National and Foreign Direct Investment

Openness to Foreign Investment

Mozambique encourages foreign direct investment. CPI, the government’s Investment Promotion Center, seeks to bring investors to Mozambique and should be a potential investor’s primary contact with the government. CPI is particularly interested in increasing investment in the central and northern regions of the country in order to address large regional development imbalances.

Contact information for the Investment Promotion Center (CPI) is as follows:

Investment Promotion Center (CPI)
Lourenço Sambo, Director
Rua da Imprensa, 332 (ground Floor)
Caixa Postal 4635, Maputo
Tel: (258) (21) 31-33-75 or (258) (21) 32-24-57
Fax: (258) (21) 31-33-25
Internet: http://www.mozbusiness.gov.mz or www.cpi.co.mz

Law nº 3/93, of 24 of June (Investment Law), and the respective Regulation, approved by decree nº 14/93, of 21 of July and altered by Decree nº 36/95, of 8 of August, defines the regulatory framework of the process of realization, in Mozambique, of national and foreign investments eligible to the guarantees and fiscal incentives envisaged.

The Code of Fiscal Benefits, approved by Decree nº 16/2002, of 27 of June, establishes the framework of fiscal incentives applicable to eligible investments for that effect.

The minimum value of investment to access the guarantees and fiscal benefits are US$ 50.000 for direct foreign investment and US$ 5.000 for national direct investment.

Investment incentives
The Investment Legislation, according to the value, localization and sector of activity provides customs and fiscal benefits to eligible projects, namely Generic Benefits with its:

Exemptions on Importation Duties on equipment of class “K” of the Customs Tariff Schedule (the exemption is extensive to Value Added Tax).

Reduction of 50% on the real property transfer tax (SISA) on acquisition of immovable goods for Industry, Agro-industry and Hotels, provided that they are acquired in the first 3 (three) years counting from the investment authorization date.

Investment Tax Credit (CFI)

Fiscal Credit per Investment (CFI) during 5 fiscal exercises:

Nampula, Manica, Maputo Cidade and Maputo Province   ------ 5%

Gaza, Sofala, Tete and Zambézia ------ 10%

Niassa, Cabo Delgado and Inhambane ------ 10%

Specific regimes

• Agriculture;
• Industrial Free Zones;
• Tourism and Hotels;
• Large Scale Projects
• Rapid Development Zones;
• Investments under the Mining Law;
• Investments under the Petroleum Law