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With the aim of adapting national and foreign investment processes (“Investment Projects”) to a new institutional framework of coordination and in the context of a policy to attract and facilitate those investments, Decree no. 20/2021, of 13 April (“Decree”), was approved, introducing amendments to the Investment Law Regulation. We highlight the following:
- For the purposes of transferring profits abroad and re-exportable invested capital, the minimum value of foreign direct investment through the allocation of own capital shall now be MZN 7,500,000 (seven million five hundred thousand meticais) and the minimum value for annual exports of goods or services shall be increased to MZN 4,500,000 (four million five hundred thousand meticais).
- The initial investment to be made in the first two years of activity by companies established outside Industrial Free Trade Zones, but that wish to benefit from the respective regime, will now have a minimum amount equivalent to MZN 75,000,000 (seventy-five million meticais).
- The Agency for the Promotion of Investment & Exports (Agência para a Promoção de Investimento e Exportações, I.P. – “APIEX”) replaces the Investment Promotion Centre and the Office of Economic Zones for Accelerated Development as the entity responsible for the development, promotion and management of Investment Projects, as well as the promotion of national exports.
- As regards the entities responsible for the approval of the Investment Projects, we note the following:
- Secretaries of State in the Province: for national Investment Projects in an amount not exceeding the equivalent to MZN 4,500,000 (four million five hundred thousand meticais);
- Director General of APIEX: Investment Projects in an amount not exceeding the equivalent to MZN 7,500,000,000 (seven billion five hundred million meticais) and projects under the Special Economic Zone and Industrial Free Zone regimes;
- Minister that oversees the area of Finances: Investment Projects in an amount not exceeding MZN 37,500,000,000 (thirty-seven billion five hundred million meticais);
- Council of Ministers: Investment Projects in an amount exceeding the equivalent to MZN 37,500,000,000 (thirty-seven billion five hundred million meticais).
- The transfer of an investor’s position, including in undertakings and units of the Integrated Tourism Resort Zone, shall now only be subject to authorisation by the entity that authorised the respective project and upon proof of compliance with the relevant tax obligations.