oversight of the Procurement regulations has the Unit for
the Supervision of Acquisitions (Unidade Funcional de Supervisão das Aquisições
– UFSA). The Regulation requires in article 4 the adhesion to a number of
principles such as legality, public interest, transparency, openness, equality,
competitiveness, impartiality and sound financial management. The procurement
processes have to be decentralized wherever possible and must strive for optimise
the benefits of procurement like through collective purchasing.
Contracts are open to nationals as well as foreign bidders meeting the
requirements as set out in Decree No. 15/2010 of 24 May.
In addition to the Procurement Regulation, the Anti-Corruption law (Law 6/2004 of
17 June) is of importance in the process of fair procurement.
1.17
Intellectual Property
The industrial property regime in Mozambique is administered by the Instituto da
Propriedade Industrial (IPI) since May 2004. IPI is a self-financing autonomous
agency that operates under the technical responsibility of the Ministry of
Commerce and Industry. The copyright regime, however, is administered by the
National Institute of Books and Recordings (INLD), which is a division of the
Ministry of Culture.
Industrial Property is regulated under Decree No.4/2006 of 12 April. It covers
patents; utility models; industrial designs; marks; trade names and insignia of
establishments; appellations of origin and geographical indications; and logos,
accompanied in each case by a term of protection. The industrial property titles
have to be published in the Industrial Property Bulletin.
The law also provides for a compulsory licence which can be issued by the Minister
of Industry and Commerce which can be done for public interest and without the
18
Regional
Copyright
Law
International
on Investment
and
consent of the proprietor but with adequate
related rights
1993
remuneration. The first and only such license
was issued for the manufacture of antiretrovirals (ARVs) in 2004.
The General Inspectorate of the Ministry of Industry and Commerce is responsible
for the supervision of industrial property rights, in consultation with IPI.
The existing copyright regime with the Law No. 4/2001 of 27 February was adopted
in 2001 and covers artistic, literary, scientific work, and computer programs
explicitly identified as literary work. The term of copyright protection covers the life
of the author plus 70 years, a term of 50 years for performers’ rights and sound
recordings, and 25 years for broadcast programmes.
Mozambique recognised industrial property titles as secured through the regional
authorization ARIPO. IPI is also the relevant institution for applications under the
Patent Cooperation Treaty and for applications for international registration for
marks under the Madrid Agreement.
Mozambique is member of the World Intellectual Property Organization (WIPO)
since December 1996. In addition, it has signed the Paris Convention for the
Protection of Industrial Property, the Madrid Agreement (International Registration
of Marks), and the Madrid Protocol in 1998. Mozambique also acceded the Patent
Cooperation Treaty (PCT) in May 2000 and the Nice Agreement (Classification of
Goods and Services) in 2002. Since May 2000, Mozambique has furthermore been
a member of ARIPO (African Regional Intellectual Property Organisation).
1.18
Investment Protection and
Dispute Settlement
Article 13 of the Law on Investment, 1993, states the following concerning the
protection of property rights.
“1. The Government of Mozambique shall guarantee the security and legal
protection of property on goods and rights, including industrial property rights,
comprised in the approved investments carried out in accordance with this
Law and its Regulations.
2. When deemed absolutely necessary for weighty reasons of national interest
or public health and order, the nationalization or expropriation of goods and
rights comprised in an approved and realised investment under this Law shall
be entitled to just and equitable compensation.
3. In the event of any complaint submitted by an investor under the terms
regulated by the Council of Ministers not being resolved within a period of
ninety (90) days, and when such fact has led the investor to incur in financial
losses on the invested capital, the said investor shall have the right to a just
and equitable compensation for such losses incurred and which are of evident
responsibility of Government institutions.
4. For the purpose of determining the value of compensation or remuneration
to be paid under paragraphs 1 and 2 of this Article, the evaluation of goods
and/or rights nationalised or expropriated, including financial losses suffered
by an investor which are of evident responsibility of Government institutions,
will be carried out within ninety (90) days by a team especially appointed or by
an auditing company of recognised expertise and competence.
5. The payment of the compensation or remuneration referred to in the
preceding paragraphs of this Article shall take place within ninety (90) days
counted from the date of acceptance by the competent Government authority.
The time for assessment for decision making on the evaluation made and
submitted to the competent Government authority shall not exceed forty-five
19
US market
Dispute
MIGA
Regional
Arbitration
Settlement
access (45) days counted from the date on which the
Agreements
evaluation dossier was submitted and
received.”
Mozambique is member of the Multilateral Investment Guarantee Agency (MIGA)
which offers investor guarantees for non-commercial risks.
In case of disputes on the interpretation and application of the Investment Law
which cannot be resolved on a friendly basis or by negotiation shall be submitted to
the judicial authorities according to Article 25 of the Law on Investment. Disputes
between then foreign investor and the Government that cannot be resolved by
national jurisdiction is then entitled to resolution through international arbitration
such as:
 The rules of the International Convention for the Settlement of Investment
Disputes (ICSID);
 The ICSID Additional Facility in case the investor does not fulfil the
requirements of Article 25 of the ICSID Convention, or
 The rules of arbitration of the International Chamber of Commerce which is
based in Paris.
Furthermore, the Centre for Arbitration, Mediation and Conciliation (CAMC) was
created in 2002 and provides dispute resolution services to individuals on
commercial maters.
1.19
International Agreements and
Obligations – Trade and other
Agreements, BITs, DTTs
Mozambique is member of the WTO and recognized as Least Developed Country
(LDC). As such, it qualifies for preferential market access to the EU under the
Everything But Arms (EBA) Initiative. Mozambique is in the SADC group for EPA
negotiations with the EC.
Mozambique is member of the World Customs Organisation (WCO).
Mozambique is a founding member of the African Union (AU) and is part of the
New Partnership for Africa’s Development (NEPAD). In 2004, it joined the NEPAD
African Peer Review Mechanism (APRM), a self-monitoring mechanism adopted by
member countries to enhance good governance and the exchange of experience.
The first review is still to come.
Agreements with the US contain the AGOA and its Generalised System of
Preferences (GSP) for quota-free and duty-free access to the US market, and the
Trade and Investment Framework Agreement (TIFA) on bilateral consultation on
trade and investment matters. Furthermore, Mozambique qualifies for support of
the Millennium Challenge Corporation which is operating project funding as
Millennium Challenge Account (MCA) since 2009.
4
SADC RELATED ISSUES
Mozambique is one of the founding members of SADC when it was first establish
in 1992 as Southern African Development Coordination Conference (SADCC). The
Regional Indicative Strategic Development Plan (RISDP) entails clustering of
national programmes in key areas to promote integrated national policy-making.
Under this integrated focus, Mozambique started to develop “corridors”. In terms of
trade, Mozambique plays a significant role for its land-locked neighbour states
20
Zimbabwe, Zambia and Malawi. The port of Beira is an important access for both
Zimbabwe and Zambia, Nacala port in the North of Mozambique for Malawi and
Zambia. Important infrastructure improvement projects have recently been
launched by the ministers of Zambia, Malawi and Mozambique developing
transport corridors from the respective ports.
The 2008 WTO Trade Policy Review acknowledges that Mozambique aims to
deepen trade and investment ties with partners in the SADC region through the
Regional Indicative Strategic Development Plan (RISDP).
21
Double Taxation
Bilateral
Investment
Treaties
Agreements
Bilateral Investment Treaties with Mozambique as of 1 June 2010
Partner Country
Date of signature
Date of Entry into
force
1
Algeria
12-Dec-98
25-Jul-00
2
Belgium
and 18-Jul-06
01-Sep-09
Luxembourg
3
China
10-Jul-01
26-Feb-02
4
Cuba
20-Oct-01
26-Feb-02
5
Denmark
12-Oct-02
30-Dec-02
6
Egypt
08-Dec-98
25-Jul-00
7
Finland
03-Sep-04
21-Sep-05
8
France
15-Nov-02
06-Jul-06
9
Germany
06-Mar-02
15-Sep-07
10
India
19-Feb-09
11
Indonesia
26-Mar-99
25-Jul-00
12
Italy
14-Dec-98
17-Nov-03
13
Mauritius
14-Feb-97
26-May-03
14
Netherlands
18-Dec-01
01-Sep-04
15
Portugal
28-May-96
31-Oct-98
16
South Africa
06-May-97
28-Jul-98
17
Sweden
23-Oct-01
01-Nov-07
18
Switzerland
29-Nov-02
17-Feb-04
19
United Arab Emirates
24-Sep-03
20
United Kingdom
18-Mar-04
12-May-04
21
United States
01-Dec-98
03-Mar-05
22
Vietnam
16-Jan-07
29-May-07
23
Zimbabwe
12-Sep-90
24
Spain
18-Oct-10
Double Taxation Agreements with Mozambique as of 1 May 2012
Partner Country
Type of Agreement
Date of Signature
1
Mauritius
Income and Capital
14-Feb-97
2
Portugal
Income and Capital
21-Mar-91
3
South Africa
Income
18-Sep-07
4
United Arab Emirates
Unspecified
24-Sep-03
5
Macau
Income and Capital
15-June-07
6
Botswana
Income and Capital
27-Sep-09
7
India
Income and Capital
30-Sep-10
8
Vietname
Income and Capital
03-Sep-10
9
Italy
Income and Capital
14-Dec-98
Sources included
ACIS, SAL & Caldeira & GTZ (APSP) (2007) Legal Framework: For Employment in
Mozambique, Edition I, September 2007
ACIS, Ministry of Finance of Mozambique & GTZ (APSP) (2008) Legal Framework:
For Procuremoent of Public Works, Goods and Services by the Government of
Mozambique; Edition I, August 2008
CPI (2010) website including all revelant information
22
CUTS International (2006) Competition Regimes in the World – A Civil Society
Report
Government of Mozambique: Diverse legislation
ICC (2001) An Investment Guide to Mozambique: Opportunities and Conditions,
June 2001
UNCTAD (2010) Bilateral Investment Treaties and Double Taxation Treaties,
http://www.unctad.org/Templates/Page.asp?intItemID=4505&lang=1
World Bank (2010) Doing Business Report 2010, www.doingbusiness.org/
World Bank (2010) Investing Across Bordern 2010: Indicators of foreign direct
investment regulation in 87 economies, http://iab.worldbank.org
WTO (2008) Trade Policy Review, Mozambique, Report by the Secretariat,
http://www.wto.org/english/tratop_e/tpr_e/tp309_e.htm
23