Investing in Mozambique


The Republic of Mozambique has established a specific framework for the realization, in Mozambican territory, of ventures that involve national or foreign private investments.


To benefit from investment incentives under the Investment Law and Investment. Law Regulations, foreign investment must meet any of the following requirements:

• Comprise FDI to be effected by way of equity contributions (including shareholder loans) to an amount of at least MZN2.5 million (approximately $84,000);

• Relate to an economic activity with a projected turnover of at least MZN7.5 million ($250,000) from and after the third year of commercial activities;

• Relate to an economic activity with projected annual exports of goods or services of at least MZN1.5 million ($50,000); or

• Relate to an economic activity that will create long-term employment for at least 25 Mozambican workers.

The Investment Promotion Centre (CPI) is the Mozambican government authority responsible for promoting, approving, and monitoring foreign investment in Mozambique. Although the CPI receives investment applications and coordinates the approval of the same, it may not be responsible for approving the relevant investment project.

The Minister for Planning and Development is responsible for approving investment projects worth between MZN2.5 billion and MZN13.5 billion ($84 million-$450 million). The Council of Ministers is responsible for approving investment projects greater than MZN13.5 billion.


(a) Protection of foreign investor property rights

The government guarantees to respect and recognize foreign investors’ property rights, including any intellectual property rights. The state undertakes not to expropriate the assets or rights of a foreign investor unless required for legitimate public interest considerations and against payment of fair and equitable compensation. To the extent that foreign investors are unable to transfer funds and such inability is not remedied within 90 days, the state will indemnify the foreign investor in respect of any financial losses suffered by it.

(b) Right to export funds

The state guarantees the right for foreign investors to export amounts invested, profits, loan repayments, royalties, or other profits resulting from indirect investments (such as the granting of licenses). To export funds, foreign investors must ensure they have paid all applicable taxes (among other things), as evidenced by a tax compliance certificate (Quittance Certificate). Foreign investors will also have to comply with exchange laws.

Tax incentives under the Fiscal Benefits Code

The Fiscal Benefits Code includes a generic tax incentives regime and a specific tax incentives regime. The latter regime applies to certain types of investments only. The generic and specific tax incentives regimes are alternatives, and not cumulative. Therefore, if an investment is subject to a specific tax incentives regime, the generic tax incentives regime will not apply to it.

(c) Generic tax incentives

VAT and customs duties exemption.

Exemption from customs duties and VAT in respect of goods (brand new) falling within “Class K” of the Mozambican Customs Tariff Book (including any related equipment and accessories) during the first five years of implementation of the investment project. Goods falling within “Class K” are those that constitute capital assets.

IRPC tax deductions.

Deductions on IRPC during the first five tax years to an amount corresponding to:

5% of the investment value for projects undertaken in Maputo; and (ii) an amount to be agreed on a case-by-case basis between 1%-10% of the investment value for projects undertaken outside Maputo. Tax deductions not used in full during a tax year can be carried forward, but will expire if unused by the fifth tax year; up to 10% of amounts invested in equipment using new technology; and up to 5% of amounts invested in training Mozambican workers (or 10% of amounts invested in training Mozambican workers if the training relates to the use of new technology).

Accelerated amortization of investment.

50% increase in the rate at which investment in new buildings can be amortized. Amounts amortized are tax deductible for IRPC purposes.

Additional costs for tax purposes.

Treatment as costs for tax purposes of amounts invested in the construction or refurbishment of roads, railways, airports, postal services, telecommunications, water supply, electricity supply, schools, hospitals and other public utility assets up to (i) 110% of amounts invested in projects in Maputo and (ii) 120% of amounts invested in projects outside Maputo; and 50% of amounts invested in the purchase of Mozambican cultural heritage assets.


Special investment incentive regimes also apply to special economic zones. Mozambican law recognizes two main types of special economic zones: special economic zones (ZEE) and industrial free zones (ZFI).

A special form of economic zone applies to the tourism industry.

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