Mozambique approved a new amendment to the Investment Law Regulation
The Mozambican Investment Law Regulation has been amended by Decree no. 20/2021, entering into force on April 13. In general, the procedure has been simplified and We highlight the following amendments:• For purposes of transfer of profits and invested capital to other countries, the minimum amount of direct foreign investment resulting from equity capital is of MT 7,500,000.00.• The value of annual exports considered for the suitability of transferring profits and invested capital to foreign territory is of MT 4,500,000.00.• Investment project proposals must be sent to the Mozambican Agency for the Promotion of Investment and Exports (“APIEX”) in four copies, drafted in the official application form, and accompanied of the documents needed for the analysis.• Depending on each case, the investment project proposals shall be accompanied of documents as lease contracts, property titles or professional internship and Mozambican workforce employment plans (for local content purposes).• Decisions from the Provincial Secretary of State, APIEX General Director, and Finance Minister, shall be performed until three workdays after the reception of the proposal.• APIEX shall inform the investors of the decision, until 48 hours after it.• The decision regarding investment projects may be performed by the Provincial Secretary of State (direct Mozambican investment up to MZN 4,500,000,000.00), by the APIEX General Director (Mozambican or foreign investments up to MZN 7,500,000,000.00 and projects for Economic Special Zones or Industrial Free Zones), by the Finance Minister (Mozambican or foreign investments up to MZN 37,500,000,000.00) or by the Ministers Council (investments of more than MZN 37,500,000,000.00 or projects with foreseeable social, political, economic or environmental implications whose decision shall be made by this entity).• Investors may assign totally or partially their rights regarding an investment, through duly based request to the entity which approved the project. The request shall be accompanied of tax compliance proofs.• Companies with headquarter in Economic Special Zones need to request authorization to hire foreign employees and shall register them with the entity which supervises the Employment sector.
Source: Further Africa