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Mozambique: Law on collaborative financing on its way
2:46 CAT | 26 Nov 2024
File photo: Notícias
In the near future, Mozambique will have a law that establishes the legal framework for collaborative financing, helping to meet the needs for funds for small-scale projects with a major social impact that generally face difficulties in accessing funds from credit institutions.
However, in addition to creating solidity in the regulation for collaborative financing, the law will ensure that the amount raised is used for the purposes declared within the scope of the initiative or campaign.
According to the proposal to which ‘Notícias’ has had access, the future instrument will apply to individuals and legal entities, public and private, that seek funds through collaborative financing platforms.
According to the proposal, the ministry of industry and commerce is responsible for exercising the form of collaborative financing of a social nature, the powers of regulation, supervision, inspection, investigation of infractions, procedural investigation and application of fines and additional sanctions.
The same powers will be exercised by the Bank of Mozambique when it comes to collaborative financing of an investment nature.
The aim is also to ensure that beneficiaries return the monetary amounts raised from financiers and investors, if the total investment is less than the amount raised.
The investor is considered to be the individual or legal entity that, through a given collaborative financing platform, makes funds available to the potential beneficiary for the materialization of an initiative or campaign, with the expectation of a financial return.
In the same light, the requirements for validation of entities managing collaborative financing platforms are proposed to be legal entities established in Mozambique, registered to exercise the professional activity of managing collaborative financing platforms.
The Bank of Mozambique is, until January, conducting public consultations to improve the legal device in preparation.
Source: Notícias
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