Mozambique has approved the Regulation of the Private Investment Act, already into force, revoking the previous Regulations of the Investment Law, , according to official legal database Legis-PALOP+TL.
From 7 March 2024, the approval and conducting of private investments in Mozambique, eligible for tax and non-tax guarantees and incentives, is subject to the new regime applicable to all undertakings of an economic nature that are carried out in Mozambican territory, which are likely to benefit from guaranteed and incentive of a tax or not tax nature, applicable, in accordance with the law, namely:
⦁ Domestic and foreign private investments; and
⦁ The undertakings of public-private partnerships, large-scale projects and business concessions.
The minimum value of foreign direct investment, resulting from the investor’s own capital contribution, is set at the equivalent of 6.500.000 Metical (about USD 100.000), for the specific purposes of transferring profits abroad and the invested and re-exportable capital.
The processing of investment proposals shall be subject to the following rules according to the type, namely:
⦁ Regime of mere registration:
⦁ Presentation of the investment proposal, in physical or digital format, for the purposes of registration and awarding tax incentives and other applicable benefits;
⦁ After completion of the conformity assessment of the application for mere registration, the investment certificate is issued;
⦁ The decision on requests for merely investment registration shall be made within three days of receipt of the file by the following decision-making entities:
Province Governor – Up to 3.500.000.000 Meticals (about USD 55 000 000)
APIEX Director General – Up to 6.500.000.000 Meticals (about USD 100 000 000)
Minister overseeing the area of Finance – Up to 32.000.000.000 Meticals (about USD 500 000 000)
Authorization regime:
⦁ The application for investment authorization is made by submitting the technical and economic-financial feasibility study prepared in accordance with the model itself, in four copies, and should contain information demonstrating the sustainability of the project, namely the respective investment and financing plans, accompanied by the necessary documentation for the proof of the planned investments;
⦁ The investment authorization is approved through a Resolution of the Council of Ministers or a Decree of the Minister overseeing the area of Finance, depending on the cases:
– Minister who oversees the area of Finance through Dispatch, within a maximum period of seven days: Investment projects that have the object of the industrial processing of mining and/or petroleum products, as well as investment projects whose activity has predictable implications of economic order, environment, safety or public health;
– Council of Ministers through Resolution, within a maximum period of thirty days: investment projects worth more than 32.000.000.000 Meticals (about USD 500 000 000); undertakings of public-private partnerships and business concessions; investment projects requiring land extension of an area equal to or greater than 10 000 hectares; and
investment projects requiring forest grant of an area exceeding 100 thousand hectares.
Where reasonable circumstances so require, and at the express and duly justified request of the respective investor or his legal representative, the terms and conditions of the investment authorisation may be amended by the competent decision-making authority, and also, in the case of investment projects under the regime of mere registration, the conditions set out in the investment certificate.
