Benefits of the Investment Law in Mozambique

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Mozambique just like the other countries is a country that is undergoing several changes, especially in the commercial area. In order to face these transformations, the Mozambican State makes available in its normative framework the Investments Law and through its Regulation, measures that aim to simplify the implementation of the implementation of the standards it provides for.
Law 3/93 of June 24, 1993, approves the Investment Law in Mozambique, which applies under the terms of Article 3 of the same law, to investments of an economic nature carried out on Mozambican territory and which intend to benefit from the guarantees and incentives therein, as well as for investments carried out in industrial free zones and special economic zones, with the exception of:

  • Area of prospecting, research and production of oil, gas and mineral resources extraction industry;
  • Financed by funds from the state budget;
  • Of an exclusively social nature.

The areas of investment reserved for the public sector, with or without private sector participation, are the following:

  • Electric power production for public consumption;
  • Public water supply for domestic and industrial purposes in urban centers;
  • Operation of postal services and public telecommunications services;
  • Development and operation of national, marine or land-based parks, and other areas protected by law;
  • Production, distribution and sale of arms and munitions


Forms of direct national investment

It may take any of the following forms, singly or cumulatively, provided that they are capable of monetary evaluation:

  1. Cash;
  2. Infrastructures, equipment and their accessories, materials and other goods;
  3. Assignment of exploitation rights on concessions, licenses and other rights of an economic, commercial or technological nature;
  4. Assignment, in specific cases and on terms agreed and sanctioned by the competent authorities, of rights to use land, patented technologies and trademarks, the remuneration for which is limited to participation in the distribution of the profits of the undertaking, resulting from the activities in which such technologies or trademarks have been or are applied.


Forms of foreign direct investment

It may take any of the following forms, singly or cumulatively, provided that they are capable of monetary evaluation:

  1. Freely convertible foreign currency;
  2. Equipment and its accessories, materials and other imported goods;
  3. Assignment, in specific cases and on terms agreed and sanctioned by the competent authorities, of the rights to use patented technologies and trademarks and whose remuneration is limited to participation in the distribution of the profits of the company resulting from the activities in which such technologies or trademarks have been or are applied.

  4. Forms of indirect investment

    Article 10 of the law under review states that indirect investment, whether domestic or foreign, includes both separately or cumulatively:

    • Loans, shareholder loans, supplementary capital payments;
    • Tecnologia patenteada, processos técnicos, segredos e modelos industriais franchising;
    • Patented technology, technical processes, secrets and industrial franchising models;
    • Trademarks, technical assistance and other forms of access to use or transfer of technology;
    • Trademarks whose access to its use is on an exclusive or restricted licensing basis by geographical areas or domains of industrial and/or commercial activity.


    REQUIREMENTS TO QUALIFY FOR GUARANTEES AND INCENTIVES PROVIDED FOR IN THE INVESTMENT LAW

    In order for a foreign investor, whether an individual or a legal entity, to benefit from the guarantees and incentives provided for in the Investment Law, it is necessary that – the minimum amount of foreign investment, resulting from the contribution of equity capital, which includes shareholder loans or additional capital, as well as the reinvestment of exportable profits, is at least MZM 2.500.000,00 (approximately 56.685,75 euros or 78. 123,98); – if the investment is made through the import of equipment, machinery and other tangible goods, the investment values will be the cost, insurance and charter prices of these goods; – or that the activity meets one of the following requirements: a) from the third year of activity it generates an annual sales volume of not less than 7.500.000,00 MZM (approximately 170057,25 euros, or 234.371,95 USD); b) annual exports of goods or services reach a minimum value of 1.500.000,00 MZM (approximately 34.011,45 euros or 46.874,39 USD); c) create and maintain direct employment for at least 25 national workers, registered in the social security system from the second year of activity.

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RECOVERY OF COMMERCIAL ENTREPRENEURS AGAINST COVID-19

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The economic impacts of the new Coronavirus pandemic (SARS-CoV-2 – Covid 19), propagation although with consequences whose exact extent is not yet possible to anticipate, predict a serious global economic crisis, with implications for the national and multinational business.
The Mozambican legal system has on it´s legislative range Decree-Law No. 1/2013 of 4 July, which approves the legal regime of Insolvency and the Recovery of Business Entrepreneurs, the same document aims to regulate the legal regime of Insolvency and Commercial of Entrepreneurs Recovery, making it possible to overcome the situation of impossibility of fulfilling obligations overdue by commercial entrepreneurs and other entities in order to allow the maintenance of the source of employment of workers and the interests of creditors, thus promoting the stimulation and preservation of economic activity and it’s social function as set out in it’s article one.
This regime applies with the necessary adaptations to Associations, Foundations, Civil Societies, Cooperatives and Persons.
The deferring of the judicial recovery request suspends the course of the statute of limitations and all actions and executions against the debtor, including those of the private creditors of the solidary partner and the tax enforcement proceedings. According to numbers 1 and 8 of article 6 of the Decree under analysis.
The article 47 premise that the judicial recovery reorganization is to make it possible to overcome the situation in which the debtor’s overdue obligations cannot be fulfilled. To this end, the debtor may request the recovery to be done if at the time of the request he provides his activities regularly for longer than 12 months and proves that:

• Do not be insolvent and if so, have your declarations be extinguished by a final judgment;

• Haven’t been granted judicial recovery for less than 2 years;

• Haven´t been convicted or does not have, as administrator or dominant partner, a person convicted of any of the crimes provided for in articles 167 to 173.
It´s consecrated as means of recovery by article 49 of Decree-Law No. 1/2013 of 4 July, as follows:

• The granting of special terms and conditions for payment of overdue or expired obligations;
• The fusion, merger or transformation or transfer of shares, respecting the rights of the partners, under
the terms of the current legislation;

• Partial sale of assets;

• The payment assets or novation of debts of the liabilities, with or without constitution of own or third
party guarantee.

• New Shareholder aceptance;

• he wage reduction, hours’ compensation and working hours’ reduction by collective agreement or con
vention;

• A redução salarial, compensação de horários e redução da jornada, mediante acordo ou convenção
colectiva;

• The wage reduction, hours’ compensation and working hours’ reduction by collective agreement or
convention;

• New share bonds;

Accept the request for judicial recovery, the recovery plan must be submitted within 90 days from the date of publication.
It is important to mention that the debtor who intends to resort to the recovery regime, can do so extrajudicial, as long as he fulfills the same requirements for the judicial recovery mentioned above.
Accepted the request for judicial recovery, the recovery plan must be submitted within 90 days from the date of publication.
It is important to refer if the debtor want intends the recovery regime, can do it extrajudicially, as long as he fulfills the same requirements for the judicial recovery mentioned above.

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IMPLICAÇÕES DA ECLOSÃO DO COVID- 19 PARA A ECONOMIA MOÇAMBICANA

A pandemia do COVID 19 tem devastado o País e ao Mundo,

Nome do Autor Teste

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No dia 22 de Março de 2020, Moçambique passou a fazer parte da lista de países com casos confir­mados da doença provocada pelo novo coronavírus. A forma fréne­tica como o vírus se propaga, levou a que no dia 11 de Março, a Orga­nização Mundial da Saúde (OMS), declarasse a doença provocada pelo coronavírus (COVID-19) como uma pandemia.

 

A eclosão desta pandemia tem implicações não só na saúde pública como também na economia, pois uma das medidas para conter a propagação do vírus envolvem a restrição da circulação de pessoas e bens, facto que reduz a actividade económica nesses lugares e as suas relações comerciais com o mundo, Moçambique não é excepção!

 

A sua integração nas estatísticas com casos positivos confirmados suscita, pelo menos, uma questão principal que constitui objecto de análise:

Qual é o impacto económico que se pode esperar desta pandemia?

Importa fazer menção que, o ano de 2019 foi influenciado pela desacele­ração da actividade económica causada pela pas­sagem dos ciclones Desmond, Idai e Kenneth, que afectaram as regiões Centro e Norte do país. Como consequência destes fenómenos, o país deparou-se com a redução das receitas fiscais, a redução dos fluxos do Investimento Directo Estreangeiro (IDE) e a redução do volume das importações e expor­tações, que em conjunto, reduziram o crescimento económico.

 

Com a eclosão planetaria do COVID-19 espera-se que Moçambique a semelhança dos outros paises sofra uma estagnação economica, isto é, de acordo com as previsões do Governo o seu PIB seja de 2.2% em 2020 contra os 3.4 % de 2019 ser influenciado

pelo desempenho positivo esperado nos sectores da Indústria de Extracção Mineira (1,5%), da Agricultura (1,8%), das Pescas (1,0%), da Saúde e Acção Social (2,0%), da Educação (0,8%) e da Administração Pública (2,0%).

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