Issued new Regulations for its Private Investment Law 2023

07 Mar 2024

On 7 March 2024, Mozambique issued a new Regulations for the Private Investment Law 2023. These Regulations outline the procedures for approving and carrying out private investments in Mozambique and providing tax and non-tax guarantees and incentives. They apply to all economic ventures, including domestic and foreign private investments, public-private partnerships (PPPs), large-scale projects and business concessions.

Major changes introduced by the Regulations include:

• Investment Proposal Registration: Requires submission of a completed and signed form in triplicate, along with the necessary documents; • Proposal Analysis: Must be completed within a maximum of two days from the receipt of the proposal;

Decision-making bodies: • Provincial Governor: Authorized to decide on projects up to MZN 3.5 billion (about $55 million); • General Director of the Investment and Export Promotion Agency (APIEX): Authorized to decide on projects up to MZN 6.5 billion (about $102 billion); • Minister of Finance: Authorized to decide on projects up to MZN 32 billion ($503 million); • Council of Ministers: Authorization required for projects exceeding MZN 32 billion ($503 million).

In terms of the Investment Regulations, the minimum amount of FDI for the purpose of transferring profits and exporting the invested capital abroad was reduced from MZN 7,500,000 ($117,939) to MZN 6,500,000 ($102,232). FDI requires registration under exchange control legislation in force and the export of profits and invested capital requires proof of registration.

The Regulations do not apply to the regime applicable to Special Economic Zones, Industrial Free Zones and Integrated Tourism Resort Zones.