Browsing: Mozambique

A brief conversation with Duarte Marques da Cruz, Partner at the law firm MC&A Advogados about some of the legal aspects that companies operating in Mozambique should be aware during the COVID-19 crisis.…

I remember landing in Mozambique over a decade ago to an atmosphere of excitement. Foreign companies at that time had recently discovered major natural resources.
It was the time of the “coal rush” in the northern province of Tete and the initial gas discoveries in the Rovuma basin. It was the beginning of a long journey that years later would see the country start one of the largest LNG projects in history. I have always said that development would happen and be sustained by four pillars. Like dominoes they would fall sequentially, pushing each other in the following order: natural resources; infrastructure; industry and commerce; and agriculture.

I have been approached many times by investors looking for agriculture projects, but time and again the business model fell because there wasn’t the infrastructure to make it viable. Similarly, investors in industry would remark that many projects would simply not have enough …

This article aims to give a general overview about the path towards the opening of a company in Mozambique, bearing in mind the opportunities that the Mozambican Market currently offers and the challenges potential investors may have in understanding the basis and ethos of the legal regime.
First, it is fundamental to explain briefly the more common types of companies before describing more profoundly the legal formalities needed to start a business.

The legislation regulating the incorporation of a company in Mozambique is foreseen in the Mozambican Commercial Code (CCM), enacted by Decree-Law 2/2005 of December 27, which was last amended by Decree-Law 1/2018 of May 4. There are three types of unlimited liability companies (partnerships, limited partnerships and partnerships by shares) and three types of limited liability companies (capital and industry companies, private limited liability companies and public limited liability companies). The focus of this analysis will lay on …

The Ministry of Economy and Finance of the Republic of Mozambique and the Khalifa Fund for Enterprise Development, KFED and signed a $25 million Memorandum of Understanding (MoU), to support entrepreneurship and innovation projects for women and the youth.

The chairman Khalifa Fund for Enterprise Development, Hussain Jasim Al Nowais, and Adriano Afonso Maleiane, Mozambique’s Minister of Economy and Finance signed the MoU in the presence of UAE Ambassador to Mozambique, Khaled Ibrahim Shuhail and other of officials from both sides.

During the five-year as per the Mou, Hussain Al Nowais said the agreement will provide funding for 4,800 projects which will generate 11,000 job opportunities.

‘Some 40 per cent of the targeted projects will be to empower women, while the remaining will be allocated for other members of the remote and poor communities,’ he explained.

Hussain emphasized the importance of creating opportunities for the women and youths to realise …

With more than 14 million people in Southern Africa facing acute hunger, non-governmental organisations are calling on the AU Heads of State to address the issue threatening lives in the region.

The NGOs comprising of Oxfam, CARE, Plan International and World Vision are also calling for the implementation of agricultural policies that will enable people to feed themselves in line with the AU’s Malabo Declaration’s commitment of investing 10 per cent of national budgets in agriculture.

In addition, Southern African leaders are being urged to increase investments in early warnings and early action systems on natural hazards and promote agroecological approaches to transition towards more just and sustainable food systems.

14.4 million people facing acute hunger

Severe food insecurity rates across 9 southern African countries are 140 per cent higher now than in 2018 primarily because people are being hit by weather extremes driven by climate change.

Across the Southern …

A group of South African business people representing 35 companies is expected to travel to Mozambique in search of investment and trade opportunities, the trade and industry department said.

The group will be participating in an Outward Trade and Investment Mission to Pemba and Maputo organised by the trade and industry department from 24 – 29 November

The trip’s objective is to increase bilateral trade and investment between South Africa and Mozambique by exposing South African companies to available opportunities in Mozambique. Nomalungelo Gina Trade and Industry Deputy Minister will lead the mission.

According to the department, the specific focus of the mission will be on designated industrial and infrastructure projects as stated in the memorandum of understanding (MoU) on economic cooperation between the two countries.

Keitumetse Moumakoe, the executive director of the Steel Tube Export Association of South Africa, said his main objective for travelling to Mozambique is to …

United Arab Emirates (UAE) has been strengthening its presence in Mozambique with it becoming the third-largest exporter of diverse products to Maputo in 2018.

The UAE investment level approved by the Agency of Investment and Export Promotion (APIEX) reached over $1 billion between 2014 and 2018, with 20 companies from the UAE investing in Mozambique market.

Abdulla Momade, representative of the Dubai Chamber of Commerce in Maputo said that their investments in Mozambique have focused on energy, logistics and real estate.

Looking at commercial transactions, the volume of trade between Mozambique and the United Arab Emirates is reported to be around US$700 million. In 2018 alone, trade between the two countries was US$500 million.

Also Read: Qatar Airways plans to buy shares from RwandAir

The Persian Gulf country exports to Mozambique products such as lubricants, various machinery and motor vehicles while it buys from Mozambique ores, tobacco, aluminium, precious stones …

Looking for growth opportunities? Africa is a continent with huge economic potential.

It has been gradually transformed in the past 20 years and we are on the cusp of significant growth, with blossoming entrepreneurship and plenty of opportunities for smart and simple business solutions.

Africa is on the rise

Africa is a 1.2bn-person market, a number expected to double over the next 30 years. Generally, business leaders tend to overestimate the challenges of doing business in Africa and underestimate the size and potential on the African continent. Thereby not stating that the African markets are easy to do business in, but emphasising that they are worth the effort, and companies not engaged in African markets risk losing out on one of the 21st century’s great growth opportunities.

One of the fastest growing economies in Africa

Mozambique is one of the poorest countries in the world but it will see large-scale …

I won’t go into details (you will have to seduce me first) but the country has genuinely a special place in my heart. And trust me, I’ve been around, so that means a great deal to me.

I don’t usually get this personal – in fact I don’t think I ever did – but last week as I visited Maputo I came across a truly remarkable initiative whilst getting involved with a special economic zone. Let’s be honest, Corporate Social Responsibility is often seen by corporations as just another item on their checklist as they make their way to approving projects. Particularly if their operations have a significant impact on the surrounding communities – think natural resources and infrastructure. I am always surprised by the number of senior executives I come across who “talk the talk” regarding social impact but care very little whenever marketing and compliance are not at …

The French are coming!

Last Friday Anadarko’s takeover bid by the Occidental Petroleum (Oxy) was officially approved by 99% of its shareholders at an extraordinary general meeting resulting in the combination of two of the largest oil producers in the Houston area. Although this was the largest deal in recent years, it placed Oxy in a challenging position.

The company took some $40 billion in debt to make the deal a reality, including Anadarko’s existing debts.
In addition, early this week the market reacted nervously as Evercore ratings downgraded their stock saying that Anadarko’s acquisition makes the company “larger but less valuable”.

Nevertheless, Anadarko’s Mozambican assets are now on Oxy’s balance sheet and with the recent FID, it is poised to become a reference for African LNG for years to come. Oxy never made secret that the focus of this acquisition was Anadarko’s Permian Basin assets, which are now being …