In a landmark decision by parliament last week, Mozambique approves new private investment law with a final and unanimous approval to the legislation, signalling a significant step towards enhancing the country’s attractiveness for both domestic and foreign private investment.
The legislation, championed by the government, is part of President Nyusi’s PAE (Economic Acceleration Package) launched on August 2022 and aims to create a more favourable environment for economic growth and development. Silvino Augusto José Moreno, Mozambique Ministry of Industry and Commerce, issued a statement, emphasising the need of aligning the legal framework with other business and investment-related legislation, considering the evolving dynamics of the Mozambican market. After 30 years of implementation, this revision serves to modernize and harmonize the country’s investment laws, creating an environment conducive to sustainable economic growth.
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This progressive legislation introduces a range of stimulating measures that have been unveiled gradually since August 2022. Notably, waving entry visas for 29 countries efective May 1st, further encouraging foreign investors to explore business opportunities within the country.
The new law encompasses various innovative provisions designed to support responsible investment practices and streamline investment processes. It explicitly outlines the social responsibility of investors, emphasizing the importance of sustainable and inclusive business operations. Additionally, the law establishes different investment regimes, offering flexibility in registration procedures, either through a simplified regime or an authorization-based approach.
In line with the PAE (Economic Acceleration Package), the legislation includes mechanisms to ensure transparency and accountability. It introduces provisions outlining the justification of refusal acts and regulates the procedures for filing complaints, handling appeals, and addressing any potential infractions. By promoting a fair and predictable investment environment, these safeguards aim to foster investor confidence and bolster Mozambique’s economic landscape.
A milestone for Mozambique’s economic trajectory
By revamping its investment framework, Mozambique reinforces its commitment to further stimulate private investment, both from within the country and abroad. As the country paves the way for increased business opportunities, it is readying to position itself as a more attractive investment destination with untapped potential.
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Market observers anticipate an increase in private sector participation across various industries, particularly considering the imminent resumption of TOTAL ENERGIES LNG project and other PAE (Economic Acceleration Package) measures aimed at creating a better business environment for investors. While there are no short of challenges, Mozambique’s progressive reforms to attract investment are expected to help propel its economy and contribute to the country’s long-term growth and macro-economic sustainability.
