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 [...]
G Wholesale and retail trade; car and motorcycle repair
47 Retail trade, except of motor vehicles and motorcycles
472 Retail sale of food, beverages and tobacco in specialized stores
4721 47211 47212 47213 47214 47219 Retail sale of food products, including canned goods, bread, milk and dairy products, fresh products including fruits and vegetables, vegetables, potatoes, tomatoes, onions, fish, seafood, meat and meat products, in stores specialized.
4721 4722 47220 Retail sale of beverages in specialized stores; 4722
473 4730 47300 Retail sale of Mineral oils, lubricants and lighting oil in specialized stores. 4730
475 Retail sale of other household equipment in specialized stores
4752 47520 Retail sale of tools, hardware and construction materials and drugstore items, including paints, varnishes, glass, brushes and the like, wood and derivatives, in specialized stores. 4752
4759 47591 Retail sale of electrical goods and radios, electrical appliances for domestic use and refrigerators of all kinds, lanterns, lamps and dry batteries, electric and decorative floor lamps, recorded discs and tapes, including audio cassettes, in specialized stores 4759
47592 Retail sale of office furniture and typewriters, calculators, accounting and similar machines, computer equipment, their belongings and spare parts, in specialized stores. p4759
47593 Retail sale of household items, electrical items, glass and porcelain articles for household use, toys, crockery and trinkets including toys and cutlery, doormats, bathroom rugs, brooms and brushes, handicrafts and typical regional articles . Cleaning and similar articles for domestic use, non-electric grills and toasters, oil stoves and accessories, stoppers, wooden spoons and artificial flowers, handbags, wallets, purses and belts. Travel, barn and mail items. Typically oriental items, tapestries, oilcloths and upholstery items. Furniture, bedding and the like, floor coverings, pictures and decorative items. Glaciers, gas and oil stoves and water heaters and pressure rails. Musical instruments, sheet music and other musical items. Memories and toys. Vases, vases, plastic solitaires, porcelain, glass, plastic, metal and glass bead and all accessories related to florist art, in specialized establishments; p4759
476 Retail sale of cultural and recreational goods in specialized stores
4762 47620 Retail sale of photographic articles, optics and precision instruments, televisions, videos, VCRs, communication equipment and materials, in specialized stores. 4762
477 Retail sale of other goods in specialized stores
4773 Other retailing of new products in specialized stores; 4773
47731 Retail sale of watches, gold and jewelery articles in specialized stores; p4773
47732 Rural retail trade carried out in establishments such as: canteen, tent, stall or stall and street trading.[...]" (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>]