THAT’S THE LAW
TBY talks to Eduardo Alberto Calú, Managing Partner of SAL & Caldeira Advogados, on upcoming changes to local legislation, the firm's competitive advantage, and working with foreign clients.
BIOGRAPHY
Eduardo Alberto Calú is the partner responsible for the tax practice group at SAL & Caldeira Advogados. He advises national and international clients on matters ranging from tax compliance and structuring, to collective bargaining and labor discipline. He has been extensively involved in the reform of the tax framework for the oil and gas and mining sectors in Mozambique, representing industry interests. He is also a university lecturer in criminal law and criminal procedure.What legal and regulatory changes are we likely to see in Mozambique in the medium term?
One of the important legal changes SAL & Caldeira Advogados expects is new legislation on local content, particularly in the extraction industry, with the inflow of oil and gas projects. The government is keen to create a framework under which Mozambicans are given an opportunity to participate in these projects. There is also the matter of social responsibility, which is becoming increasingly important. There may be some development of legislation in this area. Another important topic is competition and there is a new legal and institutional framework for that. The Competition Regulatory Authority is not yet operational, but we expect it to be in the near future. There is a draft bill for transfer pricing that has been under discussion with the private sector and other stakeholders for some time now. We expect that draft bill to be approved probably in 2016. In the land sector we have a draft bill for new regulations for the assignment of exploitation rights that will again probably be approved later in 2016. In addition, we have some draft special regulations under our labor laws that we expect to be approved in the near future. Mozambique's new insolvency law has also been approved; however, there are some regulations dealing with insolvency practitioners and their fees that still need to be passed. Finally, there is a draft bill for public participation in the legislative process. This is an important piece of law because it is crucial ensure that the private sector is consulted over new legislation, especially when it affects their business sector. This may also be approved in the near future.
What should foreign companies looking to invest in Mozambique be aware of before engaging in their start-up phase here?
Companies should first look for legal advice to better understand the general legal, regulatory, and institutional framework applicable to their business sector, especially in matters such as taxation, employment, and foreign exchange. They should also seek assistance in terms of a market review in order to understand the market, and seek assistance for designing their business plan. Once they have all that I believe they will be prepared to start the incorporation phase and the project will go more smoothly.
What would you say sets SAL & Caldeira Advogados apart from similar law firms in Mozambique?
SAL & Caldeira Advogados is a national, full-service law firm that combines local experience with international best practice to offer high-quality services to its clients both for domestic and international transactions. We are structured into eight specialized practice areas where we have motivated and very capable teams, namely corporate and commercial, banking and foreign exchange, labor, tax, litigation, immigration, natural resources, and administrative law. As a firm we work as a one-stop shop. We advise clients from the inception phase and continue assisting them throughout the life of their projects. We are also members of the DLA Piper Africa Group, which gives us access to comparative law and expert knowledge and training and international best practice in different practice areas. We also have offices in Tete and Pemba, which means we can serve our clients in the central and northern regions of the country.
How do you cater to foreign corporate clients?
We try to understand our clients' businesses and the issues and challenges they face. This way we can come up with tailored solutions to their problems. Apart from that, we have a combination of in-depth knowledge of the legal system, institutions, and policies of the country, and a well-trained and motivated team of lawyers with experience in areas relevant to our clients. When we have clients with multi-jurisdictional transactions or matters that touch on jurisdictions other than Mozambique, we can always work with DLA Piper Africa or its member firms in other countries to give our clients assistance from one firm, but using multi-jurisdictional resources.
THAT’S THE LAW
TABLE OF CONTENTS
Review: Economy
Much to Gain
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Foil Plans
Mozambique is the second-largest producer of aluminum in Africa and the 14th in the world. Since 2000, it has been producing aluminum for export, and in 2015 Midal Cables opened a factory near Mozal; the country's largest aluminum smelter. This could be the start of a Mozambican aluminum value chain.
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Ben James, Managing Director, Baobab Resources
TBY talks to Ben James, Baobab's Managing Director, resident in Mozambique. A geologist by training, Ben has been directly involved with the development of the Company's Tete Project from a greenfields iron ore discovery to an asset on the verge of corner-stoning Mozambique's nascent steel industry.
read articleFocus: Aluminum
Aluminum Legacy
Mozambique is the second-largest producer of aluminum in Africa and the 14th in the world. Since 2000, it has been producing aluminum for export, and in 2015 Midal Cables opened a factory near Mozal; the country's largest aluminum smelter. This could be the start of a Mozambican aluminum value chain.
read articleInterview
Hon. Jorge Olívio Penicela Nhambiu, Minister, Science and Technology, Higher and Technical Vocational Education (MCTESTP)
TBY talks to Hon. Jorge Olívio Penicela Nhambiu, Minister of Science and Technology, Higher and Technical Vocational Education (MCTESTP), on bringing science and technology to rural areas and increasing research in the country.
read articleFocus: E-government + E-bau
Digital Decisions
Between 2015 and 2016, Mozambique fell five positions in the World Bank's Ease of Doing Business Index. The government is investing in the GovNET and e-BAU platforms to facilitate procedures and cut the costs of acquiring business licenses and improving services provided to the public.
read articleReview: Health
Time for a check-up
Mozambique's healthcare budget rose to $561.5 million in 2015, an increase of 1.1% on expenditure in 2014, accounting for 10.2% of the state budget. Total healthcare expenditure in 2014 was $477.5 million. The Ministry for Health oversees the sector and is responsible for setting the budget each year.
read articleInterview
Dr. João M. Carvalho Fumane, Director General , Hospital Central de Maputo (HCM)
TBY talks to Dr. João M. Carvalho Fumane, Director General of Hospital Central de Maputo (HCM), about the range of services on offer and what is being done to further excellence in the health sector
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Hon. Jorge Ferrão, Minister, Education and Human Development
<span style="line-height: 1.6em; background-color: initial;">TBY talks to Hon. Jorge Ferrão, Minister of Education and Human Development, on the goals of the ministry, the role of local languages, and tackling teacher absenteeism.</span>
read articleInterview
Prof. Doctor João Leopoldo da Costa, Rector, Instituto Superior de Ciências e Tecnologia de Moçambique (ISCTEM)
TBY talks to Prof. Doctor João Leopoldo da Costa, Rector of Instituto Superior de Ciências e Tecnologia de Moçambique (ISCTEM), on the perils of the internet on education and the quality of its high school.
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Mozambeach
With white-sand beaches, scuba diving, and game reserves among its wide range of accommodation, Mozambique is a goldmine for tourism. However, to attract the number of tourists the country is aiming for, and entitled to, it will have to compete with its considerably more popular neighbors.
read articleReview: Legal
Smart Choices
Foreign investments are sources of capital, foreign exchange, and technical know-how for developing countries such as Mozambique. Over the past three decades, Mozambique has been successfully striving to ensure a favorable legal framework for foreign private investment.
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