Foreign investors (foreign legal persons and foreign majority-owned companies established in Mozambique) are not eligible for the prior notification nor the simplified licensing regimes available to other Mozambican investors in many commercial and services activities, thus being discriminatorily subject to the screening procedures for investing in these same activities.
"ARTICLE 2 (Object)
1. The present Simplified Legal Regime for Licensing for the Exercise of Economic Activities aims to establish the simplified license regime and the certificate of the mere prior communication of economic activities which, by their nature, do not entail negative impacts on the environment, public health , security and the economy in general.
2. Without prejudice to the provisions of the previous number, the present Legal Regime also includes economic activities that may cause negligible, insignificant or minimal negative impacts included in Category C of Environmental Impact Assessment.
ARTICLE 6 (Eligibility)
The application for a simplified license and the mere prior communication may be submitted by a national natural or legal person and by a foreign natural person.
[...]
ARTICLE 9 (Activities subject to mere prior communication)
The following activities are exempt from the simplified license and subject only to prior communication:
a) Commerce
i) [...]: retail sale of bookstores and stationery, bookbinding, office supplies, including drawing and painting material, school supplies, excluding furniture and machinery, in non-specialized establishments; ii) : retail sale of sports, camping and leisure articles in specialized establishments; iii) [...]: retail of fabrics, fashions and apparel, articles of clothing for men, women and children, costume jewelery and similar adornments, aprons, powder, crockery and socks, curtains and their accessories, in non-specialized establishments; iv) [...]: retail sale of shoes, footwear and footwear in non-specialised stores.
b) Provision of services
i) [...]: provision of legal services; ii) [...]: provision of accounting and auditing services; iii) [...]: head office activities; iv) [...]: business and management consulting activities; v) [...]: provision of architectural services; vi) [...]: provision of engineering and related technical services; vii) [...]: Other Personal Service Activities, n.e.s.; decoration and entertainment activities for events, photocopying services, translators and interpreters.
[...]
ARTICLE 11 (Validity)
The certificate replaces the license and is valid indefinitely.
SECTION II - Procedures for obtaining the Simplified License [...]
ARTICLE 13 (Activities subject to Simplified Licensing)
1. The following are areas of economic activities subject to simplified licensing:
a) Agriculture; b) Commerce; c) Communications; d) Civil Construction; and culture; f) Industry; g) Fishing; h) Provision of Services; i) Tourism.
2. The economic activities of the areas indicated in paragraph (1) appear in the table that constitutes the Annex 5 of the present Legal Regime.
[...]
ANNEX V [...]
14 Clothing Industry
141 1410 Manufacture of articles of clothing, except articles of fur; 1410
14101 Manufacture of work clothes and uniforms; p1410
14102 Manufacture of other outer garments in series; p1410
14103 Manufacture of other outer garments to measure; p1410
14104 Making of undergarments; p1410
14109 Manufacture of other clothing articles and accessories; p1410
142 1420 14200 Manufacture of fur products not including a process of washing, bleaching, mercerizing or dyeing fibers and textiles; 1420
143 1430 14300 Manufacture of knitted or crocheted articles not including a process for washing, bleaching, mercerizing or dyeing fibers and textiles. 1430
162 Manufacture of articles of wood, cork, straw and wickerwork, excluding furniture
1629 Manufacture of other articles of wood, wickerwork and wickerwork; cork industry; 1629
16299 Industry of cork and other wooden articles. p1629[...]" (Decree No. 39/2017 of 28 July Approving the Simplified Legal Regime for Licensing for the Exercise of Economic Activities, which comprises the Simplified License and the Mere Prior Communication Certificate [google translate]).
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"Chapter I. General provisions
Article 1. Definitions
1) For the purposes of this Law, the following definitions shall apply: [...]
j. Foreign investor — individual or corporate person bringing to Mozambique from abroad capital and resources belonging to or at the own account and risk of the said person, with a view of carrying out direct foreign investment as defined in paragraph 1m) of this Article, in a project under this Law;
l. National investor — individual or corporate person who makes available capital and resources belonging to or at the own account and risk of said person, with the aim of carrying out direct national investment, as defined in paragraph In) of this Article, in a project approved in accordance with this Law;
m. Direct foreign investment — any form of foreign capital contribution valuable in monetary terms which constitutes own equity capital or resources at the own account and risk of the foreign investor, brought from external sources and to be used in an investment project for carrying out an economic activity, through a company registered in Mozambique and operating from Mozambican territory; [...]
q. Foreign person — any individual whose nationality is not Mozambican, or, in the case of a corporate person, the company originally formed under the legislation of another country, or which, having been formed in the Republic of Mozambique under Mozambican laws, has more than 50% (Fifty percent) of the respective share capital held by foreign persons, as provided for in paragraph 2 of this Article;
r. Mozambican person — any citizen of Mozambican nationality or any company or institution formed and registered under Mozambican laws, with headquarters in the Republic of Mozambique, and in which the respective share capital belongs at least 50% (Fifty percent) to Mozambican citizens, companies or institutions, whether private or public;[...]" (Law No. 3/93 of 24 June on Invesment)
Decree No. 39/2017 of 28 July Approving the Simplified Legal Regime for Licensing for the Exercise of Economic Activities, which comprises the Simplified License and the Mere Prior Communication Certificate [google translate]
Law No. 3/93 of 24 June on Investment
[<a href="https://gazettes.africa/archive/mz/2017/mz-government-gazette-series-i-dated-2017-07-28-no-118.pdf">Decree</a>],[<a href="https://investmentpolicy.unctad.org/investment-laws/laws/108/mozambique-investment-law">Law</a>]