Facilitates foreign hire to encourage FDI
17 Dec 2024
On 17 December 2024, Mozambique issued Decree No. 88/2024, which aims to encourage foreign investors by facilitating the hiring of foreign employees. Main changes include:
- Streamlined work authorization process: The Government has set a 15-day deadline for processing work permit authorization requests (Article 6).
- Foreign workers can now be hired under four regimes—authorization, quotas, investment projects, and short-term work, providing more options for businesses (art. 4). Projects approved by the Government can have customized quotas, allowing investors to hire more foreign workers if needed (art. 13) and a short-term work regime (up to 120 days per year) is now formally recognized, enabling quick employment of foreign specialists for temporary assignments (art. 17).
- A clearer and more predictable quota system specifies different quotas, namely (i) for large employers, i.e. more than 100 workers, 5 per cent foreign workers, (ii) for medium employers, i.e. 31–100 workers, 8 per cent, (iii) for small employers, i.e. 11–30 workers, 10 per cent; and for micro employers, i.e. less than 10 workers, 15 per cent (art. 9 & 10).
- Shareholders, directors, and representatives of foreign companies are exempt from the requirement of proving the unavailability of local talent (art. 3 (1)). Also, executives and senior managers can move between company branches freely without requiring a new authorization (Article 31).
- A portion of the fees paid by companies for foreign worker permits (10 per cent) will go towards employment promotion initiatives (art. 36).
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Type:
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Treatment and operation (Operational conditions)
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Promotion and facilitation (Investment facilitation )
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Industry:
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