The Bank of Mozambique approved new foreign exchange statutes, as follows:

• Notice No. 3/GBM/2024, of 20 March 2024, which sets forth the new rules and procedures to complete foreign exchange transactions;
• Notice No. 4/GBM/2024, of 21 March 2024, on the regime applicable to the liberalization of capital operations and other foreign exchange transactions; and
• Notice No. 5/GBM/2024, of 21 March 2024, which established the regime on repatriation and conversion of revenues from the export of goods, services, and income from investments offshore.

The abovementioned statutes repealed several Notices, including Notice No. 20/GBM/2017, of 27 December 2017, which provided for the former rules applicable to foreign exchange transactions. These new statutes shall enter into force on 19 April 2024.

Amongst the several changes, we highlight that new capital operations not subject to the Bank of Mozambique’s prior approval were introduce, such as:

• shareholders loans granted by a non-resident entity up to the amount equivalent to USD 5,000,000.00 (five million dollars of the United States of America) for natural entities, or USD 10,000,000.00 (ten million dollars of the United States of America) for legal entities, with an interest rate higher than 0%, but lower than the base lending rate of the credit’s currency, a maturity of more than 3 years, and free of commissions and other charges;
• the contracting of a financial loan offshore up to the amount equivalent to USD 5,000,000.00 (five million dollars of the United States of America) for natural entities, or USD 10,000,000.00 (ten million dollars of the United States of America) for legal entities, with an interest rate not higher than the base lending rate of the currency of the credit, plus four base points, a maturity of more than 3 years and the sum of the commissions and other charges is not higher than 5% of the loan amount;
• the provision and repayment of supplementary capital contributions by a non-resident entity; and
• accessory contributions subscribed by a non-resident entity with an interest rate of 0%, a maturity of 3 years or more and free of commissions and other charges OR with an interest rate higher than 0%, but lower than the base lending rate of the credit’s currency, a maturity of more than 3 years, free of commissions and other charges.

Also, we note that revenues from the export of goods, services, and income from investments offshore must be repatriated into Mozambique within 90 days in foreign currency via a Mozambican commercial bank. At least 30% of the amount must be converted into Meticais.

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