The Parliament approved, by means of Law No. 8/2023, of 9 June 2023, the new Investment Law and repealed Law No. 3/93, of 24 June 1993. The approval of this new law arises, among others, from the Economic Acceleration Package for Mozambique (PMAE), launched by the Government on 9 August 2022, which foresee in the Measure No. 14 the adjustment of the Labor and Investment Laws to make them more attractive to foreign investment. The new statute also seeks to adapt the legal framework of the investment sector to the experience gained during the practical application of said legal framework, as well as the current business and investment environment in the country.

The changes introduced may be summarised as follows:

• The scope of the law is refined so as to clarify its intention to regulate all types of private investment, regardless of its origin, whether national or foreign.
• Revision and modernization of the definitions of National Treatment guarantees and protection against acts of expropriation, nationalization, and requisition.
• Strengthening of guarantees and protection measures for ownership rights and other equity-related rights of investors. In this regard, it is established that expropriations may only be based on public interest, and in such cases, the right to fair compensation corresponding to the actual market value of the expropriated investments is ensured.
• Express provision of a set of duties for investors and recognition of the importance of their social responsibility.
• Establishment of the registration process as the general procedure for private investment projects, being the authorization regime only applicable to investment related to sensitive areas and sectors such as security, environment, public health, among others.
• Express subjection of the administrative procedures related to private investment projects to the general principles of public administration, notably those provided in Law No. 14/2011 of August 10.
• Revision of the restrictions applicable to transfer of funds, which are now only subject to the foreign exchange regime in force.

It is also worth noting that the new statute sets the bases for the creation of an electronic platform to handle procedures regarding private investment projects. The new Investment Law shall enter into force on 8 September 2023.

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