Newly passed Private Investment Law reinforces property rights | Mozambique

Login

Register

http://www.clubofmozambique.com/

Newly passed Private Investment Law reinforces property rights | Mozambique

4:38 CAT | 08 May 2023

Photo: Assembleia da República de Moçambique

The new Private Investment Law embraces best international practices in matters of investment facilitation.

Among several changes in the regulation of private investment, with the approval of the Private Investment Law, in general and by consensus, by parliament, guarantees and measures to protect investors’ property rights and other equitable rights are reinforced, by eliminating the main weaknesses that have been identified in the current legislation.

Another important aspect that the new Investment Law imposes is non-discrimination between national and foreign investors.

The Minister of Commerce and Industry told parliament that the Private Investment Law Proposal is a national priority, as it aims to make Mozambique more attractive to private investment, and is included as one of the pillars of the Action Plan for the Improvement of the Business Environment ( PAMAN 2019-2021) and was chosen by the government as one of the axes of action and attraction of more investments, both national and foreign, within the scope of the package of Economic Acceleration Measures.

Minister Silvino Moreno also said that after almost 30 years of validity, the lessons and experience acquired in the process of practical application of Law nº 3/93, of 24 June, and the respective regulations, justified the need for its revision and adaptation to the current context and dynamics of the national economy, as well as its harmonisation with other legislation related to the business and investment environment in the country, and other instruments in the context of regional and continental integration.

“With a view to making the Country competitive in attracting Foreign Direct Investment and promoting national direct investment, the Government has been introducing economic reforms, in order to make the business environment and investments more attractive, which has resulted in the simplification of procedures for investing, reducing the tax burden and adopting the best international practices in matters of investment facilitation,” the minister said.

For the Minister, a relevant set of general and specific duties of investors is also expressly in the proposed law, highlighting the importance of social responsibility of investors and their respective undertakings in the context of the regions in which they operate.

“Furthermore, the Private Investment Bill, specifically incorporates the principles of action of the Public Administration provided for in Law No. 14/2011, of 10 August, thus reinforcing the position of investors in their relationship with the State,” the minister concluded.

Source: O Económico