WT/TPR/S/354/Rev.1  
18 July 2017  
(17-3845) Page: 1/107 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
MOZAMBIQUE  
Revision  
This report, prepared for the third Trade Policy Review of Mozambique, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Mozambique on its trade 
policies and practices.  
 
Any technical questions arising from this report may be  addressed to Mr Mario Kakabadse 
(tel. 022 739 5172) and Ms Katie Waters ( tel. 022 739 5067).  
 
Document WT/TPR/G/35 4 contains the policy statement submitted by Mozambique.  
 
 
Note: This report was drafted in English.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  13 
1.1   Main Features of the Economy  ................................ ................................ ..................... 13 
1.2   Economic Developments  ................................ ................................ .............................. 15 
1.3   Trends in trade and foreign direct investment  ................................ ................................ 17 
1.3.1    Trade in goods and services  ................................ ................................ ...................... 17 
1.3.2    Foreign direct investment (FDI)  ................................ ................................ ................. 21 
2   TRADE AND INVESTMENT  REGIMES ................................ ................................ ...........  23 
2.1   General Framework  ................................ ................................ ................................ ....23 
2.2   Trade Policy Objectives  ................................ ................................ ............................... 25 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 26 
2.3.1    WTO ................................ ................................ ................................ ...................... 26 
2.3.1.1    Enhanced Integrated Framework (EIF) and Aid for Trade  ................................ ........... 27 
2.3.2    Regional trade agreements (RTAs)  ................................ ................................ ............. 28 
2.3.3    Preferential trade agreements  ................................ ................................ ................... 30 
2.3.4    Other agreements and arrangements  ................................ ................................ ......... 30 
2.3.4.1    African Union (AU)  ................................ ................................ ................................ 30 
2.3.4.2    Accelerated Program  for Economic Integration Initiative (APEI)  ................................ ..30 
2.3.4.3    Relations with the United States  ................................ ................................ ............. 31 
2.4   Investment Regime  ................................ ................................ ................................ ....31 
2.4.1    Legal and regulatory framework for investment  ................................ ........................... 31 
2.4.2    Investment promotion  ................................ ................................ .............................. 33 
2.5   Framework for Business  ................................ ................................ .............................. 33 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  36 
3.1   Measures Directly Affectin g Imports  ................................ ................................ .............. 36 
3.1.1    Customs procedures and requirements  ................................ ................................ .......36 
3.1.1.1    Pre-shipment inspection  ................................ ................................ ........................ 39 
3.1.2    Customs valuation and classification  ................................ ................................ .......... 40 
3.1.3    Rules of origin  ................................ ................................ ................................ ......... 41 
3.1.4    Tariffs and other charges affecting imports  ................................ ................................ .42 
3.1.4.1    Applied MFN tariff  ................................ ................................ ................................ .42 
3.1.4.2    Import surtaxes  ................................ ................................ ................................ ....46 
3.1.4.2.1    Sugar  ................................ ................................ ................................ ............... 46 
3.1.4.2.2    Cement  ................................ ................................ ................................ ............. 48 
3.1.4.2.3    Iron or non -alloy steel and iron or non -alloy steel tubes  ................................ .......... 48 
3.1.4.3    Bound tariff and other duties and charges  ................................ ................................ 48 
3.1.4.4    Preferential tariffs  ................................ ................................ ................................ .48 
3.1.4.5    Customs duty exemptions  ................................ ................................ ...................... 49 
3.1.4.6    Value Added Tax (VAT)  ................................ ................................ .......................... 51 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.1.4.7    Excise taxes  ................................ ................................ ................................ ......... 52 
3.1.5    Import prohibitions, quantitative restrictions on imports, and other import 
restrictions  ................................ ................................ ................................ ........................ 54 
3.1.5.1    Import prohibitions  ................................ ................................ ............................... 54 
3.1.5.2    Quantitative restrictions on imports  ................................ ................................ ......... 54 
3.1.5.3    Other import restrictions and licensing requirem ents ................................ ................. 55 
3.1.6    Contingency measures  ................................ ................................ ............................. 56 
3.1.7    Standards and other technical requirements  ................................ ............................... 56 
3.1.7.1    Standards  ................................ ................................ ................................ ............ 57 
3.1.7.2    Technical regulations  ................................ ................................ ............................. 57 
3.1.7.3    Conformity assessment, testing  and inspection  ................................ ......................... 58 
3.1.7.4    Labelling requirements  ................................ ................................ .......................... 58 
3.1.8    Sanitary and phytosanitary requirements  ................................ ................................ ....59 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 62 
3.2.1    Export procedures and requirements  ................................ ................................ .......... 62 
3.2.2    Export taxes, charges and levies  ................................ ................................ ................ 63 
3.2.3    Export prohibitions and restrictions  ................................ ................................ ............ 63 
3.2.4    Export promotion  ................................ ................................ ................................ .....64 
3.2.5    Export finance, insurance, guarantees  ................................ ................................ ........ 64 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......64 
3.3.1    Incentives  ................................ ................................ ................................ ............... 64 
3.3.1.1    Special Economic Zone (SEZ) and Industrial Free Trade Zone (IFZ) regimes  ................ 66 
3.3.2    Competition policy  ................................ ................................ ................................ ...67 
3.3.2.1.1    Anti-competitive practices  ................................ ................................ ................... 68 
3.3.2.1.2    Merger control  ................................ ................................ ................................ ...69 
3.3.2.1.3    Sanctions  ................................ ................................ ................................ .......... 69 
3.3.3    Price controls  ................................ ................................ ................................ .......... 69 
3.3.4    State trading, state -owned enterprises and privatization  ................................ .............. 70 
3.3.5    Government procurement  ................................ ................................ ......................... 71 
3.3.6    Intellectual property rights  ................................ ................................ ........................ 74 
3.3.6.1    Industrial property  ................................ ................................ ................................ 75 
3.3.6.2    Copyright and related rights  ................................ ................................ ................... 78 
3.3.6.3   Plant varieties  ................................ ................................ ................................ ......78 
3.3.6.4    Traditional medicine  ................................ ................................ .............................. 78 
4   TRADE POLICIES AND P RACTICES BY SECTOR  ................................ ..........................  79 
4.1   Introduction  ................................ ................................ ................................ ............... 79 
4.2   Agriculture and Fisheries  ................................ ................................ ............................. 80 
4.2.1    Agricultural producti on ................................ ................................ ............................. 80 
4.2.2    Institutional framework  ................................ ................................ ............................ 81 
4.2.3    Agricultural trade policy  ................................ ................................ ............................ 81 
4.2.3.1    Sugar  ................................ ................................ ................................ .................. 81 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.2.4    Fisheries  ................................ ................................ ................................ ................. 82 
4.3   Mining and Energy  ................................ ................................ ................................ ......83 
4.3.1    Mining  ................................ ................................ ................................ .................... 85 
4.3.1.1    Mining: legal and institutional framework  ................................ ................................ .85 
4.3.1.2    Incentives  ................................ ................................ ................................ ............ 86 
4.3.2    Energy sector  ................................ ................................ ................................ .......... 86 
4.4   Manufacturing Sector  ................................ ................................ ................................ ..87 
4.4.1    Incentives  ................................ ................................ ................................ ............... 88 
4.5   Services Sector  ................................ ................................ ................................ .......... 88 
4.5.1    Financial services  ................................ ................................ ................................ .....90 
4.5.1.1    Sector regulation  ................................ ................................ ................................ ..91 
4.5.2    Transport and logistics  ................................ ................................ ............................. 92 
4.5.2.1    Development corridors  ................................ ................................ .......................... 93 
4.5.2.2    Institutional framework ................................ ................................ .......................... 93 
4.5.2.3    Road transport  ................................ ................................ ................................ .....94 
4.5.2.4    Ports and railways  ................................ ................................ ................................ .94 
4.5.2.5    Air transportation services  ................................ ................................ ..................... 95 
4.5.3    Tourism  ................................ ................................ ................................ .................. 95 
5   APPE NDIX TABLES  ................................ ................................ ................................ .... 97 
 
CHARTS  
 
Chart 1.1 Product composition of merchandise trade  ................................ .............................. 18 
Chart 1.2 Direction of me rchandise trade, 2008 and 2015  ................................ ....................... 19 
Chart 3.1 Breakdown of applied MFN tariffs, 2016  ................................ ................................ ..45 
Chart 3.2 Tariff escalation by manufacturi ng sector (ISIC 2 -digit level), 2016  ............................ 46 
Chart 3.3 Number of state -owned enterprises, 2001 -2016 ................................ ...................... 71 
 
TABLES  
 
Table 1.1 Selected macroeconomic indicators, 2008 -2015 ................................ ....................... 13 
Table 1.2 Trade in services, 2008 -2015 ................................ ................................ ................ 20 
Table 1.3 FDI inflows, b y sector , 2008 -2015 ................................ ................................ ......... 21 
Table 2.1 Mozambique's principal trade -related laws and regulations, April 2016  ....................... 23 
Table 2.2 Notification s under WTO Agreements, 1 January 2009 to 1 November 2016  ................ 27 
Table 2.3 RTAs in force, 2016  ................................ ................................ .............................. 29 
Table 2.4 Investment framework, 20 16 ................................ ................................ ................ 32 
Table 3.1 Total customs declarations processed per channel , 2011 -2016 ................................ ..37 
Table 3.2 SEW user fees, 2016  ................................ ................................ ............................ 38 
Table 3.3 Imported goods subject to PSI, 2016  ................................ ................................ .....39 
Table 3.4 Preferential rules of origin, 2016  ................................ ................................ ............ 41 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table 3.5 Taxes on goods and services, 2009 -2015 ................................ ................................ 42 
Table 3.6 Structure of MFN tariffs in Mozambique, 2008 and 2016 ................................ ........... 43 
Table 3.7 Tariff lines where applied tariff rates exceed bound tariff rates, 2016  ......................... 43 
Table 3.8 Mozambique's applied MFN tariff summary, 2016  ................................ ..................... 44 
Table 3.9 Applied surtax for raw sugar (HS 17.01.11; 17.01.12),  ................................ ............. 47 
Table 3.10 Applied surtax for processed sugar (HS 17.01.91; 17.01.99), 
July 2015-November 2016  ................................ ................................ ................................ ..47 
Table 3.11 Mozambique's applied MFN and preferential tariff summary, 2016  ............................ 48 
Table 3.12 Goods benefiting from exemption or reductio n of customs duties under the 
General Rules for Customs Clearance of Goods  ................................ ................................ ......49 
Table 3.13 Customs duty exemptions contained in the Code of Fiscal Benefits, 2016  .................. 50 
Table 3.14 VAT rates, 2016  ................................ ................................ ................................ .51 
Table 3.15 Excise tax rates, 2016  ................................ ................................ ........................ 53 
Table 3.16 Import prohibit ions, 2016  ................................ ................................ .................... 54 
Table 3.17 Chicken import quota volumes and fill rates , 2012 -2016 ................................ ......... 55 
Table 3.18 Import restrictions, 2016  ................................ ................................ .................... 55 
Table 3.19 Technical regulations notified to the WTO, 2009 -2016 ................................ ............ 58 
Table 3.20 Export prohibitions, 2016  ................................ ................................ .................... 63 
Table 3.21 Export restrictions, 2016  ................................ ................................ ..................... 63 
Table 3.22 Tax incentives offered under the 2009 Fiscal Benefits Code  ................................ .....65 
Table 3.23 SEZs and IFZs, 2016  ................................ ................................ .......................... 67 
Table 3.24 Prohibited anti -competitive practices under the Competition Law  ............................. 68 
Table 3.25 Public enterprises, 2016  ................................ ................................ ...................... 70 
Table 3.26 Procurement regimes, 2016  ................................ ................................ ................. 72 
Table 3.27 Use of procurement modalities, 2015 ................................ ................................ ....73 
Table 3.28 Use of procurement modalities, 2014  ................................ ................................ ....73 
Table 3.29 Patent applications filed and granted, 2009 -2015 ................................ ................... 76 
Table 3.30 Trademark applications filed and granted, 2009 -2015 ................................ ............. 77 
Table 3.31 Industrial design applications filed and granted, 2009 -2015 ................................ ....77 
Table 3.32 IPR fines  ................................ ................................ ................................ ........... 77 
Table 4.1 GDP by economic activity at current basic prices (% of GDP), 2009 and 2014  ............. 79 
Table 4.2 Agricultural production, 2010 -2014 ................................ ................................ ........ 81 
Table 4.3 Fish and aquaculture, 2010 -2015 ................................ ................................ ........... 82 
Table 4.4 Annual production of minerals , 2010-2015 ................................ .............................. 83 
Table 4.5 Annual exports of mineral products , 2010 -2015 ................................ ....................... 84 
Table 4.6 Overview of the financial sector, 2005, 2012 and 2014  ................................ ............. 90 
 
BOXES  
 
Box 3.1 Key changes introduced by the 2015 Industrial Property Code  ................................ .....76 
 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  APPENDIX TABLES  
 
Table A1.1 Merchandise exports by product group, 2008 -2015 ................................ ................ 97 
Table A1.2 Merchandise exports by desti nation, 2008 -2015 ................................ .................... 99 
Table A1.3 Merchandise imports by product group, 2008 -2015 ................................ ..............  100 
Table A1.4 Merchandise imports by origin, 20 08-2015 ................................ ..........................  102 
Table A1.5 FDI inflows by origin , 2008 -2015 ................................ ................................ ....... 103 
 
Table A2.1 Legislative and judicial fr amework, 2016  ................................ .............................  104 
 
Table A3.1 State -participated enterprises managed by the IGEPE, 2015  ................................ . 105 
 
 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  SUMMARY  
1. Mozambique shares many of  the problems of resource -rich countries, with a fragile 
development model excessively focused on extractives and major projects. It has undoubted 
potential but faces considerable challenges: a lack of qualified workers; a limited internal market; 
infrastr ucture insufficiencies; a costly business environment; limited economic diversification; a 
high dependency on imports; increasing debt levels; a narrow tax base; and limited capacity for 
domestic resource mobilization.  
2. Mozambique's economy has grown rap idly since the end of the civil war in 1992.  Real annual 
GDP growth averaged around 8% over the past two decades and around 7% during the current 
review period. Robust growth was made possible by sound macroeconomic management, a 
number of large -scale fore ign investment projects, relative political stability and significant donor 
support.  
3. For most of the review period, Mozambique appeared to be enjoying a natural gas -fuelled 
boom  until the disclosure in April 2016 of secret loans to the Government, which  resulted in the 
IMF and other donors suspending financial support. The Mozambican  authorities are currently 
engaged in discussions to resume financial support.   
4. Strong growth has been supported by FDI inflows in extractive industries. Major discoveries  
of coal and gas may transform Mozambique into a significant player in global energy markets and 
the country's medium -term reform agenda emphasizes the need to focus on strengthening 
capacity to better manage the country's extractive industries.  
5. There h as been relatively limited structural transformation: the share of manufacturing, 
which grew from 13% in the early 1990s to 16% in the early 2000s, had fallen to 10% in 2010 -15. 
The share of the agricultural sector, which initially fell from 35% before the  end of the war to 24% 
in the early 2000s, has averaged around 26% since 2010. Extractive industries represented over 
5% of GDP in 2015 with most investment still geared towards exploration. Tertiary activities 
accounted for 54% of GDP; in addition to expa nding financial services, the tertiary sector has a 
growing number of micro -scale retail businesses with tiny profit margins and few opportunities for 
saving and investing.  
6. Mozambique's traditionally small current account deficits widened during the rev iew period 
as the value of imports significantly exceeded the value of exports. Large -scale 
megaproject -related imports have driven this trend, starting with investments in aluminium 
production and followed by the expansion of the mining and gas sectors fi nanced by FDI. The 
current account deficit ( CAD) has widened from an average of around 11% of GDP from 2004 to 
2010 to around 40% from 2012 to 2015.  
7. FDI reached between US$5  billion  and 6 billion in 2012 and 2 013 and was estimated at 
US$4.9  billion in 2 014, or around one third of GDP, and financed 85% of the current account 
deficit. This trend compares favourably to most of the last decade, when FDI financed 35% of the 
deficit.  
8. Trade in goods and services (exports + imports) accounted for over 100% of  GDP in 2015, 
up from 68% in 2008. The pick -up in investment and FDI inflows since 2008 has been linked to 
strong import growth particularly in consumption and capital goods imports.  
9. Mozambique's export basket is rather limited, reflecting the narrow sc ope of the economy: 
in 2015, four items (aluminium, coal, gas and electricity) accounted for almost 63% of exports. 
Coal exports rose from zero in 2010 to over US$520 million in 2013, ranking second only to 
aluminium exports. Mozambique's main imports are manufactured goods (67% of imports, 
especially machinery and equipment for use as megaproject inputs), foodstuffs and other 
agricultural products (13 %), and fuel and mining products.  
10. Services imports are roughly the same size as Mozambique's total merc handise exports. The 
strong growth in services imports was partly counteracted by improvements in the services 
balance in 2015 which noted a reduction in construction and professional services, a side effect of 
lower investment that year.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  11. Over the rev iew period various development strategy documents were released. Although 
they differ in focus, a common thrust is the priority attached to changing the structure of the 
economy through industrialization with a view to ensuring economic growth, reduced 
unemployment and improved living standards. The promotion of economic zones and development 
corridors, and the upgrading of transport, energy, water and communications infrastructure, is 
seen as being central to achieving this vision. It is against this backg round that various legislative 
and regulatory changes have been made, inter alia , in the areas of rules on public –private 
partnerships as well as incentives.  
 
12. Mozambique's stated trade policy objective is to create an environment conducive to 
promoting  the competitiveness of Mozambican products in international markets, especially those 
of the developed economies of Europe, America and Asia, without prejudice to regional trade. 
While external commentators have suggested that Mozambique could do more to encourage 
public –private sector dialogue on trade policy issues and be more transparent in the way that laws 
and regulations are developed, the recent institutionalization of a formal mechanism for 
public -private dialogue on economic and business issues is  a positive step.  
 
13. Mozambique is a founding Member of the WTO and grants MFN treatment to all of its trading 
partners. In January 2016, Mozambique ratified the Trade Facilitation Agreement.  It has never 
been engaged in any dispute settlement activity. Over the review period, Mozambique has taken 
steps to improve its record on making notifications to the WTO, which was the subject of concern 
during its previous TPR. However, notifications still remain outstanding in various areas and this is 
an area wher e Mozambique has signalled that it needs technical assistance.  
 
14. Mozambique has regional trade agreements in force with its South African Development 
Community (SADC) partners, as well as with Malawi and Zimbabwe (who are also SADC 
members). With respe ct to SADC, a key development was the completion of the transition period 
for full implementation of the free trade area in 2015; 99.6% of duties on goods imported into 
Mozambique from SADC members are now at zero. Mozambique ratified the SADC Protocol on 
Trade in Services in 2012 and approved the SADC Protocol on Employment and Labour in 2014. 
Negotiations to establish a customs union are ongoing , as are broader regional  integration efforts. 
An EU –SADC EPA was signed in June 2016, but has not yet been rati fied by Mozambique; this 
provides for asymmetric liberalization of goods and leaves the door open to enter into future 
negotiations in a variety of areas including services, investment, intellectual property rights, 
competition policy, and public procureme nt. Mozambique is eligible to benefit from unilateral 
preferences offered by various WTO Members.  
 
15. Guarantees and incentives for investment are set out in the 1993 Investment Code and its 
2009 implementing regulations , as well as the 2009 Code of Fisca l Benefits. Foreign investment 
must be of a certain value in order for investors to be able to remit profits outside the country and 
re-export domestic capital; otherwise foreign investors must meet targets related to annual sales 
volumes, exports or direc t employment of a certain number of Mozambican citizens. There are few 
foreign investment restrictions in the areas covered by this report, namely with respect to the 
profession of customs brokers and the export of cashew nuts.  
 
16. Over the review period various steps have been taken to facilitate trade, these include the 
launch of a single window system for customs clearance and other functions; the launch of an 
authorized economic  operator  scheme; liberali zed transit regulations; and the creation of a 
one-stop border post with South Africa.  
 
17. Mozambique continues to require the use of customs brokers for all commercial imports, 
exports and goods in transit; this profession is reserved for qualified Mozambicans and, recently, 
for citizens of SADC m embe r States under certain conditions. However , the authorities have noted 
that this requirement will be removed upon Mozambique's implementation of the WTO's Trade 
Facilitation Agreement. Pre -shipment requirements also remain in place, albeit on a reduced lis t of 
goods; since 2011, exporters of used vehicles have been required  to pay a PSI inspection fee.  
 
18. There have been no changes to Mozambique's rules on customs valuation over the review 
period. Reference prices are applied to sugar, various horticultur al products and certain products 
supplied by grocery stores.  
 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  19. Mozambique's applied MFN tariff has remained largely unchanged over the review period. 
Mozambique's simple average tariff rate is 10% , with a higher simple average tariff on agricultural 
products (WTO definition, 13.4%) than on non -agricultural products (9.5%). International tariff 
peaks affect one  third of Mozambique's tariff schedule. Mozambique does not apply tariff quotas. 
Mozambique has only bound 686 tariff lines out of its schedule of 5,063 tariff lines (just over 
13%).  19 tariff lines at the 8 -digit HS level are bound for non -agricultural products; and for three 
of these lines, applied rates exceed their respective bound rates. Mozambique's tariff shows mixed 
escalation overall: it is negative from raw materials to semi -processed products and then positive 
from semi -processed to finished products. Such a tariff structure tends to discourage investment in 
processing industries because the heavy taxation of imported inputs adds to product ion costs or 
reduces the competitiveness of products manufactured in Mozambique. Thus the tariff structure 
may not be conducive to diversification of economic activity through manufacturing. It also 
contributes to investors ' arguments in favour of duty and  tax concessions, including under the 
Industrial Free Zone (IFZ) and Special Economic Zone (SEZ) regimes.  
 
20. Import surtaxes continue to affect ten tariff lines and are applied to sugar , cement , and 
certain iron and non -alloy steel items. Raw and process ed sugar  are subject to variable surtaxes 
which depend on the differences between the Mozambican reference prices and world market 
prices. Over the review period reference prices were significantly increased in order to protect the 
domestic industry from c heap imports, such that surtax rates have occasionally exceeded 100%, 
which is Mozambique's bound rate for "other taxes and charges". Surtaxes on cement and 
iron/steel items are ad valorem  (ranging from 10.5 to 20%) and remain unchanged since 
Mozambique's previous review.  
 
21. Other taxes and charges affecting both imports and domestic production are VAT (levied at a 
general rate of 17%) and excise taxes on certain goods such as alcohol, tobacco and luxury goods. 
Various exemptions apply to provide incenti ves to particular activities. A special inspection regime 
applies to alcoholic beverages and processed tobacco whereby a seal provides proof of the tax 
payment, with associated fees being applied at a higher rate to imports than domestic production.  
 
22. A chicken import quota mechanism, introduced in 2009, protects the national poultry 
industry from cheap imports of chicken. There is no legal basis for this mechanism; rather it is 
based on an agreement between the Government, the  Association of P oultry Fa rmers (AMA) and 
importers. Quotas are set annually by a working group, and are allocated to a group of large 
importers based on historical performance and distribution capacity criteria.  
 
23. Mozambique has no legislation in place relating to safeguard, a nti-dumping and 
countervailing measures.  
 
24. Over the review period, various new laws have been enacted with respect to technical 
barriers to trade and sanitary and phytosanitary measures, inter alia  to ensure Mozambique's 
conformity with treaty obligatio ns and to update its regulations according to the authorities .  These 
include laws relating to: metrology; standardization and conformity assessment; animal health; 
plant health; GMOs; seeds; pesticides; and, food of aquatic origin. Mozambique's SPS measur es 
are based on international standards drawn up by the OIE, IPPC and Codex Alimentarius; it has no 
purely national SPS  measures per se .  The importation of animals fed with hormones (or their 
products) is not permitted.  
 
25. As at the time of its previous  review, Mozambique  continues to impose  an export tax of 18% 
of the f.o.b. customs value on raw or unprocessed cashews, which was in place to encourage 
domestic processing of cashew nuts and promote employment. New export taxes have been 
introduced on raw and processed timber. The Government does not provide any export finance, 
insurance or guarantee services. The objective of these measures is to encourage domestic 
processing and promote employment, and in the case of timber, to protect the environment.  
 
26. In 2009, the Government introduced a new Code of Fiscal Benefits which moves away from 
a one -size-fits-all approach to providing benefits to a more tailor -made approach, with different 
incentive packages designed for different sectors. Fiscal incentives  include customs duty and VAT 
exemptions, corporate income tax exemptions, reductions and deductions; investment tax credits; 
accelerated depreciation and reintegration; and personal income tax deductions. The new Code 
eliminates the possibility of excepti onal authorization of fiscal benefits; grants  more incentives for WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  tourism promotion; and extends the corporate income tax exemption period for Industrial Free 
Trade Zone s (IFZs) to 10 years.  
 
27. Mozambique continues to operate an IFZ regime; under which i ncentives are offered to all 
industrial activities with a few exceptions. IFZs are closed physical areas which must have security 
systems in place. Seventy per cent (previously 85%) of annual production must be exported. In 
2007, Mozambique introduced a ne w type of zone, the Special Economic Zone (SEZ); SEZs are a 
geographic area of economic activity, rather than a physically -closed space , and SEZ fiscal and 
other incentives are available to all types of legal economic activity. Under both IFZ and SEZ 
regim es, if manufactured goods produced therein are sold to the domestic market, they are 
considered as an export to the domestic market and subject to the applicable duties. The 
encouragement of SEZs and IFZs are considered to be central to the Government's 
industrialization strategy.  
 
28. In 2013, Mozambique promulgated its first  historic Competition Law (Law N o. 20/2013 of 
20 March 2013 ). This law was the first step in Mozambique's efforts to establish a modern legal 
framework on competition. A Competition Re gulatory Authority (ARC) , once operational, will have 
authority to supervise, regulate, investigate and sanction , and will also be required to coordinate 
its activities with other regulatory authorities in the application of the law. The Competition Law 
applies to all economic activities undertaken in Mozambique or having an effect on it by private 
and public enterprises, with a few exceptions. Under the Law, prohibited anti -competitive practices 
include: horizontal agreements between competitors which aim to, or have the effect of, impeding, 
distorting or restricting competition; vertical agreements between companies and their customers 
and suppliers; and the abuse of dominant position by a dominant enterprise.  
 
29. The National Sugar Distributor (DNA) has exclusive rights to export sugar. With respect to 
state-owned enterprises, the State has continued to gradually divest itself of various assets. By 
2016, there were 122 enterprises in which the Government has either a full or partial share. A 
comprehensive  privatization strategy is being implemented with consideration being given to 
further privatizing non -strategic companies.  
 
30. The Government of Mozambique has continued to reform its procurement regime with new 
Procurement Regulations being introduced i n 2010 and in 2016. While new legislation has not 
changed the overall institutional structure for government procurement, it has introduced changes 
in order to, inter alia , increase transparency in procurement processes; reduce the use of direct 
procuremen t; introduce a new contracting modality; increase business opportunities for foreign 
competitors; remove barriers to complaints by competitors; increase the thresholds for the 
application of certain tendering modalities; and strengthen the intervention pow ers of the 
supervisory agency. Preferences given to national competitors remain in place.  
 
31. In the area of intellectual property rights, a new Industrial Property Code entered into force 
in 2016; legislative amendments are designed to promote competitiv eness, industrialization and 
modernization of the economy and to increase exports. Parallel imports of various forms of 
industrial property are prohibited under the new Code. Provisions allowing compulsory licensing 
under certain conditions are in place; t hese have been invoked once, but not yet used. In 2013, 
Mozambique acceded to the Berne Convention for the Protection of Literary and Artistic Works and 
in the same year it signed the Marrakesh Treaty to Facilitate Access to Published Works for 
Persons Who  Are Blind, Visually Impaired or Otherwise Print Disabled.  
 
32. Agriculture  accounts for a quarter of GDP and is a driver of Mozambique's robust growth. It 
remains the core economic activity for most Mozambicans, with an estimated 86% of the people 
depend ing on agriculture as their primary means of subsistence. However, the sector is dominated 
by low -productivity subsistence farming which is in need of new technology and investment. The 
country still imports a significant share of its food, mainly rice to supply urban centres.  
33. Agricultural export s have grown steadily, encouraged by a liberalized trade regime. Although 
cash crops, including sugar cane, tobacco, cotton and cashew , account for a small proportion of 
total area cultivated, they represent th e majority of agricultural exports. Government intervention 
in these subsectors remains significant. Agriculture remains the most protected sector with an 
average tariff of 12.4%. The highest average tariffs are applied to basic food products such as 
meat,  fish, fruits and vegetables.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  34. Despite being a growing activity , extractive industries represented  only 3.9% of GDP in 2014 
with most investment still geared towards exploration. Mining in Mozambique plays a significant 
role in the world's production o f coal, gold, graphite and limonite, with massive coal reserves in 
Tete Province. Large reserves of natural gas were discovered in the Rovuma Basin in 2012. 
Currently, most of Mozambique's mining and mineral processing operations are privately owned, 
including cement plants, aluminium smelters and gas processing plants.  
35. Coal mining began in 2011 and is becoming a major export, although infrastructure 
constraints and declining coal prices may affect development prospects. Ultimately, natural gas is 
projected to dominate the export mix toward the end of the current decade.  
36. During the review period, Mozambique's mining sector  has attracted significant attention 
from international mining companies. Recognizing this potential, the Mozambique Parliament 
approved a new Mining Law (Law  No. 20/2014 of 18 August) repealing the previous Mining Law 
(Law No. 14/2002).  
37. Manufacturing, which  accounts for 10% of GDP, is dominated by the Mozal aluminium 
smelting plant, while the rest of the sector has significantl y under -performed over the last decade. 
Mozal contributed 48% of Mozambique's industrial output and further represents 75% of 
manufacturing exports.  
38. Mozambique is characterized by a weak fixed telecoms  network and a relatively strong 
mobile network. T he fixed network, with 81,000 subscribers or just 0.3 fixed -telephone 
subscribers per 100 inhabitants, has been unable to compete against mobile providers, struggling 
with poor infrastructure due to a prolonged period of under -maintenance and insufficient 
investment. The mobile segment has been more successful, expanding from 436,000 subscribers 
in 2003 to an estimated 18 million subscribers in 2015. The new Telecommunications Law (Law  
No. 4/2016), which entered into force in June 2016, addresses some of th e sector's challenges and 
technological changes, including: unified licensing, enhancing competition, assuring network 
interoperability and interconnection, promoting infrastructure investment and sharing, and quality 
and affordability of service. The aim of this law is to stimulate competition in the 
telecommunications market, improve its functioning and ensure the protection of basic rights of 
consumers.  
39. There has been a significant level of liberalization in the Mozambican banking services 
market, bu t this has not translated into increased affordability and availability of banking products. 
Access to finance remains an obstacle to improving Mozambique's investment climate. 
Cross -border lending by banks and acceptance of deposits is allowed, but lendin g is subject to 
restrictions on the period, size, and interest rate of the loan. Financial services are both a key 
sector in services trade and a necessary prerequisite for foreign direct investment in other goods 
and services sectors. The Financial Sector  Development Strategy 2013 -2022 aims to maintain 
financial stability, improve financial access and support inclusive growth, and increase the supply 
of long -term private capital to support development.  
40. Mozambique has poor quality transport infrastruct ure compared to other countries in the 
world: in 2013 it was ranked 124th out of 144 countries by the World Economic Forum (WEF) in the 
"quality  of transport infrastructure"  index. The country fares even worse when it comes to the 
quality of roads, where i t ranked 135th out of 144 countries. Transport by road accounts for nearly 
all of passenger traffic in Mozambique and over half of freight traffic. The condition of the road 
network is poor, in particular in rural areas. The quality of its railroads is dee med more adequate, 
with a ranking of 89th.  Air transport services constrain the growth of the tourism industry as only 
the Portuguese carrier TAP operates an intercontinental  direct flight to Mozambique and all other 
long-haul flights to Maputo are routed  through Johannesburg.  
41. Mozambique accounts for 70% of SADC's transit traffic, with logistics corridors linking the 
deep water coastal ports with neighbouring countries. It therefore plays a major role in  regional 
trade as it provides important transpo rtation corridors for cross -border businesses as well as 
exporters and importers of goods.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  42. Mozambique has significant potential in tourism  based on its range of beach holiday 
products, ecotourism, cultural diversity, and extensive coastline. The Govern ment has made 
tourism a development priority since 2000. The relevance of tourism to economic growth and 
poverty reduction is also acknowledged by the Strategic Plan for the Tourism Sector, 2004 -2014.  
 
 
 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The Republic of Mozambique is categorized as a low -income country and in 2014 its per 
capita income was US$586, about one third of the sub-Saharan Africa average. It is estimated that 
more than 50% of the population still live on less than US$1 a day. In ad dition to pervasive 
poverty, it faces significant challenges in improving social indicators, ranking 180th out of 
188 countries in the 2015 UNDP Human Development Index.1 The adult literacy rate is 56% and 
average life expectancy at birth is just 50 years.  Malnutrition significantly worsened between the 
mid-1990s and 2003 and it took almost a decade for malnutrition to return to the mid -1990s 
levels. Malaria remains the most common cause of death, responsible for 35% of child mortality. 
Limited progress has  been achieved in improving water and sanitation. Mozambique is also prone 
to natural disasters and ranks third amongst African countries most affected by weather -related 
hazards.2 
1.2.  The Government acknowledges that the welfare of Mozambique's population, ec onomic 
growth and the achieve ment of development and poverty -reduction goals depend on the 
sustainable use of natural resources and environmental protection. More than 82% of jobs 
nationwide depend on natural resources. The country is richly endowed with a  large variety of 
mineral resources. Inclusive, sustainable and transparent management of natural resources is one 
of the most critical challenges facing Mozambique.  
1.3.  Mozambique's economy has grown rapidly since the end of the civil war in 1992.  Real a nnual  
GDP growth averaged around 8% over the past two decades and around 7% during the current 
review period (Table 1.1). To a considerable extent, and until very recently, robust growth was 
made possible by sound macroeconomic management, a number of large -scale foreign investment 
projects, relative political stability and significant donor support.  
Table 1.1 Selected macroeconomic indicators, 2008 -2015 
 2008  2009  2010  2011  2012  2013  2014  2015  
GDP at market prices  
(Mt million)  279,330.6  300,269.9  344,839.4  381,691.5  433,122.2  482,233.4  531,777.1  592,023.9  
GDP at market prices 
(US$ million)  11,494.8  10,911.6  10,154.3  13,131.2  15,265.3  16,018.9  16,961.1  14,807.1  
Population ('000)  21,207.9  21,802.9  22,416.9  23,049.6  23,700.7  24,366.1  25,041.9  25,727.9  
Per capita GDP at 
current prices  542.0  500.5  453.0  569.7  644.1  657.4  677.3  575.5  
Unemployment, total 
(% of total labour  
force)  22.6 22.6 22.6 22.6 22.6 22.5 22.6 .. 
Inflation (CPI, % 
change)  10.3 3.3 12.7 10.4 2.7 4.3 2.6 3.6 
GDP by type of expenditure at constant 2009 prices (%age change)  
GDP 6.9 6.4 6.7 7.1 7.2 7.1 7.4 6.6 
Final consumption  5.8 6.3 5.2 6.8 9.7 7.8 4.6 6.0 
  Households  5.5 6.2 3.6 4.9 8.2 5.9 4.7 4.1 
  General government  7.3 7.1 11.9 14.3 15.3 14.4 4.2 11.8 
Gross domestic fixed 
capital formation  56.0 7.2 17.6 17.1 73.8 53.2 24.0 -24.9 
Exports of goods & 
services  7.0 15.5 1.5 17.2 13.3 2.2 15.7 -4.9 
  Goods  -0.1 13.2 0.9 10.2 16.7 4.0 16.4 -3.1 
  Services  47.4 24.5 3.7 40.9 4.3 -3.5 13.5 -10.8 
Imports of goods & 
services  15.4 13.2 1.6 25.6 62.4 28.8 14.6 -11.8 
  Goods  10.2 16.8 -0.3 17.3 49.8 37.6 -2.0 1.0 
  Services  33.8 2.8 8.2 51.0 92.5 12.7 51.9 -30.6 
GDP by economic activity at current basic prices (% of GDP)  
Agriculture including 
livestock, hunting, 
forestry and fisheries  29.1 30.1 29.5 28.6 27.6 26.6 25.1 25.2 
                                                
1 Mozambique 2016, p.4. Viewed at : www.africaneconomicoutlook.org . 
2 Data contained in World Bank: Republic of Mozambique – 11th Poverty Reduction Support Development 
Policy Financing Report No. 100315 –MZ, 23 November 2015, pp. 2 -5. WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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   2008  2009  2010  2011  2012  2013  2014  2015  
Mining and quarrying  1.5 1.6 1.7 2.4 3.3 3.5 4.9 5.6 
Manufacturing  13.4 11.9 11.3 11.2 10.0 9.5 9.9 10.0 
Electricity and gas  2.7 3.4 3.6 3.3 3.3 3.5 3.4 3.2 
Water (collecti on, 
treatment and 
distribution)  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Construction  1.7 2.0 2.1 2.3 2.3 2.0 2.3 2.5 
Commerce and vehicle 
repair  11.1 10.0 10.9 11.1 12.0 12.9 12.7 11.9 
Transport, storage and 
communication  9.8 10.0 10.0 8.6 9.0 9.9 8.2 8.1 
Hotels and restaurants  2.5 2.6 2.8 3.1 2.4 2.3 2.3 2.4 
Information and 
communication  4.1 4.1 3.9 3.9 3.9 3.8 3.7 3.5 
Financial activities  3.6 3.3 3.8 5.2 5.0 5.1 5.1 5.1 
Real estate and location 
services  7.9 7.8 7.5 7.4 7.2 7.2 6.4 6.3 
Public administratio n, 
defence, and obligatory 
social insurance  4.3 4.9 5.2 5.5 5.5 5.8 6.5 6.9 
Education  7.1 7.2 7.0 7.3 7.9 7.8 8.8 8.7 
Health and social work  1.6 1.7 1.6 1.7 1.9 1.8 2.2 2.1 
Other collective service 
activities  1.0 1.0 0.9 0.9 0.8 0.8 0.7 0.7 
Financial i ntermediation 
services indirectly 
measured  -1.7 -1.6 -2.1 -2.7 -2.5 -2.6 -2.3 -2.6 
Government budget (% of GDP)a 
Total revenueb 16.0 17.6 19.6 20.8 21.9 26.3 27.3 .. 
  Tax revenue  14.2 15.6 17.0 18.1 18.7 22.3 23.4 .. 
  Non-tax revenue  1.8 2.0 2.5 2.6 3.2 3.9 4.0 .. 
Total expenditure and 
net lending  27.9 32.6 32.9 33.7 30.7 34.0 42.2 .. 
  Current expenditure  15.7 18.0 18.4 18.8 18.1 19.2 23.8 .. 
  Capital expenditure  11.6 12.9 13.9 13.9 11.6 12.8 15.0 .. 
Net lending  0.6 1.7 1.0 1.0 1.0 2.1 3.0 .. 
Overall balance, before 
grants  -11.8 -15.0 -13.2 -13.1 -8.9 -7.9 -14.8 .. 
  Grants received  9.4 9.5 9.0 7.8 5.1 5.2 4.2 .. 
Overall balance, after 
grants  -2.3 -5.5 -4.3 -5.3 -3.9 -2.7 -10.6 .. 
Total nominal public 
debt 41.6 40.5 46.1 39.6 39.9 50.9 56.6 73.4 
of which: external  .. 37.3 40.2 32.9 34.5 42.4 48.1 .. 
              domestic  .. 3.2 6.0 6.7 5.4 8.6 8.5 .. 
External sector  
Mt/US$ (period 
average)  24.3 27.5 34.0 29.1 28.4 30.1 31.4 40.0 
Mt/US$ (end of period)  25.5 29.2 32.6 27.3 29.8 30.1 33.6 45.9 
Nominal effective 
exchange rate (annual 
average: index, 
2000=100)c 51.7 48.0 37.3 41.9 45.1 44.3 44.5 .. 
Real effective exchange 
rate (annual average: 
index, 2000=100)c 90.6 84.7 71.9 86.3 92.4 91.3 90.0 .. 
Current account 
(US$ million)  -1,147.2  -1,226.2  -1,679.4  -3,328.7  -6,790.0  -6,253.4  -5,797.1  -6,155.4  
  % of GDP  -10.0 -11.2 -16.5 -25.3 -44.5 -39.0 -34.2 -41.6 
Trade balance (% of 
GDP) -12.2 -15.6 -21.2 -31.5 -50.8 -47.5 -41.1 -45.8 
Goods (% of GDP)  -8.6 -11.7 -11.6 -17.1 -26.5 -27.2 -23.8 -28.1 
  Exports  23.1 19.7 23.0 23.7 25.3 25.7 23.1 23.1 
  Imports  31.7 31.4 34.6 40.9 51.8 52.9 46.9 51.2 
Services (% of GDP)  -3.6 -4.0 -9.5 -14.4 -24.3 -20.3 -17.3 -17.7 
  Exports  4.8 5.6 2.4 2.8 5.2 4.0 4.3 4.9 
  Imports  8.4 9.6 12.0 17.1 29.5 24.4 21.6 22.6 
Trade on BoP basis (% 
of GDP)  68.0 66.2 71.9 84.6 111.7  107.1  95.8 101.7  
Total reserves (includes 
gold, in US$ billion)  1.7 2.2 2.3 2.6 3.0 3.4 3.2 2.6 
  in months of imports  3.7 5.3 5.2 3.9 2.8 3.2 3.2 2.8 
FDI inflows 
(US$ million)  591.6  898.3  1,017.9  3,558.5  5,629.4  6,175.1  4,901.8  3,710.8  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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   2008  2009  2010  2011  2012  2013  2014  2015  
  % of GDP  5.1 8.2 10.0 27.1 36.9 38.5 28.9 25.1 
FDI stock (US$  million)  3,748.2  3,874.6  4,688.2  8,263.6  13,907.3  20,604.8  25,238.2  28,950.5  
  % of GDP  32.6 35.5 46.2 62.9 91.1 128.6  148.8  195.5  
.. Not av ailable.  
a Information on Government budget extracted from various IMF Country Reports on Mozambique.  
b VAT presentation was changed to a net basis (collection minus requested VAT refunds) for 
2010-2014.  
c An increase indicates appreciation.  
Source:  Information provided by the authorities of Mozambique; Instituto National de Estatistica. Viewed in 
September 2016 at: http://www.ine.gov.mz/; Banco de Mozambique. Viewed in September 2016 at: 
http://www.bancomoc.mz/Noticias.aspx. IMF (2010), Country Report No.  10/174, June; IMF (2012), 
Country Report No. 12/148, June; IMF (2013), Country Report No. 13/200, July; IMF (2014), 
Country Report No. 14/148, May; IMF (2016), Country Report No. 16/9, January; IMF online 
information, 'International Financial Statistics'.  Viewed in September 2016 at: http://elibrary -
data.imf.org/DataExplorer.aspx; IMF World Economic and Financial Surveys Regional Economic 
Outlook Sub -Saharan Africa, October 2014 and October 2015; and World Bank's World Development 
Indicator database. Viewe d in September 2016 at: http://databank.worldbank.org/data/views/  
variableselection/selectvariables.aspx?source=world -develo pment -indicators . 
1.4.  There has been relatively limited structural transformation in the economy . The share of 
manufacturing, which grew from 13% in the early 1990s to 16% in the early 2000s, had fallen to 
10% in 2010 -15. Manufacturing is dominated by the Moz al aluminium smelting plant, while the 
rest of the sector has significantly under -performed over the last decade. The share of the 
agricultural sector, which initially fell from 35% before the end of the war to 24% in the early 
2000s, has averaged around 2 6% since 2010. Extractive industries represented over 5% of GDP in 
2015 with most investment still geared towards exploration. Tertiary activities accounted  for 54% 
of GDP; in addition to expanding financial services, the tertiary secto r has a growing numb er of 
micro -scale retail businesses with tiny profit margins and few opportunities for saving and 
investing.  
1.5.  In recent years, strong growth has been supported by Foreign Direct Investment (FDI) 
inflows in extractive industries. Major discoveries of coal an d gas may transform Mozambique into 
a significant player in global energy markets and the country's medium -term reform agenda 
emphasizes the need to focus on strengthening capacity to better manage the country's extractive 
industries.  
1.2  Economic Developments   
1.6.  After several consecutive years of robust growth, Mozambique's economic performance 
decelerated in 2015 to its slowest pace since 2009. A continued decline in global commodity 
prices, weak growth among trading partners , and the effects of regional drough t contributed to a 
decline in GDP growth from 7.4% to 6.6% in 2015. The initial growth projection of 7.5% for 2015 
was revised downward as a result of the floods that affected the cent re and north of the country in 
early 2015 a nd a weak external environmen t. 
1.7.  Extractive industries have been the most dynamic sector in the economy for the past few 
years but the contribution to growth remains limited given its relatively small share in the 
economy. Growth in extractive industries has decelerated compared to pre vious years, given low 
commodity prices and infrastructure constraints. Mozambique has not secured the energy industry 
investment that it expected , as t he conclusion of natural gas exploration was not followed by 
sufficient project development. Final inves tment decisions have been delayed and this has led to 
the slimming down or departure  of many companies that set  up business in Mozambique hoping to 
benefit from  liquefied natural gas (LNG) deals. With the coal  sector also hampered by low prices 
and export logistics difficulties, FDI declined to pre -2012 levels  in 2015 . 
1.8.  Inflation rates have been relatively low and stable during the latter half of the review period. 
It was lower than projected in 2014, at 1.1% (ye ar-on-year) in December. The yearly average in  
2014 was down to 2.6%, well below the Central Bank 's target of 5 -6%. Low inflation had reflect ed 
the strength of the metical against the South African rand and a decline in commodity prices in 
international markets. However, although inflation was still l ow at 3.6% on average in 2015, it has WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  been accelerating  and was expected to overshoot the Central Bank target of 5% to 6% in 2016 as 
depreciation of the metical progressively trickles through  to domestic prices . 
1.9.  Monetary and exchange rate policies have bee n geared towards achieving price stability and 
smoothing exchange rate volatility. However, b alance -of-payments pressures  have led to major 
depreciation of the metical. Over the year  2015, the currency  depreciated by 64.5% against the 
U.S. dollar and 28% a gainst the South African rand. The Bank of Mozambique used international 
reserves on the open market to contain the depreciation of its currency.  
1.10.   The fall in FDI and official development assistance compounded the hard currency shortage. 
Reserves fell from US$2.89 billion, or nearly three  months of imports, at the beginning of 2015 to 
roughly US$1.9 billion, or about two  months of imports, by end -December; international reserves 
fell further in the early months of 2016. The de preciation cycle was only halte d with an 18 -month 
US$282.9 million IMF standby cre dit facility agreement reached in December 2015.  
1.11.   Fiscal policy has been expansionary over the past few years, with public expenditure 
expanding from 33% of GDP in 2010 to an estimated 42%  in 2014. This has  been partly facilitated 
by rapid growth  in tax revenues, which have risen from 17% of GDP in 2012 to over 23%  in 2014, 
reflecting efforts to improve tax administration and raise capital gains taxes from the extractive 
industries. This increase in revenue compensated for a decline in aid flows . Mozambique 's fiscal 
position deteriorated from 2012 through 2014 with an escalation in expenditure. Generous inflows 
of windfall capital gains tax from gas consortiums and the steady support of official development 
assistance grants helped to contain the deficits.  The Government is committed to a prudent fiscal 
stance as reflected in the 2015 budget . 
1.12.   As noted above, depressed international commodity prices caused a decrease in the value of 
exports in 2015, with natura l gas and coal registering the biggest drops. Official development 
assistance also fell as some partners reduced support. Aid is important for education, health, and 
infrastructure development. It fell by US$200 million to around  US$1.2 billion, 9% of GDP in 2015. 
The balance of payments suffered from a squeeze in hard -currency liquidity caused by the foreign 
investment slump, lower exports and reduced development assistance.  
1.13.   Mozambique's traditionally small current account deficits have widened during the review 
period. Large -scale megaproject -related imports have driven this trend, starting with investments 
in aluminium production and followed by the expansion of the mining and gas sectors financed by 
FDI. As a result, the current account defic it has widen ed from an average of around 11% of GDP 
from 2004 to 2010 to around 40% from 2012 to 2015.  
1.14.   In particular, t he trade deficit, fueled  by increased consumption, has been expanding since 
2013 and surpassed US$4.1 billion in 2015. Going forward, lower public sp ending and the 
depressed value  of the metical could help curb imports. An expected increase in imports for major 
LNG projects, financed by foreign investment, may contribute to  the current account deficit to a 
projected 46.1% of GDP in 2016 and 47.9% in 20 17 as the gas fields in the Rovuma basin are 
developed.  
1.15.   For most of the review period, Mozambique appeared to be enjoying a natural gas -fuelled 
boom  until the disclosure in April 2016 of secret loans to the Government, which  resulted in the 
IMF and other d onors suspending financial support . The Mozambique authorities have since been 
engaged in discussions to resume financial support  subject , inter alia , to implementation of sound 
macroeconomic policies and an effective initiation of an audit process (of the  companies EMATUM, 
Proindicus and MAM ), with the objective of strengthening transparency, governance, and 
accountability to avoid recurrence of past debt problems) .3 
                                                
3"Mozambique is facing a challenging economic environmen t. Growth has been on a declining path and 
is currently expected to be 3.7% in 2016 (down from 6.6% in 2015), which is significantly below levels 
observed in recent years. Inflation has risen sharply, reaching 21% on a year -on-year basis in August, fue lled 
by a significant depreciation of the metical (about 40% since the start of the year). At the same time, a 
significant decline in imports has been more than offset by a weakening of exports, FDI, and donor financing. 
This has maintained pressure on interna tional reserves, which have continued to decline. The discovery in 
April 2016 of previously undisclosed debt worth US$1.4 billion (10.7% of GDP), combined with the impact of 
the exchange rate depreciation, has led to a substantial increase in debt ratios a nd the debt service burden.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  1.3  Trends in t rade and foreign direct investment  
1.3.1   Trade in goods  and services  
1.16.   Trade in goods a nd services accounted for over 100% of GDP in 2015, up from 68% in 
2008. The pick -up in investment and FDI inflows since 2008 has been linked to strong import 
growth particularly in consumption and capital goods.  
1.17.   In recent decades, the export base has move d away from traditional exports such as 
prawns, cotton, timber, cashew nuts and sugar, which dominated in the first post -war decade, to 
mining -related exports from megaprojects. Thus, Mozambique' s export basket is rather limited, 
reflecting the narrow scop e of the economy: in 2015, four items ( aluminium , coal, gas and 
electricity) accounted for almost 63% of exports (Chart 1.1 and Tables A1.1 and A1.2). Total 
exports grew at an average annual rate of 10% from 2007 to 2014, driven by megaprojects in 
aluminiu m, coal and natural gas industries. Coal mining began in mid -2011 and is expected to 
become a major export, although infrastructure constraints and declining coal prices may affect 
development prospects. Coal exports rose from zero in 2010 to over US$520 m illion in 2013, 
ranking second only to aluminium exports . 
1.18.   Aluminium and aluminium alloys (processed from alumina imported from Australia) continue 
to be Mozambique's main export, resulting from the expansion of the smelting capacity of the 
Mozal megaprojec t. The E uropean Union is the main market for Mozambique's aluminium, where it 
benefits from preferential access (Chart 1.2 and Tables A 1.1 and A1. 2). Mozambique continues to 
export nearly half of its merchandise goods to the E uropean Union and especially t he Netherlands. 
Other important export categories include energy (electricity and natural gas), making South 
Africa a leading export destination in Africa. Looking further ahead, natural gas is projected to 
dominate the export mix toward the end of the dec ade. Principal exports to India include nuts, 
vegetables, pigeon peas, ores and wood.  
                                                                                                                                                  
A revised 2016 budget was approved by Parliament in July including measures to contain non -essential 
spending. On the monetary front, the Central Bank raised reserve requirements and its benchmark interest 
rate by 300 basis poin ts to reduce excess liquidity. In addition, it has appropriately allowed the exchange rate 
to fluctuate to help restore balance between supply and demand for foreign exchange and support the needed 
ongoing balance of payments' adjustment, while limiting th e loss of international reserves.  
 Nonetheless, with inflation still rising and the metical depreciating, further policy tightening is needed to 
safeguard macroeconomic stability. Notably, the 2017 draft budget is set to further consolidate the state of 
public finances while preserving critical social programmes. On the monetary side, the Central Bank intends to 
continue adjusting its monetary stance to help reduce inflationary pressures."  Source: Press release 
29 September 2016: IMF Staff Conclude Visit t o Mozambique . Viewed on 4  October  2016 at: 
http://www.imf.org/en/News/Articles/2016/09/29/PR16436 -Mozambique -IMF-Staff-Concludes -Visit. WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Chart 1.1 Product composition of merchandise trade  
Chart 1.1
Product composition of merchandise trade, 2008 and 2015
2008 2015
(a)    Exports (f.o.b.)
Manufactures
6.0% Manufactures
8.4%
Aluminium (SITC 684)
33.4%Food
20.0%
Natural gas, 
liquefied 
(SITC 3431)
7.2%
Mining
68.8%Agriculture
22.7%Other 
0.0%
Agri. raw 
materials
2.7%
Electric 
current 
(SITC 3510)
9.9%Other mining
6.1%
Coke and 
semi-coke 
of coal 
(SITC 3250)
12.1%
Total:   US$2.7 billion Total:  US$3.2 billion
(b)    Imports (c.i.f.)
Chemicals
7.8%Other consumer 
goods
4.1%
Transport  
equipment
10.7%Manufactures
47.3%
Electrical
machines  
6.3%
Non-electrical 
machinery
7.4%Iron and steel 
2.4%Non-electrical 
machinery
11.7%Other 
mining  
0.6%
Chemicals
10.2%Textiles & Clothing
1.8%Other 
consumer 
goods 
4.9%
Iron and steel 
3.5%Other
0.0%
Electrical 
machines
7.7%
Other semi -manuf.  
9.0%Transport 
equipment
18.5%
Fuels
13.0%Manufactures
67.3%
Total:   US$4.0 billion Total:   US$7.9 billionOther
16.8%Aluminium (SITC 684)
54.7%Food
14.7%
Source:  UNSD, Comtrade database (SITC Rev.3).Textiles & 
Clothing
1.5% Mining
19.5%Natural gas, 
liquefied 
(SITC 3431)
0.1%
Other 
semi-manuf.
7.0%Mining
68.0%Agriculture
18.2%
Agriculture
13.2% Agriculture
15.2%
Mining
20.6%Other 
7.7%
Fuels
20.2%
Other mining  
0.4%Agri. raw 
materials
3.5%
Electric 
current
(SITC 3510) 
8.5%
Aluminium, 
unwrought
(SITC 6841)
5.9%Other mining
4.7%
 
Source:  UNSD, Comtrade database (SITC Rev.3).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Chart 1.2 Direction of merchandise trade, 2008 and 2015  
Chart 1.2
Direction of merchandise trade, 2008 and 2015
2008 2015
(a)    Exports (f.o.b.)
Europe
47.9%Asia
21.5%
EU (28)
46.2%Other
3.0%
Americas
2.6%South Africa
18.3%
Africa
24.8%
Other 
Europe
1.7%Other Africa
6.5%India 
10.6%
Other 
Asia 
6.3%Singapore 
4.6%
Total:   US$2.7 billion Total:  US$3.2 billion
(b)    Imports (c.i.f.)
Other 
2.9%India 3.6%
EU (28)
27.4%Other Europe
0.8%Americas
6.0%Europe
28.2%Middle East
9.7%
Japan 3.2%
Asia
27.6%
Africa
33.6%
Europe
24.0%
EU (28)
22.5%
Other Europe
1.5%South Africa
30.1%Other Africa
3.5%Middle East
10.0%
Other Asia 
8.0%India 4.0%
Americas
4.4%Japan 3.1%China 12.5%
Other 
0.3%
Total:   US$4.0 billion Total:   US$7.9 billion
Source:  UNSD, Comtrade database.Europe
63.6%Asia
4.4%
Asia
21.0%China 3.9%EU (28)
62.7%Other
14.7%
Americas
1.2%
Other Asia   
10.3%
Africa
32.2%South Africa
10.0%
Africa
16.1%
South Africa
29.1%Other Africa
3.1%Other Europe
0.9%Other Africa
6.1% India 1.1%
Other Asia 3.3%Singapore 0.1%
 
Source:  UNSD, Comtrade database.  
1.19.   Taking out exports associated with megaprojects, exports have remained steady at around 
US$1 billion per year since 2011 . The only other signi ficant export expansion during the review 
period was in the sugar sector, resulting from new investment to rehabilitate the industry . 
Depressed demand for commodity exports, as well as delays in ramping up coal export 
infrastructure, resulted in a signific ant fall in the value of exports from US$4.7 billion in 2014 to 
US$3.2 billion in 2015, with decreases registered across the board.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  1.20.   Mozambique's main traditional imports are manufactured goods (67% of imports, especially 
machinery and equipment for use as megaproject inputs), foodstuffs and other agricultural 
products (13%) and fuel and mining products  (19.5%) . Imports boomed during the review period, 
virtually doubling from US$4 billion in 2008 to US$7.9billion in 2015, after reaching US$10 billion 
in 2013 . Later in the review period, merchandise imports dropped in 2014 and 2015 as a result, 
inter alia , of cheaper oil and lower FDI. Petroleum product and megaproject imports declined 
significantly and were the main drivers of the decrease in imports. Also, s lowing growth and the 
depreciation of the metical affected consumption -related imports such as motor vehicles.  
1.21.   Imports are now dominated  by bauxite, fuel, other extractive -industry -related imports and 
food. In addition to machinery (for megaprojects), key imports include automobiles, electricity, 
sugar and medicine. South Africa is the top exporter to Mozambique, followed by the E uropean 
Union, China and the United Arab Emirates. Imports of manufactured goods still originate primarily 
from developed countri es, especially the E uropean Union, but they are facing serious competition 
from products originating from developing Asian economies. Manufactured imports from China 
have increased significantly during the review period.  
1.22.   At around US$3.3 billion, services imports are roughly the same size as Mozambique's total 
merchandise exports. Throughout the review period, Mozambique has remained a large net 
importer of services, in particular of freight transport services, construction, and consulting, 
professional and  trade -related services (Table1.2). The strong growth in services imports was 
partly counteracted by improvements in the services balance in 2015 which noted a reduction in 
construction and professional services, a side effect of lower investment. Tourism is a significant 
services export for Mozambique, albeit at a modest level.  
Table 1.2 Trade in services, 2008 -2015  
(US$ million and %)  
 2008  2009  2010  2011  2012  2013  2014  2015  
Exports (US$ million)  555.3  611.7  244.9  366.0  792.1  645.5  724.9  722.6  
 (% of total)  
Transport  28.5 25.2 34.6 46.6 41.3 57.7 59.7 60.4 
  of which: freight  7.2 7.4 6.4 15.2 10.6 12.1 13.1 17.7 
Travel  34.2 32.0 44.1 37.8 23.9 30.8 28.5 26.7 
Construction  3.3 2.5 0 0 0 0 0 0 
Insurance an d pension 
services  0.3 0.4 0 0 0 0 0 6.7 
Financial services  0.6 0.7 1.6 1.3 0.4 0.1 0.0 0.0 
Telecommunication, 
computer, and information 
services  6.0 5.7 15.6 9.7 4.0 4.4 3.6 2.3 
Research and development  0 0 0 0 0 0 0 0 
Consulting and professional 
mana gement  0 0 0 0.1 0.3 0.2 0.2 0.6 
Technical assistance and 
other trade -related services  15.0 22.5 4.1 4.4 30.1 6.7 8.0 3.4 
Personal, cultural, and 
recreational services  0.1 0.0 0 0 0 0 0 0 
Government goods and 
services n.i.e.  12.0 11.1 0 0 0 0 0 0 
Other  services  0.0 0.0 0 0.1 0.0 0 0 0 
Imports (US$ million)  965.3  1,044.3  1,213.7  2,250.6  4,497.8  3,904.3  3,657.1  3,344.7  
 (% of total)  
Transport  39.1 34.8 31.2 25.2 22.6 26.3 22.3 26.0 
  of which: freight  34.0 29.5 26.1 21.8 16.0 18.8 19.6 20.4 
Travel  21.6 20.3 17.8 10.2 4.1 6.2 6.9 6.7 
Construction  3.5 10.2 10.1 27.0 43.9 21.3 6.3 3.0 
Insurance and pension 
services  0.4 0.7 2.9 2.4 1.8 3.2 3.0 4.2 
Financial services  1.0 1.2 1.4 0.6 0.2 0.2 0.3 0.5 
Telecommunication, 
computer, and information 
services  3.5 3.6 5.6 3.2 1.5 4.4 2.2 2.1 
Research and development  0 0 0 0.0 0.1 0.1 0.1 0 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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   2008  2009  2010  2011  2012  2013  2014  2015  
Consulting and professional 
management  0.1 0 0.7 0.5 0.7 0.4 16.3 5.3 
Technical assistance and 
other trade related services  25.6 23.2 26.8 28.7 23.8 36.1 41.1 50.4 
Persona l, cultural, and 
recreational services  0.1 0.2 0.1 0.2 0.0 0.0 0.0 0.1 
Government goods and 
services n.i.e.  4.9 5.5 3.1 1.9 1.1 1.2 0.9 1.2 
Other services  0.2 0.3 0.3 0.2 0.2 0.6 0.5 0.6 
Note:  0.0 refers to >0 and <0.05.  
Source:  Banco de Mozambique. Viewed in September 2016 at: http://www.bancomoc.mz/Noticias.aspx . 
1.3.2   Foreign direct investment (FDI)  
1.23.   FDI inflows to Mozambique were strongly influenced in the early 2000s by two 
megaprojects: the Mozal project for aluminium and the Sasol project in the gas sect or. These 
projects set the trend for subsequent FDI inflows which have been mostly export -oriented and 
concentrated in mining and in  oil and gas. During the review period, extractive industries have 
accounted for well over half of FDI inflows (Table s 1.3 and A1.5). Construction and manufacturing 
have also attracted FDI but remain dependent on the extractive sectors, as much activity in 
manufacturing results from inflows linked to the Mozal aluminium smelter.  
Table 1.3 FDI inflows, by sector , 2008 -2015  
(US$ million and %)  
 (US$ million)  (% of total)  
2008  2009  2010  2011  2012  2013  2014  2015  2008  2015  
Total  591.6  898.3  1,017.9  3,558.5  5,629.4  6,175.1  4,901.8  3,710.8  100.0  100.0  
of which: 
Megaprojects  213.2  467.7 675.7  2,193.0  4,076.9  4,703.3  2,595.4  2,593.9  36.0 69.9 
By sector            
Agriculture, 
livestock, hunting 
and forestry  98.0 152.2  1.0 9.1 153.9  115.0  118.6  51.9 16.6 1.4 
Fishery  -0.6 -4.3 -3.1 -3.1 15.9 1.0 15.9 -1.3 -0.1 0.0 
Extractive industries 
(coal, oil, gas and 
minerals)  225.0  500.7  938.3  2,126.2  4,374.2  5,469.8  3,060.8  1,856.7  38.0 50.0 
Manufacturing 
industries (food, 
beverages, tobacco, 
textiles, etc.)  184.0  60.9 1.1 317.1  391.6  -143.7  48.2 149.2  31.1 4.0 
Electricity, gas and 
water  1.3 0.0 0.4 8.6 -31.6 72.0 33.8 0.4 0.2 0.0 
Construction  6.9 -2.0 8.0 15.0 28.7 63.2 121.5  105.2  1.2 2.8 
Wholesale and retail 
trade and repair  33.8 26.4 0.0 5.5 71.0 48.1 132.4  53.6 5.7 1.4 
Hotels and 
restaurants  6.2 23.6 4.3 15.9 26.5 39.5 127.4  53.0 1.0 1.4 
Transport,  
storage and 
communications  35.4 128.5  24.2 87.5 98.7 271.7  742.6  899.3  6.0 24.2 
Financial activities  17.0 9.5 34.9 42.9 43.4 107.5  35.9 188.8  2.9 5.1 
Real estate 
activities, renting 
and business 
services  -17.2 -1.9 0.8 14.3 40.6 137.4  454.9  373.5  -2.9 10.1 
Others  1.9 4.6 7.9 919.7  416.5  -6.3 53.0 -19.7 0.3 -0.5 
Source:  Banco de Mozambique. Viewed in September 2016 at: http://www.bancomoc.mz/Noticias.aspx ; and 
statistical information provided b y Mozambican authorities.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  1.24.   FDI reached between US $5 and 6  billion in 2012 and 2 013 and was estimated at 
US$4.9  billion in 2014, or around one third of GDP, and financed 85% of the current account 
deficit. This trend compares favorably to most of the last decade, when FDI financed 35% of the 
deficit. Risi ng aluminium prices were the reason for the considerable expansion in FDI since 2009, 
and the opening of multiple new coal and aluminium mining concessions triggered a doubling of 
FDI inflows after 2011. Most of the FDI originated from Brazil, Mauritius an d South Africa, 
including investments in agriculture and agro -industry. Meanwhile, agriculture, although the 
primary contributor to GDP composition and employment creation, absorbs only a very small 
proportion of private investment.  By 2015, Mozambique had  not secured the energy industry 
investment it expected and, with the coal sector struggling with low prices and export logistics 
difficulties, FDI inflows contracted by 25% in 2015, sinking to pre -2012 levels.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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2  TRADE AND INVESTMENT  REGIMES  
2.1  General Fram ework  
2.1.  There have been no amendments to the Constitution of Mozambique since 20041; hence the 
structure and responsibilities of the executive and legislative branches of government, the 
legislative process and the judicial system remain unchanged. These are  described in 
Mozambique’s previous Review (and summarized in Table A2.1).  
2.2.  Under the Constitution, the hierarchy of legal instruments is: (i) laws, decree -laws, ratified 
international treaties and agreements; (ii) decrees; (iii) Assembly resolutions and Co uncil of 
Ministers' resolutions; and (iv)  ministerial diplomas. Legal acts of the Assembly, President and 
Council of Ministers must be published in the Government Gazette (Boletim da Rep ública). The 
Gazette is available online but the website is not up -to-date; the most recent editions posted 
online are from 2009.2   
2.3.  Over the review period there have been changes to several of the main trade -related laws 
and regulations of Mozambique, namely in the areas of: tariffs, customs procedures, taxation, 
investment , mining, petroleum, incentives, intellectual property rights, competition policy, 
government procurement, fisheries, electricity, civil aviation, foreign exchange, insurance, 
megaprojects, and state -owned companies. Mozambique's Commercial Code and Labour  Law have 
also been amended (Table 2.1).  
Table 2.1 Mozambique' s principal trade -related laws and regulations, April 2016  
Sector  Law/Instrument  
Investment (except for 
mining and petroleum)  Law No. 3/1993 of 2 4 June 1993 (Investment Code) and Decree Law No. 43/2009 
of 21 August 2009 (Investment Law Regulation)  
Public –private 
partnerships  Law No. 15/2011 of 10 August 2011 (Law on Public –Private Partnerships, Large -
Scale Projects and Company Concessions ); and it 's implementing regulations 
(Decree No. 16/2012 of 4 of July 2012 and Decree No.  69/2013 of 
20 December  2013)  
Commercial Code  Decree No. 2/2005 of 27 December 2005 as amended by Law No. 3/2009 of 
12 January 2009 (Commercial Code)  
Labour Law  Law No. 23/20 07 of 1 August (Labour Law)  
Land legislation  Law No. 19/1997 of 1 October 1997 (Land Law)  
Customs tariff  Law No. 6/2009 of 10 March  2009 (Customs Tariff Schedule)  
Customs valuation  Decree No. 38/2002 of 11 December 2002 (Rules for Determining the Customs 
Value of Imported Goods)  
Customs procedures  
 Decree No. 34/2009 of 6 July 2009 (General Rules for Customs Clearance of 
Goods)  
Ministerial Diploma No. 16/2012 of 1 February 2012 (General Rules for Customs 
Clearance of Commodities Regulation)  
Ministeria l Diploma No. 314/2012 of 23 November 2012 (Authorized Economic 
Operator Regulation)  
Decree No. 18/2011 (Customs Clearing Agents' Regulation)  
Custom s transit  Ministerial Diploma No. 116/2013 of 8 August 2009 (Customs Transit Regulations)  
Value Added Tax   Law No. 32/2007 of 31 December 2007 (VAT Code)  as amended by Law 
No. 3/2012 of 23 January 2012  
Decree No. 7/2008 of 16 April 2008 (VAT Regulations)  
Excise taxes  Law No. 17/2009 of 10 September 2009 (Specific Consumption Tax Code)  as 
amended by Law No. 5 /2012 of 23 January 2012 and Law No. 2/2013 of  
7 January 2013  
Import licences and 
prohibitions  Decree No. 34/2009 of 6 of July 2009 (General Rules for Customs Clearance of 
Goods)  
Pre-shipment inspection  Ministerial Diploma 19/2003 (Regulation on Pre -Shipment Inspection)  as amended 
Ministerial Diploma No. 244/2011 of 18 October 2011  
Technical standards and 
regulations  Decree Law No. 2/2010 of  31 December 2010 (Metrology Regulations)  
Decree No. 59/2009 and Decree No. 19/2010 (Standardization and Conform ity 
Assessment Regulation)  
Resolution No. 51/2003 of 30 November 2003 (Quality Policy and Implementation 
Strategy)  
                                                
1 Constituti on of the Republic of Mozambique. Viewed at: 
http://confinder.richmond.edu/admin/docs/Constitution_(in_force_21_01_05)(English) -Mozlegal.pdf .  
2 National Press of Mozambique. Viewed at: http://www.imprensanac.gov.mz .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Sector  Law/Instrument  
Sanitary and 
phytosanitary measures  Decree No. 26/2009 of 17 August of 2009 (Animal Health Regulations)  
Decree No. 5/2009 of 01 June of 200 9 (Regulation of Phytosanitary Inspection and 
Vegetal Quarantine)  
Decree No. 6/2009 of 31 March 2009 (Pesticide Management Regulation)  
Decree No. 11/2013 of 10 April 2013 (Regulation on Fertilizer Management)  
Decree No. 12/2013 of 10 April 2013 (Seed Regul ation)  
Decree No. 15/2006 of 22 June of 2006 (Regulations on Hygienic -Sanitary 
Requirements of Production, Transport, Trade, Inspection and Surveillance of Food)  
Export prohibitions and 
restrictions  Decree No. 34/2009 of 6 July 2009 (General Rules for Customs Clearance of 
Goods)  
Incentives (including 
Special Economic Zones 
and Industrial Free 
Zones)  Law No. 4/2009 of 12 January 2009 (Code of Fiscal Benefits); Decree Law 
No. 43/2009 of 21 August 2009 (Investment Law Regulation)  
Competition policy Law No. 20/2013 of 20 March 2013 as amended by Decree No. 97/2014 of 
31 December 2014 (Competition Law)  
Government 
procurement  Decree No. 5/2016 of 8 March 2016 (Public Procurement Regulations)  
Intellectual property 
protection  Decree No. 47/2015 of 31 December 2 015 (Industrial Property Code); Law 
No. 4/2001 of 27 February 2001 (Copyright Law)  
Fisheries  Fisheries Law No. 22/2013 of 1 November 2013  
Aquaculture  Decree No. 35/2001 of 11 November 2001  
Mining Law  Law No. 20/2014 of 18 August 2014 (Mining Law)  
Petroleum Law  – oil and 
gas Law No. 21/2014 of 18 August 2014 (Petroleum Law)  
Electricity  Law No. 21/1997 of 1 October 1997 as amended by Law No. 15/2011 of  
10 August 2011 (Electricity Law)  
Banking services (credit 
and finance institutions)  Law No. 9/2004 of  21 July 2004 (Credit Institutions and Financial Societies Law)  
Insurance  Law No. 3/2003 of 21 January 2003 (Insurance Law)  as amended by Decree Law of 
01/2010 of 31 December 2010  
Telecommunications  Law No. 4/2016 of 3 June 2016 (Telecommunications Law)  
Maritime transport  Law No. 4/1996 of 4 January 1996 (Maritime Law)  
Civil aviation  Law No. 5/2016 of 14 June 2016 (Civil Aviation Law)  
Tourism  Law No. 4/2004 of 17 June 2004 (Tourism Law); Resolution No. 14/2003 of 
4 April 2003 Approving the Implementat ion of the Tourism Policy and Strategy; and 
Resolution No. 47/2008 of 14 October 2008 Establishing Brand Mozambique.  In 
addition there are various laws and regulations relating to tourist activities; tourist 
enterprises, food and beverages and dance halls;  gambling; and areas of tourist 
interest.  
Source:  WTO document WT/TPR/S/209/Rev.1, 30 June 2009; Mozambique Community Network SA (MCNET) 
online information. Viewed at:  https://mcnet.co.mz ; and other government sources.  
2.4.  The Ministry of Industry and Commerce (MIC) remains responsible for implementing trade 
and industrial policy. It is in charge of WTO -related matters and negotiating trade and investment 
agreements. Various government bodies have investment -promotion -relate d responsibilities (see 
below). Other ministries involved in trade -related matters include the Ministry of Economy and 
Finance, which is in charge of the tariff, customs, taxation and government procurement3, as well 
as those responsible for sectoral matte rs (Section  4). 
2.5.  In the context of a recent Diagnostic Trade Integration Study for Mozambique, it was 
suggested that formal mechanisms should be established to coordinate trade policy among 
government agencies, since there are a multiplicity of bodies respo nsible for trade, with 
overlapping mandates. Additionally it has been recommended that a mechanism for public -private -
sector dialogue on the development and execution of trade policy also be established.4 The 
authorities indicated that they are aware of th ese recommendations and are working to improve 
consultation mechanisms. They also noted that a representative responsible for trade issues from 
                                                
3 The Ministry of Planning and Development and the Ministry of Finance were merged in 2015 . 
4 The Diagnostic Trade Integration Study for Mozambique recommended that formal mechanisms  be 
established to promote greater dialogue between the public and private sectors in the development and 
execution of trade policy, and that consultations  (which are largely non -existent)  be undertaken  with the 
private sector at the provincial level. USAID Speed Program, Revised Diagnostic Trade Integration Study for 
Mozambique . Viewed at:  http://www.speed -program.com/wp -content/uploads/2016/02/Mozambique -
Diagnostic -Study -on-Trade -Integration -in-National -Development -Policies -August -2015-EN.pdf .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  the Confederation of Economic Associations of Mozambique (CTA) is routinely consulted by the M IC 
on trade policy  issues and participates in trade negotiation consultations.  
2.6.  The recent creation of a formal framework for dialogue between the Government and private 
sector on economic policy -making more generally may indirectly help to encourage stakeholder 
inputs on t rade policy issues. This so -called "Public –Private Dialogue Model" was set up in April 
2015. The Business Environment Monitoring Council holds three meetings  each year. The Council 
comprises all government ministers and the private sector, as represented b y the CTA (the CTA's 
representation comprises three CTA members from each province). The Council is headed by the 
Prime Minister of Mozambique and assisted by the Minister of Commerce. The purpose of the 
Council's first meeting  of the year  is to decide on a new reform action matrix for the year  ahead ; 
its second meeting is  used to monitor progress in implementing these reforms; and its third 
meeting is  used to evaluate reforms undertaken and consider the next set of reforms for the 
following year. There is also a private sector conference headed by the President of Mozambique 
which takes place once a year, to which the reforms undertaken by the Business Environment 
Monitoring Council are presented.  
2.7.  The World Bank has suggested that in order to engage the pu blic in the development of 
regulations, government officials should publish proposed regulations in a federal journal and 
distribute drafts directly to specific stakeholders.5  
2.2  Trade Policy Objectives  
2.8.  Mozambique' s stated trade objective is to create an env ironment conducive to promoting the 
competitiveness of Mozambican products in international markets, especially those of the 
developed economies of Europe, America and Asia, without prejudice to the promotion of 
intra-African trade, which is considered to be an important part of Mozambique' s trade policy. As 
explained by the authorities, trade policies are formulated with a view to aiding Mozambique' s 
industrialization process by creating linkages with international value chains and by reducing the 
barriers  to imports of key inputs.6 As reported by the authorities, the Government is preparing a 
new Policy and Commercial Strategy due to be issued at the end of 2017 ; this will replace the 
1998 strategy , which is now out of date.7 
2.9.  Trade and investment -related p olicy objectives are also contained in the Government 's 
Five-Year Plans.8 The current Plan is for the period 2015 -2019 and it is the Government's 
framework document for galvanizing donor support for its development priorities. Previously, the 
Government ha d also simultaneously issued Action Plans for the Reduction of Poverty (PARP), the 
latest being PARP 2011 -2014.9 However, these PARPs have been discontinued in an effort to 
streamline planning. The objectives of the Five-Year Government Programme for 2015 -2019 are 
to: increase employment, productivity and competitiveness in Mozambique; improve the living 
conditions of Mozambicans in rural and urban areas; and promote peace and democracy.10 Among 
the many specific trade and investment -related measures listed to achieve these objectives are 
efforts to: strengthen international cooperation at bilateral, multilateral and regional levels; 
diversify export products and destinations; promote export -orientated industrialization; improve 
standardization and certificat ion systems; maximize local content and value -added in the 
                                                
5 World Bank Doing Business in 2016. Viewed at: http://www.doingbusiness.org/reports/global -
reports/doing -business -2016.  
6 WTO document WT/TPR/G/209, 18 March 2009.  
7 The 1998 Policy and Commercial Strategy was approved through Resolution No. 25/98 of 1 July 1 998 
and came into force in 1999.  
8 Five-Year Government Programme 2015 -2019. Viewed at: 
http://www.portaldogoverno.gov.mz/por/Governo/Documentos/Planos -e-Programas -de-Governacao/Plano -
Quinquenal . 
9 The PARP III  (2011 -2014, extended to 2015)  was built on th e objectives and strategies set out in 
PARPA  II (2005 -2009) , which was described in Mozambique’s previous TPR. Its overarching goal was to reduce 
the incidence of food poverty from 54.7% of the population to 42% by 2014. Its general objectives were to: 
(i) increase output and productivity in the agriculture and fisheries sectors; (ii) promote employment; 
(iii) foster human and social development while simultaneously focusing on governance (see below) and 
(iv) manage fiscal and macroeconomic affairs.  
10 The five specific priorities of the plan are: (i) consolidation of national unity, peace and sovereignty; 
(ii) development of human and social capital; (iii) promotion of employment, productivity and competitiveness; 
(iv) development of economic and social infr astructure; and (v) sustainable management of natural resources 
and the environment.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  processing of Mozambique's natural resources; promote infrastructure development (including 
through public -private partnerships); put in place measures to protect domestic industries; 
establish exp ort processing and special economic zones; and improve the business environment.  
2.10.   Other broad policy strategies contain ing economic elements  that are  currently being 
implemented are: Agenda 2025 which was issued in 2003; the National Development Strategy 
(2015-2035), issued in 2014  (Section 4.4) ; and the Industrial Policy and Strategy (2016 -2025), 
issued in 2016.  
2.11.   Agenda 2025 serves as a broad guide for the development of Mozambique until 2025, 
formulated by a Committee of Counsellors comprised of Mozambican s from different segments of 
Mozambican society. Among the themes considered by the Council are: economy and 
development; rural development; infrastructure; and challenges to development.  
2.12.   The Industrial Policy and Strategy 2016 -2025 (Resolution No. 23/201 6) replaces the 
Government's Industrial Policy and Strategy of 2007 (Resolution No. 38/2007). Its overall 
objective is to make industry the main vehicle for economic growth, increased employment, 
improved living standards, and development of the country's natural resources. It sets out eight 
pillars for industry development: (1) infrastructure for economic development; (2) development of 
human capital; (3) business training and protection of the domestic industry; (4) access to 
adequate funding; (5) promoti on of business links; (6) incentives for investment in the industrial 
sector; (7) innovation, access to technology and research and development; and (8) the definition 
of an institutional model suitable for industrial development promotion. It also sets ou t various 
priority industries, namely: the food and agro -industry; clothing, textiles and footwear; non -
metallic minerals; metallurgy and the manufacture of fabricated metal products; wood processing 
and furniture; chemicals, rubber and plastics; and paper  and printing. Furthermore, it  proposes 
various stimulus measures to generate quick impact gains; these include: infrastructure 
investments through public –private partnerships; promotion of access to financing; a review of the 
current package of investment  incentives; and customs and tax incentives to protect domestic 
industry. The Strategy proposes that , over the period 2016 -2019, activities should be developed 
that can be tied in to  the Government's above -mentioned Five -Year Programme  and that, ov er the 
second period (2020 -2025) , a mid -term evaluation be made.11 
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.13.   Mozambique became a WTO Member on 26 August 1995.12 It grants at least most -favoured -
nation (MFN) treatment to all its trading partners. It is not a party to any  of the plurilateral 
agreements or to the protocols and agreements concluded under WTO auspices. It has never been 
engaged in any WTO dispute settlement activity as a complainant, respondent or third party. On 
6 January  2017, Mozambique ratified the WTO Tr ade Facilitation Agreement.13 In the context of 
this Review, Mozambique highlighted that its main priority at the WTO is to ensure continued 
preferential market access to the global market so it can use trade as an instrument of 
development. It wants to see  the Doha Development Agenda round of trade negotiations 
concluded with results that can allow Mozambique to pursue its development policies in a more 
certain environment.  
2.14.   As at the time of Mozambique's previous Review, Mozambique's notifications to the WT O are 
outstanding in several areas, including agriculture (export subsidies); TRIMS; import licensing; 
procedures for quantitative restrictions; customs valuation; rules of origin; its tariff; import data; 
and safeguards.14 Additionally, it has not notified  to the WTO Secretariat its RTAs with Zimbabwe 
and Malawi. This notwithstanding, Mozambique has made an effort to improve its notification 
record . Mozambique  has made 14 notifications since 2009 (Table 2.2) , whereas it had only made 
                                                
11 Ministry of Industry and Commerce Industrial Policy and Strategy 2016 -2025 (May 2016). Not 
available online.  
12 Resolution of the Council of Ministers No. 31/94 of 20 Sep tember 1994.  
13 WTO, "Mozambique ratifies the Trade Facilitation Agreement", 6 January 2017.  Viewed at: 
https://www.wto.org/english/news_e/news17_e/fac_06jan17_e.htm . 
14 WTO Secret ariat information obtained from the Central Registry of Notifications (reminder of 
notification obligations as at 31 December 2015).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  two notifications over the period between its accession to the WTO until the end of the previous 
review period.15 The authorities indicated that meeting notification obligations is quite burdensome 
and is an area where Mozambique will continue to need technical assistance.  
Table 2.2 Notifications under WTO Agreements, 1 January 2009 to 1 November 2016  
Legal provision  Description of requirement  Frequency  WTO document  
Agreement on the Implementation of Article VI  of the  GATT 1994  
Article 16.4  Anti-dumping actions taken 
over the past six months  Biannual  G/ADP/N/193/MOZ, 1 July 2010  
Article 16.5  Investigating authority  Once, then changes  G/ADP/N/193/MOZ, 1 July 2010  
Agreement on Technical Barriers to Trade  
Articles 2,3,5 
and 7  Propose d and adopted 
technical regulations  Before or 
immediately after 
the measure is taken  G/TBT/N/MOZ/9, 28 February 2014  
G/TBT/N/MOZ/8, 30 August 2014  
G/TBT/N/MOZ/7, 29 May 2013  
G/TBT/N/MOZ/6, 29 May 2013  
G/TBT/N/MOZ/5, 19 October 2012  
G/TBT/N/MOZ/4, 19 Octob er 2012  
G/TBT/N/MOZ/3, 19 October 2012  
G/TBT/N/MOZ/2, 30 April 2012  
G/TBT/N/MOZ/1, 23 April 2012  
Understanding on the Interpretation of Article XVII of the GATT 1994 (state trading)  
Article XVII:4(a)  State -trading activities  Annual  G/STR/N/12/MOZ, 4 Augu st 2009  
Agreement on Subsidies and Countervailing Measures  
Article 25.11  Countervailing duties applied 
over the past six months  Biannual  G/SCM/N/202/MOZ, 23 April 2010  
Article 25.12  Investigating authority, 
domestic investigation 
procedures  Once G/SCM/N /202/MOZ, 23 April 2010  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7 and 
Annex B  Proposed SPS regulations 
(including proposed or 
emergency measures)  Ad hoc  G/SPS/N/MOZ/2, 30 April 2012  
G/SPS/N/MOZ/1, 12 April 2012  
Source : WTO Secretariat Documents Online. Viewed at: https://www.wto.org/english/res_e/res_e.htm.hjk . 
2.3.1.1   Enhanced Integrated Framework (EIF) and Aid for Trade  
2.15.   Mozambique is a beneficiary of trade -related technical assistance provided under the EIF. 
According to the authorities, Mozambique has made notable progress in the following areas since 
2012: (a) completing and validating the Diagnostic Trade Integration Study Update in December 
2014; (b) defining  the corresponding action matrix containing 16 priority areas, sub -divided into 
five strategic objectives to be implemented over the short, medium and long term; and 
(c) establishing a National Implementation Unit (NIU) to provide support to the MIC and ke y trade 
policy stakeholders on (i) policy and project design and implementation  and (ii) aid for trade 
issues; and (d) engagement with development partners and agencies at the national and 
international levels.  
2.16.   In April 2015 , the EIF's National Steering Co mmittee identified five priority areas in which  
Mozambique should seek support from development partners and fully commit its human, 
technical and financial resources, at least in the medium term: (i) identify ing and reduc ing 
non-tariff barriers; (ii) upda ting, validat ing and implement ing the National Export Strategy to 
contribute to the integration of Mozambique in global value chains; (iii) prepar ing and negotiat ing 
market access offers and requests on strategic service sectors within the context of Mozam bique's  
RTAs; (iv) assess ing the impact of the WTO Trade Facilitation Agreement and elaborat ing a 
roadmap for its implementation; and (v) promot ing linkages between local firms and the extractive 
industry.  
2.17.   Under the EIF , Mozambique has also benefited from trade -related capacity building and 
technical support activities and has used the EIF to secure additional funding (outside of the EIF 
Global Trust Fund) to revise its 1998 trade policy and strategy (Section 2.2).  
                                                
15 Over the period 1995  to end-2008, the only notifications that Mozambique had made were: 
(1) Notification under Article 22  of the Agreement on Implementation of Article VII of the General Agreement 
on Tariffs and Trade 1994 (customs valuation), WTO document G/VAL/N/1/MOZ/1, 4 July 2005; and 
(2) Notification under Paragraph C of the WTO TBT Code of Good Practice  – Notification  of Acceptance, WTO 
document G/TBT/CS/N/69, 8 July 1997.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  2.18.   In the context of this Review, Mozambique indicated that it still regards Aid for Trade as 
essential to achiev ing the high standards of productivity, quality and reliability required to become 
competitive in regional and international markets. It is also key to helping Mozambique diversify 
its exp orts and recalibrate its economy away from dependence on commodities , as well as to 
identify and integrate into global value chains.  
2.3.2   Regional trade agreements (RTAs)  
2.19.   Mozambique has regional trade agreements (i.e. those involving reciprocal exchange of 
preferential access) in force with its South African Development Community (SADC) partners, as 
well as bilaterally with Malawi and Zimbabwe (who are also SADC members). These RTAs were 
described in detail in Mozambique's previous Review and their key features are summarized in 
Table 2.3. The authorities indicated that while Mozambique is  a signatory to the Global System of 
Trade Preferences among Developing Countries (GSTP) , it has  not participated in any trade 
liberalization in this forum.  
2.20.   On 15 July 2014, th e European Union finalized negotiations on an Economic Partnership 
Agreement (EPA) with six SADC members: South Africa, Botswana, Lesotho, Namibia, 
Mozambique and Swaziland.16 Meanwhile Mozambique continues to enjoy duty -free quota -free 
market access to the  EU market under the EU's "Everything But Arms" preferential scheme (see 
below). The EPA was signed on 10 June 2016 and , as at November 2016 , the ratification process 
was under way. It will enter into force 30 days following the deposit of the last instrum ent of 
ratification/approval, with provisional application possible in the meantime. EPAs with other SADC 
economies are being negotiated with other regional partners. The EPA provides for an asymmetric 
exchange of concessions with the European Union provid ing duty -free, quota -free market access 
to Mozambique (and the other parties except for South Africa). Mozambique's schedule of tariff 
concessions is contained in Annex III to the Agreement. There is a transition period of 10 years for 
full implementation of the tariff reductions contained therein. As reported by the European Union, 
at the end of this period , 74% of customs duties (in volume terms) will have been eliminated on 
EU goods imported into Mozambique.17  
2.21.   The EPA, inter alia , contains articles on co operation and/or exchange of information in the 
areas of: customs and administration; sustainable development, including labour and 
environmental protection; standard  setting; intellectual property rights; competition policy; and 
public procurement. It als o leaves open the possibility of entering into future negotiations in the 
areas of: services; investment in economic areas other than services; IPRs; competition; and 
public procurement. The introduction of new export taxes is prohibited, unless in tempora ry, 
exceptional and specific circumstances and following a consultation process. Fees and charges 
imposed by Governments in connection with imports and exports, other than import and export 
duties, must not exceed the cost of the service rendered. There ar e provisions on the application 
of bilateral safeguards; agricultural safeguards (for certain products imported into SADC from the 
European Union); food security safeguards; and infant industry protection safeguards. Export 
subsidies in agriculture are pro hibited.18 
2.22.   Within SADC, a key development over the review period was the completion of the 
transition period for full implementation of the Free Trade Area; Mozambique's tariff reductions 
were completed with all SADC countries (except South Africa) in 2012 and with South Africa in 
2015. The SADC Investment Protocol entered into force in 2010. The SADC Protocol on Trade in 
Services was approved by SADC Heads of State and Government in August  201219 and ratified by 
Mozambique in September 2014. The SADC Protoco l on Employment and Labour was approved by 
SADC Heads of State and Government in 2014.20 The Services Protocol seeks progressive 
liberalization of trade in services with a view to ultimately creating a single market for trade in 
services. Promoting sustaina ble economic growth and enhancing the capacity and competitiveness 
                                                
16 European Commission online information. Viewed at: http://ec.europa.eu/ trade/policy/countries -and-
regions/regions/ sadc. This Agreement replaces a 2009 interim EPA (which was signed but never ratified). An 
early announcement notification has been made to the WTO Secretariat to this effect.  
17 European Commission online information. Viewed at: 
http://trade.ec.europa.eu/doclib/docs/2014/october/tradoc_152818.pdf . 
18 The text of the EU -SADC EPA was viewed at: 
http://trade.ec.europa.eu/doclib/docs/2015/october/tradoc_153915.pdf . 
19 SADC online information. Viewed at: http://www.sadc.int/documents -publications/show/1933 . 
20 SADC online informat ion. Viewed at: http://www.sadc.int/documents -publications/protocols/ .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  of services sectors are among its objectives. A first round of negotiations to liberalize services in 
six priority areas commenced in April 2012 with the development of a roadmap for negoti ations. 
The priority areas are: communication services, construction services, energy -related services, 
financial services, tourism services and transport services.21 Mozambique has submitted requests 
and offers on: tourism services; financial services; tra nsport services ; and communications 
services. As noted by the authorities, Members agreed a new deadline to conclude the current 
round by September 2016 , but they are facing challenges in scheduling their offers.   
2.23.   Other developments at the SADC level have included: the development of a SADC 
Investment Portal, which is intended to provide information on the SADC investment climate and 
opportunities22 and the development of a SADC Regional Infrastructure Development Master 
Plan.23 Negotiations to establish a cu stoms union are ongoing. Work is also ongoing to harmonize 
customs rules and procedures, and sanitary and phytosanitary measures and to eliminate 
non-tariff barriers ( Section  3).  
2.24.   The authorities indicated that Mozambique is not currently negotiating any o ther reciprocal 
trade agreements.  
Table 2.3 RTAs in force, 2016  
Southern African Development Community (SADC)  
Parties Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, 
Malawi, Mauritius, Mo zambique, Namibia, South Africa, Swaziland, Tanzania, 
Zambia and Zimbabwe  
Date of signature/entry into 
force SADC Trade Protocol: 1996/2000. The Protocol set an 8 -year transition period 
after entry into force for completion of the free trade area (by 2008 ), with 
substantially all trade liberalized.  
End of transition period for 
Mozambique (goods)  2012 for merchandise imports from all SADC members except South Africa. At 
the end of the transition period 99.5% of total tariff lines were duty free.  
2015 for m erchandise imports from South Africa. At the end of the transition 
period 99.6% of total tariff lines were duty free.  
Selected features  Protection of infant industries; cross border investment; competition policy; 
trade facilitation. Trade in services pro tocol adopted in 2012; negotiations to 
liberalize trade in services ongoing.  
WTO consideration status  Factual presentation distributed. Consideration in CRTA on 14 May 2007  
Mozambique's merchandise 
trade with SADC partners 
(2016)  33.4% of total imports; 24.5% of total exports (of which South Africa 
accounts for 30.1% of total imports; 18.3% of total exports)  
WTO document series  WT/REG176  
 
Preferential Trade Agreement between the Government of the Republic of Malawi and the 
Government of the Republic of Mozambique  
Parties  Mozambique and Malawi  
Date of signature/entry into 
force 28.12.2005/20.09.2006  
End of transition period for 
Mozambique (goods)  No transition period – liberalization took effect upon entry into force of 
agreement. Elimination of tarif fs on all items except for: sugar; beer; Coca 
Cola and Schweppes branded soft drinks; refined edible oil; dressed chickens; 
table eggs; un -manufactured tobacco; stationary (excluding exercise books); 
petroleum products; firearms and ammunition; and explosi ves. 
Services covered  No 
WTO consideration status  None 
Mozambique's merchandise 
trade with Malawi (2016)  0.2% of total imports; 0.4% of total exports  
WTO document series  Not notified to WTO  
 
Preferential Trade Agreement between the Government of the Republic of Mozambique and the 
Government of the Republic of Zimbabwe  
Parties  Mozambique and Zimbabwe  
Date of signature/entry into 
force 09.01.2004/01.03.2004  
End of transition period for No transition period – liberalization took ef fect upon entry into force of 
                                                
21 SADC online information. Viewed at: http://www.tis.sadc.int .  
22 The portal may be viewed at: http://www.extranet .sadc.int/english/investment .  
23 SADC Annual Report 2011 -2012. Viewed at: 
http://www.sadc.int/files/1613/7243/4333/SADC_ES_Report_2011 -2012_web.pdf .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Preferential Trade Agreement between the Government of the Republic of Mozambique and the 
Government of the Republic of Zimbabwe  
Mozambique (goods)  agreement. Elimination of tariffs on all items except for sugar; Coca Cola and 
Schweppes branded soft drinks; firearms and ammunition; and explosives; 
motor vehicles; beer; manufactured tobacco.  
Services covered  No 
WTO consi deration status  None 
Mozambique's merchandise 
trade with Zimbabwe (2016)  1.2% of total imports; 2.5% of total exports  
WTO document series  Not notified to WTO  
Source:  WTO online information. Viewed at: http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx ; and UN 
UNSD Comtrade.  
2.3.3   Preferential trade agreements  
2.25.   Mozambique is eligible to benefit from unilateral preferences offered by various WTO 
Members under GSP and/or LDC -specific schemes, name ly: Australia; Canada; Chile; China; the 
European  Union; Iceland; India; Japan; the Republic of Korea;  the Kyrgyz Republic; Morocco; 
New Zealand; Norway; Belarus, Kazakhstan and the Russian Federation; Switzerland; 
Chinese  Taipei; Tajikistan; Thailand; Turkey and the United  States. Of these, new PTAs under 
which Mozambique is entitled to benefit were introduced over the review period by Belarus, 
Kazakhstan and the Russian Federation (in 2010); Chile (2014); China (2010); and Thailand 
(2015).24 Official data from Mozambique was not available on its use of preferential schemes.  
2.3.4   Other agreements and arrangements  
2.3.4.1   African Union (AU)  
2.26.   Mozambique is a founding member of the AU, the successor to the Organization of African 
Unity (OAU). Its aim is to form an economic a nd monetary union. Under the auspices of the OAU 
(and now AU ), the 1991 Treaty of Abuja established the African Economic Community (AEC) and 
set out a six -stage, 34 -year, process to establish an African common market based on the 
coordination and harmoniza tion of tariff and non -tariff measures between various trade and 
sub-regional groups (or regional economic communities). In 2008 , negotiations were launched to 
establish an enlarged tripartite free trade area encompassing the members of the Common Market 
for Eastern and Southern Africa (COMESA), SADC, and the East African Community (EAC) by 
around 2015/2016. Mozambique did not join the Agreement launching the FTA signed in 
June 2015 by some of the tripartite member States, pending the completion of a study to identify 
the possible economic impact for Mozambique of entering into the Agreement; the final results are 
expected by the end of 2016.  
2.27.    A further target to establish a Continental Free Trade Agreement (CFTA) by 2017 was 
endorsed by AU Heads of State at  their summit in 2012. According to the authorities, these 
negotiations are at an early stage; there have been two trade fora in which the technical working 
groups developed terms of reference, had a general debate on modalities for the negotiations and 
adopted the work plan and calendar of negotiations for trade in goods and services.   
2.3.4.2   Accelerated Program for Economic Integration Initiative (APEI)  
2.28.   As part of the regional economic integration process and based on the principles of variable 
speed and geomet ry, Mozambique joined the APEI together with Malawi, Mauritius, the Seychelles 
and Zambia. Together they agreed to accelerate reforms aimed at reducing barriers to trade and 
investment.  
2.29.   The APEI was created as a response to a call for more rapid reforms an d economic 
integration by the Council of Ministers of Finance and by Central Bank Governors of COMESA and 
SADC in 2011. It has the support of the World Bank which has recently approved financing of 
US$29.9 million for Mauritius, Mozambique and the Seychell es to support efforts to improve the 
trading and investment environment.  
                                                
24 WTO Database on Preferential Trade Agreements. Viewed at:  http://www.ptadb.wto.org ; UNCTAD 
GSP List of B eneficiaries. Viewed at: http://unctad.org/en/PublicationsLibrary/itcdtsbmisc62rev6_en.pdf . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  2.30.   The programme covers four pillars, namely the removal of barriers to trade in goods, the 
promotion of trade in services, the enhancement of measures to facilitate trade , and the 
impro vement of the business environment. An MOU to facilitate the movement of business persons 
and professionals amongst the five countries is being negotiated.  
2.3.4.3   Relations with the United States  
2.31.   The Governments of the United States and Mozambique entered into a Memorandum of 
Understanding on a Trade Africa Partnership in 2015  where they jointly identified some areas for 
cooperation and technical assistance, namely: trade facilitation; sanitary and phytosanitary 
measures (SPS); technical barriers to trade (TBT); a nd policies to promote regional trade and 
attract investment. The MOU serves as the basis for the provision of technical assistance and 
capacity building.  
2.4  Investment Regime  
2.4.1   Legal and regulatory framework for investment  
2.32.   Investment in Mozambique (excluding t he petroleum, natural gas and mining sectors) 
remains largely governed by the Investment Code, Law No. 3/1993.25 While compliance with the 
Investment Code is not obligatory in order to set up and run a business in Mozambique, only those 
companies (national or foreign) granted investment licences under the Code may enjoy the 
benefits contained therein. These include: protection of property rights, and compensation for 
expropriation; the remittance abroad of funds earned from investment activities; access to f iscal 
incentives under the Code of Fiscal Benefits ( Section  3.3.1); and dispute settlement.  
2.33.   New implementing regulations to the Investment Code were introduced in 2009 through 
Decree No. 43/2009.26 As stipulated in the Regulations, the Minister charged with  Economy and 
Financial Affairs is mandated to coordinate the investment process. Up until 2016, the Investment 
Promotion Agency (CPI) and the Office for Accelerated Economic Development Zones (GAZEDA) 
were responsible for investment promotion activities, a ssisting investors to implement their 
projects and monitoring compliance; these agencies have since been merged under the 
Investment and Trade Agency ( Section  3.2.4). In order for foreign investors to remit profits 
outside of the country and re -export inve sted capital, a minimum value of foreign direct 
investment (FDI) of Mt2.5 million is required. Otherwise foreign investors must meet one of the 
following three requirements: (a)  generate an annual sales volume of not less than three times 
Mt2.5 million as from the third year of operations; (b) register annual exports of goods and 
services with a value equivalent to Mt1.5 million; or (c) create and maintain from the second year 
of operation direct employment for at least 25 Mozambican nationals who are regis tered with the 
social security system. The Regulations set out the procedures for submitting an investment 
proposal and set a seven -day time frame for the authorities to undertake the necessary inter -
institutional consultations. Competence for approving in vestment projects rests with different 
entities depending on the value of the project and other criteria; approvals must be made between 
three  and 30 days depending on the size of the project, and the authorities must notify investors 
within 48 hours of th e decision being taken. The Regulations also set out the criteria for 
investment in special economic zones, integrated tourism establishment zones and industrial free 
zones ( Section  3.3.1). As noted by the OECD, it is through these economic zones that the 
Government hopes to create more linkages between megaprojects in the extractive industries (i.e. 
                                                
25 The Investment Law Regulations were viewed at: https://www.mcnet.co.mz/leis/outra -
legislacao/legislacao -sobre -investimentos.aspx  (and in English at: 
http://www.acismoz.com/lib/services/translations/Regulation%20on%20Investment%20Law.pdf ). 
26 Decree  No. 43/2009 replaces Decree No. 14/1993. The Decree was viewed at: 
https://www.mcnet.co.mz/leis/outra -legislacao/legislacao -sobre -investimentos.aspx . The authorities indicated 
that key reasons for changing the regulations were to: (a) take into account liberalization initiatives; (b) make 
changes to  minimum investment requirements for foreigners and Mozambicans in order to obtain benefits 
under the Code; (c) formally create the CPI and GAZEDA as the responsible processing agencies; (d) devolve 
certain decision -making power to local authorities; (e) f ormali ze certain procedures; (f) reflect the creation of 
Special Economic Zones (SEZs) (and SEZs focused on tourism); and, (g) reduce the employment and export 
requirements for Industrial Free Zones ( IFZs). WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  aluminium, gas, coal and oil) and other economic sectors with the expectation of reducing poverty 
and generating employment.27 
2.34.   The Government's public infrastru cture investment priorities are set out in its Integrated 
Investment Program me (IIP) for 2014 -17. The IIP was developed in response to the urgent need 
for improved infrastructure to support new projects in the mining sector as well as new 
opportunities in the areas of mining, energy and agriculture. Its fundamental objectives are to: 
improve the economic integration of the country; increase agricultural productivity; reduce 
logistics costs and market access; and increase the value -added and diversification of the national 
economy. Priority areas for investment are: transport, irrigation and energy.28 
2.35.   Table 2.4 provides an overview of Mozambique's investment -related legislation and other 
agreements. Over the review period, key changes to Mozambique's investmen t framework have 
included the above -mentioned new implementing regulations to the Investment Code, and 
revisions to legislation on petroleum, natural gas and mining.  New bilateral investment treaties 
(BITs) have entered into force with the Belgium -Luxembou rg Economic Union ; India;  and Japan.29 
Mozambique also signed a Cooperation and Investment Facilitation Agreement (CIFA) with Brazil in 
2015, which has not yet entered into force.30 Since 2009, Mozambique has been involved as  the 
respondent in one ICSID case  falling under the Mozambique -South Africa BIT, which relates to 
claims arising from the alleged expropriation of prawn -fishing quotas concerning a joint fishing 
operation in which the claimant had allegedly invested. The outcome of the case remains pendin g 
(at November 2016).31 New double taxation agreements have entered into force with Botswana; 
Viet Nam and India.  
2.36.   Mozambique does not maintain a negative list of foreign investment restrictions. In the 
context of this review, the only explicit FDI restricti ons which were found were with respect to the 
profession of customs brokers and the export of cashew nuts.   
Table 2.4 Investment framework, 2016  
Investment -related legislation and agreements  
Domestic legisla tion 
The Investment Code, Law No. 3/1993; Investment Regulations, Decree No. 43/2009; Law of Arbitration, 
Conciliation and Mediation No.  11/1999; Mining Law No.  20/2014; and Petroleum Law No. 21/2014  
International arbitral institutions  
The International  Centre for Settlement of Investment Disputes (ICSID); the ICSID Additional Facility; and the 
International Chamber of Commerce  
Free-trade agreements containing investment provisions  
EU-SADC EPA (not yet entered into force); SADC Investment Protocol (ent ered into force in 2010)  
Bilateral investment treaties (date of entry into force)  
Algeria (2000); Belgium -Luxembourg Economic Union (2009); China (2002); Cuba (2002); Denmark (2002); 
Finland (2005); France (2006); Germany (2007); India (2009); Indonesia (2000); Italy (2003); Japan (2014); 
Mauritius (2003); Netherlands (2004); Portugal (1998); South Africa (1998); Sweden (2007); Switzerland 
(2004); United Kingdom (2004); United States of America (2005); and Viet Nam (2007)  
Other  
Trade and Investment Fram ework Agreement (TIFA) with the United States (2005); Cooperation and 
Facilitation Investment Agreement between Brazil and Mozambique (signed in 2015); membership of 
Multilateral Investment Guarantee Agency (MIGA)  
                                                
27 OECD Investment Policy Reviews Mozambique – 2013. Viewed at: 
http://www.oecd.org/daf/inv/investment -policy/IPR -Mozambique -Oct2013 -summary.pdf .  
28 Integrated Investment Program me, Priority Infrastructure for  2014-2017. Not available online. As 
noted in the IIP, the year 2012 was an important turning point for the country in that major investment 
projects in the mining sector started to export coal. In parallel , there was the discovery of major natural gas 
reserves. However, infrastructure limitations were preventing Mozambique from taking maximum benefit from 
these opportunities.  
29 The following BITs have been signed but have not entered into force: Egypt (signed in 1998); 
Singapore (2016); Spain (2010); the U nited Arab Emirates (2003); and Zimbabwe (1990).  
30 The CIFA seeks to encourage reciprocal investment through intergovernmental dialogue. The CIFA will 
involve wider publication of business opportunities, exchange of information on regulatory frameworks, an d will 
provide for a mechanism to prevent and resolve disputes. Government of Brazil online information. Viewed at: 
http://www.itamaraty.gov.br/en/press -releases/12538 -brazil -mozambique -cooperation -and-investment -
facilitation -agreement -cifa. 
31 UNCTAD online information. Viewed at: http://investmentpo licyhub.unctad.org/ISDS/Details/606 . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Investment -related legislation and agreements  
Double taxation agreements (date of entry  into force)  
South Africa (2008); Macao, China (2008); Botswana (2011); Viet Nam (2011) and India (2011)  
Source:  WTO document WT/TPR/S/209/Rev.1, 30 June 2009; UNCTAD online information. Viewed at: 
http://investmentpolicyhub.unctad.org/IIA/CountryBits/143#iiaInnerMenu ; PLMJ International Legal 
Network online information. Viewed at: 
http://www.plmj.com/xms/files/newsletters/2014/Outubro/Arbitration_in_Mozambique_in_the_o il_a
nd_mines_sectors.pdf ; and  information provided by the authorities.  
2.4.2   Investment promotion  
2.37.   Various different government bodies have responsibility for investment -related activities. A 
newly created Investment Council (Conselho de Investimento) is charged with developing 
investment strategies and policies for consideration by the Council of Ministers.32 Agencies with 
investment promotion responsibilities are the In vestment and Trade Agency (S ection 3.2.4), the 
Agriculture Promotion Centre (CEPAGRI), the Moza mbique Tourism Authority (INATUR), and the 
Institute for the Promotion of Small and Medium Enterprises (IPEME).  
2.38.   Mozambique's investment promotion strategy for the period 2014 -2016 is built on five 
strategic pillars: improvement of the business environment ; promotion of capacity building and 
institutional development; improvement and diversification of investment opportunities; definition 
of the target for investment promotion ; and promotion and development of national 
entrepreneurship. Its intention is to operationalize the goals articulated in other broader strategy 
documents, including Agenda 2025 and the Government's five -year plans.33 
2.5  Framework for Business  
2.39.   The Commercial Code governs the establishment of companies in Mozambique and sets out 
corporate go vernance rules. Under the Code, companies may take one of two forms: LDA 
(Sociedade por Quotas) and SARL (Sociedade Anonima). As noted in Mozambique's previous 
Review, a company may start operating once its Articles of Association have been published in th e 
Government Gazette  (Boletim da República) , it has been registered in the Commercial Register 
and with the local tax authorities, and it has been issued with an operating licence. In 2009, the 
Code was amended to, inter alia : remove the minimum statutory capital requirement applied to 
incorporated companies; introduce new rules on shareholder 's loans and accessory contributions; 
revise the framework applicable to shares in joint -stock corporations and introduce new rules for 
share register books and share transfers; and allow companies to adopt a business year other than 
the calendar year as the annual period chosen for tax purposes.34 
2.40.   All companies or persons wishing to undertake an industrial or commercial activity require a 
licence from the Ministry of Co mmerce.35 Sector -specific licences are required in other areas, such 
as: hospitality; fisheries; municipal services; forestry; hunting; mining; telecommunications and 
commercial maritime transport.36 Various efforts have been made to simplify Mozambique's 
business licensing regime through the issuance of new regulations in 2012 and 2013.37 
                                                
32 The Investment Council was established through Decree No. 44/2009. It is a ministerial body which 
meets twice per year. A technical investment committee assists the Investment Council; it meets four times 
per year an d has been run by the CPI (which is now part of the Investment and Trade Agency (Section  3.2.4) ). 
It comprises directors from all ministries.  
33 Ministry of Planning and Development, Investment Promotion Strategy in Mozambique 2014 -2016. 
Not available onlin e. 
34 Decree Law No. 2/2009 of 24 April 2009. Miranda Law Firm online information. Viewed at: 
http://www.mirandalawfirm.com/uploadedfiles/39/15/0001539.pdf .  
35 Decree No. 39/2003 of 26 November 2003.  
36 Government of Mozambique online information. Viewed at: 
http://www.portaldogoverno.gov.mz/por/Empresas/Licenciamentos .  
37 Decree Law No. 5/2012of 7 March 2012 (replacing Decree No . 2/2008 of 12 March 2008) harmonizes 
procedures, appl icable fees, competences, rights and obligations under the simplified licence. A new Regulation 
on Commercial Licensing Activity was also introduced in 2013 (Decree No. 34/2013 of 2 August 2013), 
replacing Decree No. 49 of 17 November 2004.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  2.41.   In 2011, a new Law on Public –Private Partnerships (PPPs), Large -Scale Projects and 
Company Concessions (Law No. 15/2011 of 10 August 2011 ) entered into force.38 Its 
implement ing regulations entered into force in 2012 and 2013 ( see Table 2.1).39 The Law provides 
the standardized framework and guidelines for contracting, implementing and monitoring PPPs, 
large-scale projects and company concessions. As noted by an external source , the new law is 
intended to instigate a raft of new projects, with investment largely being sought by the 
Government for projects outside Maputo (such as Tete and Nampula) where capital stock, 
infrastructural endowments and standards of living are low.40 Since this Law was enacted, several 
concessions have been granted in the areas of transport and communications; mining ; and 
energy.  
2.42.   In 2016, Mozambique ranked in 133rd place out of 189 economies in the World Bank 's Doing 
Business Report41 and in 133rd place out of 140 economies in the World Economic Forum's 
2015-2016 Global Competitiveness Report42, indicating that while improvements have been made, 
there is significant scope to improve the business environment. The World Bank 's reports over the 
review period have seen Mozambique improve its rankings (from 135th place out of 183 economies 
in 2010) and have highlighted various reforms undertaken, including: (a) facilitating the payment 
of taxes and reducing the associated costs by implementing an online system f or filing social 
security contributions and by increasing the depreciating rate for copying machines; (b) adopting a 
new legal framework for insolvency43; (c) undertaking property registration reforms44; (d) making 
it easier to obtain electricity by reducing  the financial burden of security deposits for new 
connections; (e) introducing a single window for customs transactions ( Section 3);  (f) making it 
easier to obtain construction permits by improving internal processes at the Department of 
Construction and Urbanization (although fees were increased); (g) updating company laws 
following global good practice; (h) simplifying the licensing process for starting up a business; and 
(i) abolishing the minimum capital requirement for setting up a company. Mozambique  has been 
ranked relatively well for dealing with construction permits (31st place in 2016) and resolving 
insolvency (66th place), but poorly for getting electricity (164th place) and enforcing contracts 
(184th place). Mozambique has been identified as one  of the countries in which there are the 
highest number of  procedures  required  to obtain electricity and it has been reported that the cost 
of enforcing contracts through the Mozambican court system can exceed the value of the dispute 
by around 142.5%.45 
2.43.   The World Economic Forum has identified the most problematic factors for doing business in 
Mozambique as being: access to financing; an inefficient government bureaucracy ; and corruption. 
The OECD has highlighted major infrastructure gaps across all sectors46; and the IMF has 
recommended that Mozambique's reform agenda should focus on enhancing public financial 
management, developing the institutional framework to prepare for the management of natural 
                                                
38 Law No. 15/20 11 of 10 August. Viewed at: http://www.ppp.worldbank.org/public -private -
partnership/sites/ppp.worldbank.org/files/documents/lei15 -2011.pdf .  
39 Decree No. 16/2012 of 4 July 2012 and Decree No. 69/2013 of 20 December 2013.  
40 Commonwealth Governance online information. Viewed at: 
http://www.commonwealthgovernance.org/countries/Africa/Mozambique/public -private -partnerships .   
41 World Bank (2016) , Doing Business 2016: Measuring Regulatory Quality and Efficiency . Viewed at: 
http://www.doingbusiness.org/reports/global -reports/doing -business -2016.  
42 WEF Global Competitiveness Report . Viewed at:  
http://www3.weforum.org/docs/gcr/2015 -2016/Global_Competitiveness_Report_2015 -2016.pdf .  
43 The World Bank’s Doing Business Report for 2015 notes that this legal framework introduced a 
reorganization procedure for commercial entities, granted creditors bette r access to information during 
insolvency proceedings and provided for more active participation by creditors in the proceedings. The report 
also contains a table (Table 4.3, page 41) comparing the previous and new legal frameworks. World Bank 
(2015). View ed at: http://doingbusiness.org/reports/global -reports/doing -business -2015.  
44 Reforms noted in the World Bank's 2015 Doing Business report relate to strengthening and 
streamlining registration procedures at the land registry and municipalities and , in its 2011 Report , relate to 
lowering transfer taxes and government fees by 7.5% of the property's value.  
45 World Bank  (2013),  Doing Business 2013: Smarter Regulations for Small  and Medium -Size 
Enterprises . Viewed at : http://doingbusiness.org/reports/global -reports/doing -business -2013. The World Bank 
Doing Business report for 2012 noted that enfor cing contracts had been made easier as judgements were 
made publicly available and that obtaining electricity had become more difficult by requiring the authorization 
of a connection project by the Ministry of Energy and by adding an inspection of the comp leted external works. 
As noted in the World Bank's 2011 report, obtaining electricity involves seven procedures, takes 87 days and 
costs 2,523% of  income per capita.  
46 OECD online information. Viewed at: http://www.oecd.org/daf/inv/investment -policy/IPR -
Mozambique -Oct2013 -summary.pdf . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
- 35 - 
 
  resource wealth, reforming the energy sector, improving acc ess to financial services and 
strengthening the business environment.47 Many of these impediments have been highlighted in 
the Government's Industrial Policy and Strategy for 2016 -2025 (see above), which  also sees key 
barriers to the development of industri al activities as including a lack of qualifications among the 
local workforce; supply deficiencies for water and electricity and their comparatively high cost; an 
unattractive tax system; and delays in customs clearance.48 
2.44.    The Government is engaging in gre ater coordination with the private sector to identify 
needed reforms (see above). The Government's Five -Year Plan (2015 -2019) (see above) has 
pinpointed various priority measures to be undertaken. These are: simplification of procedures, 
improvement of com petitiveness and elimination of barriers to new entrants to the market in order 
to attract investment; speedier procedures relating to land use; the creation of a one -stop shop 
platform for businesses49; and strengthened mechanisms for dialogue and coordina tion between 
the Government and the private sector, prioritizing  the empowerment of the Mozambican private 
sector. Additionally, as part of a 2013 -2017 Strategy to Improve the Business Environment, an 
Inter-Ministerial Group for Removal of Barriers to Inve stments has been set up to assess, 
implement and monitor the implementation of the action matrix contained therein  on a quarterly 
basis.  
                                                
47 IMF Staff Report for the 2015 Article IV Consultation of Mozambique. Viewed at: 
http://www.imf.org/external/pubs/ft/scr/2016/cr1609.pdf .  
48 Ministry of Industry and Commerce, Republic of Mozambique, Industrial Policy and Strategy 
2016-2025 (May 2016). Not available online. Other impediments highlighted are ina dequate infrastructure and 
high transport costs; and difficulties obtaining credit.  
49 The one -stop shop (e -BAÚ) platform has been established in the offices of the Ministry of Industry 
and Commerce and offers various services, including: licensing (and sup plementary) services; registration and 
notary services; migration services; tax and fee collection services; and, civil identification registry services.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE   
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures and requirements  
3.1.  Impor ters (and exporters) in Mozambique must be licensed by the M IC.1 As noted in 
Mozambique's previous Review, foreign persons with the appropriate visa or residency permit and 
foreign businesses established in Mozambique (as a branch, subsidiary or agency) ma y also 
become traders. A numbered "foreign trade operator's identification card" is issued, specifying 
whether the activity is that of an importer or exporter; this costs Mt 819.50.2 Additional 
registration requirements apply to importers of pesticides , seeds and medicinal products.3 
3.2.  Customs operations fall under the remit of the Mozambique Revenue Authority and its 
customs and internal tax services.4 Mozambique's customs regimes include: import and export; 
temporary importation (and exportation); re -import ation (and exportation); customs transit (see 
below); domestic transfer; storage; industrial free zones and special economic zones (see below); 
duty-free shops; and customs warehousing.  
3.3.  Use of a customs broker (clearing agent) continues to be required for  all commercial imports, 
exports and goods in transit. The rules governing customs brokers are set out in Decree 
No. 18/2011 and in Article 82 of the Chamber of Customs Brokers Statute.5 A new Law 
(No. 4/2011) created a specialized body, the Chamber of Cus toms Brokers of Mozambique, which 
regulates the exercise of the profession.6 Customs brokers must be qualified Mozambican 
persons.7 As a result of changes introduced by Decree No. 18/2011, citizens of SADC member 
States are now also eligible to be customs brokers if there is a reciprocity agreement in place 
between Mozambique and their respective State. They must have a residence permit in 
Mozambique and comply with Mozambican legal and tax obligations. The candidate must also 
undertake an examination, comp lete a three -month internship and be licensed by Customs. As at 
November 2016, no SADC nationals had been certified as customs clearing agents in Mozambique.   
3.4.  Customs documentation requirements remain unchanged. These are: a customs declaration 
(Documento Unico ), also available in abbreviated or simplified forms; the original invoice; 
transport documents; insurance certificate; phytosanitary certificate for products of plant origin; 
sanitary certificate for products of animal origin; certificate of origin i n case of access to a 
preferential regime; or any other documents required to support a request for exemption from 
customs duties or taxes.8 Simplified customs procedures are available for (a) goods not subject to 
pre-shipment inspection  (see below) nor re quiring a sanitary or phytosanitary certificate and 
whose f.o.b. value is at or below Mt 37,000; and (b) visitors and returning residents with 
consignments whose f.o.b. value is at or below Mt 12,000. Customs does not provide advance 
rulings on classificat ion or valuation of goods to be imported.  
                                                
1 Decree No. 49/2004 of 17 November 2004 and Customs Authority online information. Viewed at: 
http://w ww.at.gov.mz/eng/Tabelas -de-Requisitos/Importador -Exportador . 
2 Ministry of Industry and Commerce Circular No. 001/MIC/GM/111/2016.  
3 Medicinal products may only be imported by registered importers and an import authorization is 
required for each consignme nt; these are subject to a 0.15% tax on the f.o.b. customs value. For authorization 
to be granted, the products must, in principle, figure in Mozambique's Registry of Medicines (some flexibility 
applies). Likewise, pesticides can only be imported by regist ered importers . Imports  of pesticides  are subject to 
a 0.15% tax on the f.o.b. customs value and the pesticides imported must be listed in Mozambique's Registry 
of Pesticides.  
4 The website for the Mozambique Revenue Authority is: http://www.at.gov.mz . 
5 Customs Clearing Agents' Regulation. Viewed at: 
https://www.mcnet.co.mz/Files/Legislacao/Decretos/Decreto_18_2011.aspx ; and Chamber of Customs Brokers 
Statute. Viewed at: 
http://acismoz.com/mailit2/attachments/20090130091418/2009%20despachante%20reg.doc . 
6 Law No. 4/2011. Viewed at: https://www.mcnet.co.mz/Files/Legislacao/Leis/Lei_4_2011.aspx .  
7 In order to be qualified, Mozambican citizens must possess a minimum academic qualifi cation 
corresponding to a clearing agent technical course or university degree. Clearing agent assistants who have 
practic ed this function for more than five years and possess a high school qualification are also eligible.  
8 The CPI approves investment pro jects and issues documentation for the application of duty 
exemptions (Chapter 2).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.5.  Tax exempt transactions (e.g. for approved investment projects) are subject to a specific fee 
of Mt 2,500 for customs services rendered.  Mozambique also levies fees and charges for: import 
(and export) licences (s ee below); transit fees ( Mt 50 per declaration); making corrections to 
customs declarations ( Mt 500); customs declaration cancellations ( Mt 500); delays to payments of 
duties ( Mt 2,500)9; and charges for scanning.10 Some concerns have been expressed about t he 
overuse of scanning, and its associated costs to importers.11  
3.6.  A major and positive development over the review period was the launch in 2011 of a single 
electronic window (SEW) system for customs processing and clearance operations. The SEW is 
used for both import and export operations and its use is mandatory. Apparently the SEW is 
modelled on those in operation in Ghana and Singapore and complies with international best 
practice. It has two main pillars; the Customs Management System (CMS) and TradeNet . The CMS 
supports customs -related transactions and enables data mining and the generation of statistics.12 
TradeNet is a platform for electronic data interchange between various parties (border control 
agencies, port authorities, freight forwarders, custom s brokers, container terminal operators, 
shipping agents/lines, and commercial banks). The SEW is managed by the Mozambique 
Community Network (MCNet), a public –private partnership in which the Government has a 20% 
share.13 Apparently the SEW cost around US$ 15 million to establish14; its ongoing costs are 
financed through a network charge levied on the customs declarations it processes (Table 3.1). 
Risk profiling is built into the SEW, which largely determines through which customs clearance 
channel goods pass . There are four channels: green (whereby goods are immediately cleared); 
blue (for use by authorized economic operators (see below)); yellow (involving document 
verification and/or scanning); and red (full docume ntary and physical inspection).  
3.7.  In 2016, a total of 261,196 customs declarations were processed. Twenty -five per cent were 
cleared through the green channel, 3% through the blue channel, 0.5% through the yellow 
channel and 72% through the red channel.  Data for the period 2011 to 2016 is listed in Table  3.1. 
Table 3.1 Total customs declarations processed per channel , 2011 -2016  
Year Green  Blue Yellow  Red Total  
2011 36  1 30 67 
2012 9,827   2,551  55,459  67,837  
2013 47,532   7,070  196,707  251,309  
2014 62,222 67 2,152  246,662  311,103  
2015 56,296  5,983  1,427  238,339  302,045  
2016 64,509  7,146  1,180  188,361  261,196  
Source:  Information provided by the authorities.  
3.8.  According to external sources, the SEW system has the capacity to handle 1,500 customs 
declara tions per day. The authorities indicated that implementation of the SEW is at around 96% 
in terms of geographical coverage and some functions still need to be added to the system relating 
to post -clearances, warehouses, auctions and links to other governme nt agencies. Official 
information was not available regarding changes to average clearance times as a result of the 
implementation of the SEW. However, there has been a marked increase in Mozambique's rankings 
under the "trading across borders" pillar of t he World Bank's Doing Business reports; at the time of 
                                                
9 Duties must be paid within 10 days of issuance of the note of payment.  
10 Information was not available on scanning fees.  
11 USAID Speed Program, Revised Diagnostic Trade In tegration Study for Mozambique  (August 2015). 
Viewed at: http://www.speed -program.c om/wp -content/uploads/2016/02/Mozambique -Diagnostic -Study -on-
Trade -Integration -in-National -Development -Policies -August -2015-EN.pdf . 
12 Customs -related transactions include: customs declarations, transit management, guarantees, 
customs valuations, collectio n of duties and fees, risk management, temporary imports/exports of vehicles, 
customs release, warehouse management, offen ce management, auction management, permit/licence 
issuance, and port and freight terminal management. UNECE online information. Viewed  at: 
http://tfig.unece.org/cases/Mozambique.pdf . 
13 Shareholders are: consortium of Escopil Intern acional  and SGS Moçambique (60% share); 
Government (20%) and Confederation of Trade Association (20 %). USAID Speed Program, Revised Diagnostic 
Trade Integration Study for Mozambique  (August 2015). Viewed at: http://www.speed -program.com/wp -
content/uploads/2016/02/Mozambique -Diagnostic -Study -on-Trade -Integration -in-National -Development -
Policies -August -2015-EN.pdf . 
14 UNECE online information. Viewed at: http://tfig.unece.org/cases/Mozambique.pdf . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Mozambique's last Review it was ranked 140th out of 178 economies. In the World Bank's 2015 
report, it was ranked 129th out of 189 economies.15  
Table 3.2 SEW user fees, 2016  
Regime  F.o.b. value 
under US$ 500  F.o.b. value of 
US$ 500 to 
US$ 10,000  F.o.b. value of 
US$ 10,000 to 
US$ 50,000  F.o.b. value  
above  
US$ 50,000  
Imports  US$5  US$24  US$64  0.85%  
Exports  US$24  US$64  
Goods in transit and other 
customs re gimes  US$24  
Source: Ministerial Diploma No. 25/2012 of 12 March 2012.  
3.9.  An Authorized Economic Operator (AEO) scheme for importers and exporters was 
implemented in 2013. As set out in Ministerial Diploma No. 314/2012, there are three types of 
AEO certificat e: AEO -E for exporters; AEO -I for importers; and AEO -EI for importers and 
exporters. Certificates are valid for three years, renewable. In order to be certified as an AEO, 
operators must fulfil certain criteria, namely: have already be en a licensed externa l trade operator 
accredited by the MIC for at least three years; have a satisfactory customs compliance record 
(including tax compliance); have a satisfactory system for the management of commercial records, 
which allows for fiscal and customs control; and  be financially solvent. Before being granted AEO 
status, operators' premises are also subject to a physical inspection by customs.16 The benefits 
conferred on AEOs are: physical and document -based controls only when strictly necessary 
(otherwise imports ar e cleared through the SEW's blue channel); physical controls at locations 
chosen by the operator; priority treatment of consignments if selected for customs control (again 
this is a feature built into the SEW); and advance notification of physical verifica tion if imported 
goods are considered risky or will be subject to post -clearance control or audit (in which case 
15 days advance notification is given). As at October 2016, there were nine approved AEOs; 
imports from these AEOs represented around 3% of Moz ambique's total import value. Mozambique 
has not yet signed any AEO -related mutual recognition agreements (MRAs) with other trading 
partners.  
3.10.   Mozambique is a transit country to Swaziland, South Africa, Zimbabwe, Zambia and Malawi. 
Mozambique's transit reg ime is currently governed by Ministerial Diploma No. 116/2013 (replacing 
legislation from 2012 (Ministerial Diploma No. 307/2012, which in turn replaced legislation from 
2002)).17 The regime applies to forwarding agents, transporters and, since 2013, custom s transit 
warehouse operators. All must be licen sed by the Ministry of Transport and Communications and, 
additionally, forwarding agents must be registered with the Director -General of Customs. The 
Diploma sets out, inter alia , customs control procedures a nd guarantee requirements. With respect 
to the latter, guarantees may be either global (covering various transit operations over a period of 
three months to one year) or isolated (when they cover only one transit operation). Global 
guarantees payable are 3 5% of the total value of customs duties and other charges. Isolated 
guarantees payable amount to 100% of customs duties and other charges. Prior to 2012, both the 
isolated and global guarantees were 100% of the customs value. The Diploma requires guarantee s 
to be refunded within ten working days of confirmation of  conclusion of the transit operation. In 
                                                
15 The World Bank report ed the following data on trading across borders for Mozambique in 2015: 
number of documents to export – 7; time to export – 21 days; cost to export – US$1,100 pe r container; 
documents to import – 9; time to import – 25 days; cost to import – US$1,600 per container. World Bank 
(2015) , Doing Business 2015: Going Beyond Efficiency . Viewed at: 
http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Annua l-Reports/English/DB15 -
Full-Report.pdf . 
16 Ministerial Diploma No. 314/2012 of 23 November 2012. Viewed at: 
https://www.mcnet.co.mz/leis/legislacao -aduaneira.aspx . As noted in an external source, the satisfactory 
security and safety systems that need to be in place in order to be granted AEO status are the following: 
self-assessment carried out by the economic operator; identification and elimination of risks and threats; 
standards for buildings, storage areas and cargo units; clear identification of busines s partners; participation of 
staff in safety etc. training. USAID Speed Program online information. Viewed at : http://www.speed -
program.com/wp -content/uploads/2015/11/2015 -SPEED -Presentation -031-Authorised -Economic -Operators -
EN.pdf . 
17 Customs Transit Regul ations. Ministerial Diploma No. 116/2013. Viewed at: 
http://www.fcfasa.org/sites/default/files/Diploma_Ministerial_116_2013_Eng.pdf . This replaces Ministerial 
Diploma No. 307/2012. Viewed at: https://www.mcnet.co.mz/leis/legislacao -aduaneira.aspx . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  order to facilitate trade, reduce costs and respond to business concerns, 114 ta riff lines (at the 
HS 4-digit level) have been exempt ed from the requirement  to lodge a guarantee (previously, 
30 tariff lines were exempt under the 2012 regulation).18 A transit duty of Mt 50 (around US$0.90) 
per shipment is levied. The Customs Authority is obliged to give priority to transit operations of 
certain goods, namely: l ive animals; newspapers and magazines; medicine; certain hazardous 
materials; and perishable goods. The Diploma also sets out maximum periods of stay of goods in 
transit customs ports (60 days, extendable to 90 in exceptional and authorized circumstances).19  
3.11.   Mozambique is a member of the World Customs Organization and it ratified and acceded to 
the WCO's amended International Convention on the Simplification and Harmonization of Customs 
Procedures (the Kyoto Convention) on 11 July 2012.20 Provisions on custo ms cooperation are 
contained in both the EU -SADC EPA21 and the SADC Trade Protocol22 and apparently the Tripartite 
FTA negotiations also include draft articles on aligning regional customs procedures. As indicated 
by the authorities, Mozambique has signed me moranda of understanding (MOUs) with 
neighbouring countries to facilitate the exchange of information and provide for mutual assistance 
on customs control issues, particularly in relation to: the use of uniform documents; advance 
information for customs re lease; and system interconnectivity. Mozambique has also implemented 
a "one -stop border post" with South Africa; this involves the sharing of border point infrastructure 
so that the South African and Mozambican administrations can make joint controls, veri fications 
and inspections. Benefits include time and cost savings for both  the authorities and 
travellers/economic operators. Other similar agreements are being negotiated with Malawi, 
Swaziland, Zambia and Zimbabwe.23 
3.1.1.1   Pre-shipment inspection  
3.12.   Certain goods,  listed in a table annexed to Ministerial Decree Law No. 19/2003 of 
19 February 2003, are subject to pre -shipment inspection (PSI); this list was most recently 
updated in 2016 (Table 3. 3).24 All goods on the list are subject to PSI regardless of their count ry of 
origin. Since Mozambique's previous Review, PSI requirements have been significantly reduced, 
with the removal of the following items: sugar; matches and lighters; soaps ; used clothing; air  
conditioning units; and fridges and freezers. Additionally, the quantity of cooking oil exempt from 
PSI requirements has been increased from 10 litres to 20 litres. According to the authorities, this is 
because these items are no longer considered to be risky.  
Table 3.3 Imported goods subject to PSI, 2016  
Item  Tariff heading  Exclusions  
Frozen meat and edible parts of 
poultry of position 01.05  Chapter 2  
02.07.12; 02.07.14; 02.07.25; 02.07.27; 
02.07.33; 02.07.36  Quantities up to 10 units  
Flour Chapter 11  
11.02  Quantit ies up to 20 kg  
Cooking oil  Chapter 15  Quantities up to 20 litres  
                                                
18 The Federation of Clearing and Forwarding Associations of Southern Africa. Viewed at: 
http://www.fcfasa.org/resources/mozambique -customs -transit -regulations -procedures . As noted by the 
authorities, the items exempt from the requirement to lodge a guara ntee were chosen based on there being a 
low risk of these goods ending up in Mozambique.  
19 This time limit was not stipulated in previous legislation.  
20 WCO online information. Viewed at: http://www.wcoomd.org/en/about -us/legal -
instruments/~/media/B14C72DB CEFF4BDD94BEC5F8B4B3B7DF.ashx ; and Resolution No. 31/2008 of 30 
December 2008.  
21 Customs Cooperation provisions are mainly set out in Chapter IV to the EPA. European Commission 
online information. Viewed at: http://trade.ec.europa.eu/doclib/docs/2015/october/tradoc_153915.pdf . 
22 The SADC Trade Protocol contains provisions on cooperation in customs matters, trade facilitation and 
transit trade (Articles 13 -15) and annexe s on customs cooperation and simplification; harmonization of trade 
documentation and procedures; and transit trade and transit facilities (Annexes II -IV). SADC online 
information. Viewed at: http://www.sadc.int/documents -publications/protocols/ . 
23 USAID Speed Program, Revised Diagnostic Trade Integration Study for Mozambique  (August 2015). 
Viewed at: http://www.speed -program.com/wp -content/uploads/2016/02/Mozambique -Diagnostic -Study -on-
Trade -Integration -in-National -Development -Policies -August -2015-EN.pdf . 
24 PSI requi rements were first introduced in 1998. The governing legislation is Ministerial Diploma 
No. 19/2003 of 19 February 2003, as amended by Ministerial Diploma No. 244/2011 of 18 October 2011. 
These were viewed at: https://www.mcnet.co.mz/leis/legislacao -aduaneira.aspx . The list of items subject to 
PSI was updated in 2016 by OS No. 05/DGA/2016 of 27 April 2016.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Item  Tariff heading  Exclusions  
15.07; 15.08; 15.11; 15.12; 15.13; 15.15  
Cement  Chapter 25  
25.23  Quantities up to 100 kg  
Chemical products  Chapter 28  None 
Chemical products  Chapter 29  None 
Pharmaceutical products  Chapter 30  
30.01 -30.06  Quantities for personal use  
Cosmetics  Chapter 33  
33.03; 33.04; 33.05; 33.07  Quantities for personal use  
New rubber tyres  Chapter 40  
40.11  Quantities up to 5 tyres  
Used or retreaded rubber tyres  Chapter 40  
40.12  None 
Silk fabrics  
 Chapter 50  
50.07  Quantities up to 10 metres  
Cotton fabrics  
 Chapter 52  
52.08; 52.09; 52.10; 52.11; 52.12  Quantities up to 10 metres  
Synthetic fabrics  Chapter 54  
54.07 (except 5407.42.10 (mosquito 
nets)); 54.08  Quantities up to 10 metres  
Fabrics of synthe tic staple fibres  Chapter 55  
55.12 -55.16  Quantities up to 10 metres  
Dry batteries  
 Chapter 85  
85.06  Quantities up to 10 units  
Vehicles  Chapter 87  
8701-8705; 8711  New vehicles which have 
never been registered in the 
country of manufacture  
Source:  OS No.  05/DGA/2016 of 27 April 2016.  
3.13.   As at the time of Mozambique's previous Review, PSI is undertaken on behalf of the 
Government by Intertek Testing Services (ITS ), a private company.  Exporters of products subject 
to PSI must complete a Pre -Advice Form (PAF) w ith shipment details and send it to Intertek 
together with a pro forma invoice and a Model I2 (duty and/or tax reduction/exemption) 
document, if applicable. Upon receipt of the PAF, Intertek organizes inspection in the country of 
supply. The inspection inc ludes verification of the quantity and quality of the declared goods; tariff 
classification; customs value; and the issuance of a single certificate (DUC) with all the relevant 
information, including a calculation of the taxes to be paid.  The authorities i ndicated that 
Mozambique is considering phasing out PSI and is working with Intertek  to help Mozambican 
officials take over their work . 
3.14.   It is the responsibility of the importer to inform the exporter of PSI requirements. If such 
imports have not been subje ct to PSI, they may not be cleared through customs. However, the 
importer may request customs to undertake a post -landing inspection, subject to a fine of 10% of 
the customs value of the merchandise imported.25  
3.15.   The Government covers the costs of PSI for al l products with the exception of used vehicles.  
Since 2011, exporters of used vehicles have had to pay $265 + VAT/Sales Tax (or equivalent) 
towards inspection costs.26  
3.1.2   Customs valuation and classification  
3.16.   There have been no changes to Mozambique's rules on  customs valuation, which are 
contained in Decree No. 38/2002 of 11 December 2002.27 This Decree was notified to the WTO in 
2005.28 At the time of Mozambique's previous Review, questions were posed about Intertek's 
referral to prices in the country of supply  for the customs valuation of items subject to PSI (see 
                                                
25 Government of Mozambique online information. Viewed at: 
http://www.portaldogov erno.gov.mz/por/Empresas/Comercio -Externo/Regime -Aduaneiro/Descricao -Geral . 
26 Requirement as set out in Ministerial Diploma No. 244/2011. Intertek online information. Viewed at: 
http://www.intertek.com/government/pre -shipment -inspection/exports/mozambique  and MCNet online 
information. Viewed at: https://www.mcnet.co.mz/leis/legislacao -aduaneira .aspx . 
27 Decree No. 38/2002 of 11 December 2002 was viewed at: https://www.mcnet.co.mz/leis/legislacao -
aduaneira.aspx . 
28 WTO document G/VAL/N/1/MOZ/1 , 4 July 2005.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  above), and the consistency of this practice with the Customs Valuation Agreement (CVA). The 
authorities responded that the CVA provides for the right of the customs administration to 
reassure itself of the truthfulness or accuracy of any statement, document or declaration.29 
3.17.   Imports of horticultural products are subject to reference prices. During the harvest season, 
these reference prices are maintained at a high level for duty purposes. Outside this period, 
reference prices may be lowered in order to encourage importers to meet the supply deficit. 
According to the authorities, the Customs Authority sets the reference price in cooperation with 
the Ministry of Agriculture and Food Safety, the MIC and st akeholders. Information was not 
available on the evolution of the reference price over the review period. Reference prices are also 
set for a variety of items sold by small grocer y stores.  
3.18.   Complaints regarding the tariff classification of goods are initial ly handled by the local 
manager of the customs office where the problem is raised. If no agreement is reached, then the 
complaint is submitted to the Director -General of Customs. Appeals can first be made to the 
President of the Revenue Authority and, ther eafter, the Customs Tribunal. The highest and last 
level of appeal is to the Administrative Tribunal, which has a section that deals with these matters. 
Data was not available on complaints over the review period.  
3.1.3   Rules of origin  
3.19.   Mozambique does not use na tional rules of origin for non -preferential purposes.  However, it 
does use rules of origin to establish originating status for imports under preferential trade 
agreements (Table 3. 4). Under SADC, a review of textiles and clothing rules of origin is ongoing  in 
order to simplify these rules.  
Table 3.4 Preferential rules of origin, 2016  
Legal basis  Requirements  
SADC Protocol on 
Rules of Origin  - Requirements for a good to have originating status:  
   (a) be "whol ly produced or obtained" within the member States; or  
   (b) non -originating materials must have undergone sufficient working or processing in 
one or more member States (regional value content (RCV) test appliesa); or  
   (c) there has been a change in ta riff heading as a result of processing of non -originating 
materials (exclusions apply).  
- De minimis /value tolerance provisions apply: the value of all non -originating materials 
must not exceed 10% of the ex -works price of the good (this is not applicable to HS 
headings 50 -63, 87 and 98).  
 
Mozambique –
Malawi RTA  - Requirements for a good to have originating status:  
   (a) be "wholly obtained" in one of the parties; or  
   (b) value -added resulting from the production process must be at least 25% of the ex -
factory cost of the goods.  
 
Mozambique –
Zimbabwe RTA  - Requirements for a good to have originating status:  
   (a) be "wholly obtained" in one of the parties; or  
   (b) value -added resulting from the production process must be at least 25% of the ex -
factory cost of the goods.  
 
EU–SADC EPAb - Requirements for a good to have originating status:  
   (a) be "wholly obtained" in one of the parties; or  
   (b) non -originating materials must have undergone sufficient working or processing 
where the total value of t he non -originating material used does not exceed 15% of the ex -
works price of the product.  
- Contains provisions on bilateral cumulation between parties to the EPA; EU overseas 
countries and territories (OCTs)c and ACP countriesd; cumulation with respect t o materials 
which are subject to MFN duty -free treatment in the EU; and cumulation with respect to 
materials originating in other countries benefiting from preferential duty -free quota -free 
access to the EU.  
a The RCV test requires that the value of non -originating materials of a finished product does not 
exceed the stipulated percentage or  that the value addition in the country of 
                                                
29 WTO document WT/T PR/M209/Add.1, 8 July 2009.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  manufacture/cumulatively in SADC member States is not below the prescribed percentage for goods 
to be considered as originatin g. 
b At the time of writing (June 2016), this agreement had not yet entered into force.  
c There are 25 EU OCTs, which are countries with special links with either: Denmark, France, the 
Netherlands or the United Kingdom.  
d OCT and ACP cumulation applies if agreements of administrative cooperation have been signed 
between the respective countries involved.  
Sources:  WTO document WT/TPR/S/209/Rev.1, 30 June 2009; WTO document WT/REG176/4, 
12 March  2007; SADC Protocol on Rules of Origin. Viewed at: 
http://www.tralac.org/files/2011/11/SADC -Trade -protocol -Annex -1.pdf; SADC Rules of Origin 
Exporters Guide . Viewed at: 
http://www.sadc.int/files/9613/5413/6410/3._Rules_of_Origin__Exporters_Guide_Manual.pdf ; 
EU-SADC EPA (Protocol 1). Viewed at: 
http://tr ade.ec.europa.eu/doclib/docs/2015/october/tradoc_153915.pdf .   
3.1.4   Tariffs and other charges affecting imports  
3.20.   In addition to customs duties, Mozambique levies a surtax on certain imported products 
(Section 3.1.4.2) and a fee for use of the SEW system (Table 3.1). Mozambique also levies various 
other taxes on imports as well as domestic production. These include a value -added tax, an excise 
tax and fees for export and import licen ces. Tax revenue from excise and VAT grew steadily over 
the period under review. With respect to VAT, revenue obtained from imports largely outstripped 
revenue from domestic production, whereas the reverse is the case for excise taxes (Table 3. 5).  
Table 3.5 Taxes on goods and services, 20 09-2015  
(Mt million)  
 2009  2010  2011  2012  2013  2014  2015  
Customs duties  4,133  5,254  6,419  7,531  9,744  11,959  11,187  
Tax-exempt transaction 
fee (TSA)a 15 23 63 183 213 222 109 
VAT (Total)  16,975  24,169  29,519  32,075  53,730  48,194  50,441  
  - On imports  9,918  14,366  16,183  17,784  21,502  27,111  28,766  
  - On national production  7,057  9,798  13,336  14,291  32,228  21,083  21,665  
Excise tax (Total)  2,767  3,459  4,241  4,843  6,164  7,690  15,024  
  - On imports  973 1,241  1,325  1,799  2,712  3,719  11,259  
  - On national production  1,794  2,218  2,916  3,044  3,452  3,971  3,765  
Otherb 138 148 878 551 678 1,029  1,240  
a This fee applies to goods exempt from customs duties and charges.  
b This heading comprises: vehicle tax, maritime service tax, miscellaneous service fe es, and export 
taxes on cashew nuts and wood.  
Source:  Direcção Nacional da  Planificação e Orçamento, Contas Gerais  do Estado (CGE). Viewed at: 
http://www.dno.gov.mz . 
3.1.4.1   Applied MFN tariff  
3.21.   Mozambique's 2016 applied MFN tar iff comprises 5,199 eight -digit lines based on the 2007 
Harmonized System (HS). The authorities indicated that work is being undertaken to introduce the 
HS2017 to the tariff book, as of January 2017. All rates are ad valorem  and Mozambique does not 
apply t ariff quotas. The taxable base for the tariff is the c.i.f. customs value. There were very few 
changes to Mozambique's tariff profile over the review period. Mozambique's simple average tariff 
rate is 10% (compared to 10.1% in 2008) with a higher simple av erage tariff on agricultural 
products (of 13.4%) than on non -agricultural products (of 9.5%, WTO definition). International 
tariff peaks affect a substantial (one -third) portion of Mozambique's tariff schedule (Table 3. 6). 
There are three tariff lines (at the HS eight -digit level) where applied rates exceed the bound rate; 
these relate to certain non -agricultural products (Table 3. 7). Mozambique has only bound 19 tariff 
lines at the eight -digit HS level for non -agricultural products (see below).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table 3.6 Structure of MFN tariffs in Mozambique, 2008 and 2016  
 MFN applied  Final Bounda 
2008  2016   Bound tariff lines (% of all tariff lines)  n.a. n.a. 13.6 
Simple average tariff rate  10.1 10.0 97.4 
Agricultural products (WTO definition)  13.5 13.4 100.0  
Non-agricultural products (WTO definition)  9.5 9.5 26.0 
Agriculture, hunting, forestry and fishing (ISIC 1)  12.4 12.4 100.0  
Mining and quarrying (ISIC 2)  3.7 3.7 n.a. 
Manufacturing (ISIC 3)  10.0 10.0 96.2 
Duty-free tariff lines (% of all tariff lines)  2.9 3.6 0.0 
Simple average rate of dutiable lines only  10.4 10.4 97.4 
Tariff quotas (% of all tariff lines)  0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all tariff lines)  0.0 0.0 0.0 
Domestic tariff peaks (% of al l tariff lines)b 0.0 0.0 0.0 
International tariff peaks (% of all tariff lines)c 33.4 33.4 13.2 
Overall standard deviation of applied rates  7.3 7.3 15.3 
Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
n.a. Not applicable.  
a The final bound schedule is based on HS07 nomenclature (WTO CTS database) and consists of 
5,063  tariff lines, of which 686 are bound tariff lines and 1 is a partially bound line (at the 8 -digit 
tariff line level.  
b Domestic tariff peaks are defined as those exceeding thre e times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  The 2008 tariff schedule is based on HS07 nomenclature consi sting of 5,203 tariff lines (at the 
8-digit tariff line level).  The 2016 tariff schedule is based on HS12 nomenclature consisting of 
5,199  tariff lines (at the 8 -digit tariff line level).  
Source:  WTO Secretariat calculations, based on data provided by the authorities of Mozambique; and WTO 
CTS database.  
Table 3.7 Tariff lines where applied tariff rates exceed bound tariff rates, 2016  
HS code  Product description  2016  
applied  tariff  Bound tariff  
84091000  Parts s uitable for use solely or principally with internal 
combustion piston engine for aircraft engines  7.5 5 
84149000  Air or vacuum pumps, air or other gas compressors and 
fans; parts  7.5 5 or unbounda 
84189900  Refrigerators, freezers and other refrigerating or freezing 
equipment, electric or other; parts  7.5 5 
a The bound tariff line consists of two sub -lines (84149010, which is unbound, and 84149090, which is 
bound at 5%). Hence the applied rate of 7.5% is higher than the bound rate of 5%.  
Source:  WTO calcu lations, based on data provided by the Mozambican authorities; and WTO CTS database.  
3.22.   As at the time of Mozambique's previous Review, highest average tariffs by HS chapter 
continue to be applied on basic food products such as meat, fish, fruits, vegetables (and products 
thereof), beverages , and clothing. Certain products (cane sugar; cement; and iron or non -alloy 
steel, and iron or non -alloy steel tubes) are subject to surtaxes (see below) which are not taken 
into account in the figures reported in this sect ion. The coefficient of variation of 0.7 indicates 
some dispersion of tariff rates and hence different levels of protection in the economy. Using ISIC 
(Rev.2), agriculture remains the most heavily protected sector (average tariff of 12.4%), followed 
by man ufacturing (1 0%) and mining (3.7%) (Table 3.8 ). WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table 3.8 Mozambique's applied MFN tariff summary, 2016  
 Number 
of lines  Simple 
average 
(%) Tariff 
range  
(%) CVa Share of 
duty-free 
lines  
(%)b 
Total  5,199  10.0 0-20 0.7 3.6 
HS 01 -24 783 15.2 0-20 0.5 0.8 
HS 25 -97 4,416  9.1 0-20 0.8 4.1 
By WTO category       
WTO agricultural products  721 13.4 0-20 0.6 1.0 
Animals and products thereof  98 17.6 0-20 0.3 1.0 
Dairy products  27 15.2 0-20 0.5 7.4 
Fruit, vegetables  and plants  193 16.6 2.5-20 0.4 0.0 
Coffee, tea, and cocoa and cocoa 
preparations  24 17.2 2.5-20 0.3 0.0 
Cereals and preparations  86 12.6 0-20 0.6 1.2 
Oil seeds, fats, oil and their products  81 9.2 2.5-20 0.8 0.0 
Sugars and confectionary  16 9.1 7.5-20 0.5 0.0 
Beverages, spirits and tobacco  56 17.5 2.5-20 0.3 0.0 
Cotton  5 2.5 2.5-2.5 0.0 0.0 
Other agricultural products, n.e.s.  135 7.2 0-20 1.0 2.2 
WTO non -agricultural products  4,478  9.5 0-20 0.7 4.0 
Fish and fishery products  129 19.4 0-20 0.2 0.8 
Minerals and metals  915 7.2 0-20 0.7 0.3 
Chemicals and photographic supplies  865 5.1 0-20 1.1 10.9 
Wood, pulp, paper and furniture  259 9.9 0-20 0.7 2.3 
Textiles  595 14.5 0-20 0.5 6.1 
Clothing  219 20.0 20-20 0.0 0.0 
Leather, rubber, footwear and travel 
goods  167 11.3 0-20 0.6 1.8 
Non-electric machinery  523 6.0 0-20 0.6 3.4 
Electric machinery  253 9.0 2.5-20 0.6 0.0 
Transport equipment  139 7.7 0-20 0.8 7.2 
Non-agricultural products, n.e.s.  391 12.7 0-20 0.5 2.0 
Petroleum  23 6.0 2.5-7.5 0.2 0.0 
By ISI C sectorc      
ISIC 1 – Agriculture, hunting and fishing  317 12.4 0-20 0.7 0.3 
ISIC 2 – Mining and quarrying  97 3.7 2.5-20 0.9 0.0 
ISIC 3 – Manufacturing  4,784  10.0 0-20 0.7 3.8 
By stage of processing       
First stage of processing  658 10.1 0-20 0.8 0.5 
Semi-processed products  1,705  7.5 0-20 0.9 3.1 
Fully processed products  2,836  11.6 0-20 0.6 4.6 
a Coefficient of variation.  
b Share of duty -free in the total number of tariff lines of the product group.  
c International Standard Industrial Classificat ion (Rev.2). Electricity, gas and water are excluded 
(1 tariff line).  
Note:  The 2015 tariff schedule is based on HS12 nomenclature consisting of 5,199 tariff lines (at the 
8-digit tariff line level).  
Source:  WTO Secretariat calculations, based on data prov ided by the authorities of Mozambique.  
3.23.   The 2016 tariff continues to comprise five rates: zero, 2.5%, 5%, 7.5% and 20%; two 
thirds of lines are assessed at 7.5% or less, and one third at 20% (Chart 3.1).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
- 45 - 
 
  Chart 3.1 Breakdown of applied MFN tariffs, 2016  
(number of tariff lines)             % 
 
Note:  Figures in parentheses denote the share of total lines.  
Source:  WTO Secretariat calculations, based on data provided by the authorities of Mozambique.  
3.24.   As at the time of Mozambique's previous Review, the tariff shows mixed escalation overall: 
it is negative from raw materials to semi -processed products (average protection of 10.1% and 
7.5%, respectively), and then positive from semi -processed to finished products (with an average 
level of protection of 11.6%) (Table 3. 8). A more detailed breakdown by activity reveals that 
positive escalation is evident in various industries including textiles and clothing; wood products; 
paper, printing and publishing; chemicals and plas tics; and metal products. Mixed escalation is 
evident for food, beverages and tobacco; non -metallic mineral products; and other manufacturing 
(Chart 3.2). As pointed out in Mozambique's previous Review, such a tariff structure tends to 
discourage investmen t in processing industries because the heavy taxation of imported inputs adds 
to production costs or reduces the competitiveness of products manufactured in Mozambique. Thus 
the tariff structure may not be conducive to diversification of economic activity through 
manufacturing. It also contributes to investors' arguments in favour of duty and tax concessions, 
including under the Industrial Free Zone (IFZ) and Special Economic Zone (SEZ) regimes.30 
                                                
30 WTO document WT/TPR/S/209/Rev.1, 30 June 2009.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Chart 3.2 Tariff escalation by manufacturing sector (ISIC 2 -digit level), 2016  
% 
0.05.010.015.020.025.0Chart 3.3 Tariff escalation by manufacturing sector (ISIC 2 -digit level), 2016
%
Source:      WTO Secretariat estimates, based on data provided by the authorities of Mozambique.
Food, 
beverages, 
and  
tobacco
Textiles, 
apparel
Wood 
products
Paper, 
printing, and 
publishing
Chemicals, 
plastics
Non-metallic 
mineral 
products
Basic metal 
products
Fabricated 
metal 
products
Other 
manufacturingRaw materials Semi -processed Fully processed
n.a.
n.a.Average applied rate in manufacturing 
(10.0%)
n.a.             Not applicable.
Total 
manufacturing 
 
n.a. Not applicable.  
Source:  WTO Secretariat estimates, based on data provided by the authorities of Mozambique.  
3.1.4.2   Import surtaxes  
3.25.   Import surtaxes continue to be levied on cane sugar; cemen t; and iron or non -alloy steel , 
and iron or non -alloy steel tubes. They affect 10 tariff lines at the HS eight -digit level. Surtaxes 
are imposed by the respective responsible ministries, and rates may be reviewed by these 
ministries and modified through th e issuance of a ministerial diploma. No new products were 
subject to import surtaxes over the review period.  
3.1.4.2.1   Sugar  
3.26.   Raw and refined sugar  are subject to variable import surtaxes in addition to a basic MFN 
applied duty of 7.5%. The two surtaxes are calculate d as the difference between the respective 
sugar reference price and world market prices expressed in c.i.f. value, and are stated as a 
percentage.31 The surcharge computation is based on the average spot prices of the preceding 
delivery contract month as p ublished in the respective sugar futures exchanges. The surcharge is 
published monthly. Sugar reference prices remained unchanged for a long period between 2001 
and 2015. In November 2015, the reference prices for both types of sugar were raised in order t o 
shelter the domestic industry from low value world market imports. For raw sugar, the reference 
price is now US$806/tonne (up from US$385/tonne), and for refined sugar, the reference price is 
now US$932/tonne (up from US$450/tonne). While for most of the  review period the respective 
surtaxes were levied at 0%, they have increased dramatically since 2015, firstly due to a decrease 
in world prices for sugar and thereafter due to the increase in the Mozambican reference prices. 
During 2016, the adjusted surt axes for raw and processed sugar exceeded 100% (Mozambique's 
bound rate for other duties and charges ( Section 3.1.4.3)) for a period of time where world market 
prices were particularly low (Tables 3. 9 and 3. 10). Since 2016, a reduced reference price of 
US$100/tonne has been applied to imports of sugar for industrial use (Ministerial Diploma 
No. 75/2016 of 1  November  2016). Previously sugar imported by domestic industries did not pay 
the surtax.  
                                                
31 Ministerial Diploma No. 56/2001 of 30 March 2001 sets out the mechanism.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table 3.9 Applie d surtax for raw sugar (HS 17.01.11; 17.01.12),  
July 2015 -November 2016  
Date  (1) 
World  raw 
sugar price 
(f.o.b.)  
US$/tonne  (2) 
Transport 
(freight) and 
insurance 
margin  
US$/tonne  (3) 
c.i.f. 
[(1)+(2)]  
US$/tonne  (4) 
Gross surtax  
[Ref. price  
-(3)/(3)]  (5) 
Adjus ted 
surtax  
[(4) x 0.93]  
November 2016  492.20  25.80  518.00  55.60%  51.71%  
October 2016  451.96  25.80  477.76  68.70%  63.89%  
September 2016  434.61  25.80  460.41  75.06%  69.81%  
August 2016  436.02  25.80  461.82  74.53%  69.31%  
July 2016  410.54  25.80  436.34  84.72%  78.79%  
June 2016  359.91  25.80  385.71  108.97%  101.34%  
May 2016  335.57  25.80  361.37  123.04%  114.43%  
April 2016  322.91  25.80  348.71  131.14%  121.96%  
March 2016  … … … … … 
February 2016  326.99  25.80  352.79  128.46%  119.47%  
January 2016  325.49  27.97  353.46  128.03%  119.07%  
December 2015  317.74  30.99  348.73  131.12%  121.95%  
November 2015  285.46  30.99  316.45  154.70%  143.87%  
October 2015  .. .. .. .. .. 
September 2015  .. .. .. .. .. 
August 2015  261.25  31.29  292.54  31.61%  29.39%  
July 2015  267.08  31.10  298.18  29.12%  27.08%  
.. Data not provided.  
Source:  Autoridade Tributária de Moçambique. Viewed at: http://www.at.gov.mz ; and information provided 
by the authorities.  
Table 3.10 Applied surtax for processed sugar (HS  17.01.91; 17.01.99), 
July 2015 -November 2016  
Date  (1) 
World  other 
sugar price 
(f.o.b.)  
US$/tonne  (2) 
Transport  
(freight) and 
insurance 
margin  
US$/tonne  (3) 
c.i.f. 
[(1)+(2)]  
US$/tonne  (4) 
Gross surtax  
[Ref. price  
-(3)/(3)]  (5) 
Adjusted 
surtax  
[(4) x 0.93]  
November 2016  594.97  27.04  622.01  49.84%  46.35%  
October 2016  546.35  27.04  573.39  62.54%  58.16%  
September 2016  532.35  27.04  559.39  66.61%  61.95%  
August 2016  506.75  27.04  533.79  74.60%  69.38%  
July 2016  506.75  27.04  533.79  74.60%  69.38%  
June 2016  466.58  27.04  493.62  88.81%  82.59%  
May 2016  430.69  27.04  457.73  103.61%  96.36%  
April 2016  408.28  27.04  435.32  114.10%  106.11%  
March 2016  .. .. .. .. .. 
February 2016  430.69  27.04  457.73  103.61%  96.36%  
January 2016  403.86  28.90  432.76  115.36%  107.29%  
December  2015 392.88  32.21  425.09  119.25%  110.90%  
November 2015  341.77  32.21  373.98  149.21%  138.77%  
October 2015  .. .. .. .. .. 
September 2015  .. .. .. .. .. 
August 2015  342.65  32.34  374.99  20.00%  18.60%  
July 2015  340.90  32.22  373.12  20.60%  19.16%  
.. Data no t provided.  
Source:  Autoridade Tributária de Moçambique. Viewed at: http://www.at.gov.mz . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.1.4.2.2   Cement  
3.27.   A surtax on imported cement has been in place since 1997 at a rate of 10.5%. Since 2009, 
this has been periodically suspended according to the prevailing mark et situation.32 As at 
November 2016 it was being applied.  
3.1.4.2.3   Iron or non -alloy steel and iron or non -alloy steel tubes  
3.28.   The Mozambican Government continues to impose a surtax on imports of certain iron or 
non-alloy steel products, in place since 1997. As noted  in Mozambique's previous Review, this 
measure was adopted following complaints that these products, imported from Zimbabwe and 
South Africa, were being dumped on the Mozambican market. The surtax is applied to the c.i.f. 
value of imports. In 2016, the sur taxes on iron or non -alloy steel (HS 7210.41.00) and on iron or 
non-alloy steel tubes (HS 7306.30.00; HS 7306.61.00; and HS 7306.69.00) were respectively 
20% and 10.5%. The surtax is applied to imports from all origins.  
3.1.4.3   Bound tariff and other duties and c harges  
3.29.   Mozambique's Uruguay Round concessions on goods are contained in Schedule CXIX. Under 
its Uruguay Round commitments, Mozambique bound tariffs on all agricultural products at a ceiling 
rate of 100%. Bindings on non -agricultural products are very limi ted; only 19 lines at the 
eight-digit level (HS 1996 nomenclature) were bound, at either 5% or 15%.33 In total, only 14.2% 
of Mozambique's tariff lines are bound. "Other duties and charges" on all bound items are bound at 
100%.34  
3.1.4.4   Preferential tariffs  
3.30.   Prefer ential tariffs are in place for SADC members; the transition period for tariff 
liberalization was completed, as scheduled, for all SADC members (except South Africa) by 2012 
and for South Africa by 2015. 99.6% of duties on goods originating from SADC membe rs are now 
at zero. The remaining 0.4% of dutiable lines (22 tariff lines at the HS eight -digit level) have been 
exempt from tariff reductions; these relate to arms and ammunition (and parts and accessories 
thereof) and ivory, tortoise -shell, whalebone and  whalebone hair, horns, antlers, hooves, nails, 
claws and beaks (Table 3.1 1). Tariff liberalization under the SADC –EU EPA will be implemented 
upon entry into force of the agreement ( Section  2).35  
Table 3.11 Mozambique's applied MFN and preferential tariff summary, 2016  
 Applied MFN  SADC  
Simple 
average (%)  Share of duty -
free lines (%)  Simple 
average (%)  Share of duty -
free lines (%)  
Total  10.0 3.6 0.1 99.6 
HS 01 -24 15.2 0.8 0.1 99.7 
HS 25 -97 9.1 4.1 0.1 99.5 
By WTO category      
WTO agriculture  13.4 1.0 0.1 99.7 
Animals and products thereof  17.6 1.0 0 100.0  
Dairy products  15.2 7.4 0 100.0  
Fruit, vegetables and plants  16.6 0 0 100.0  
Coffee, tea, and cocoa and 
cocoa preparations  17.2 0 0 100.0  
Cereals and  preparations  12.6 1.2 0 100.0  
Oil seeds, fats, oil and their 9.2 0 0 100.0  
                                                
32 For example, a temporary suspension of the surtax occurred in 2009 when there was a severe cement 
shortage due to a surge in construction activity, and consequent soaring prices. Cem net online information. 
Viewed at: http://www.cemnet.com/News/story /133331/mozambique -shortage -brings -building -work-to-
halt.html  and Poptel online information. Viewed at : http://www.poptel.org.uk/mozambique -
news/newsletter/aim370.html#story8 . 
33 The 19 lines cover parts of nuclear reactors, boilers, machinery, and mechani cal appliances, and are 
all included in HS Chapter 84.  
34 WTO document WT/TPR/S/209/Rev.1, 30 June 2009.  
35 The interim EU –SADC EPA signed in June 2009 was never ratified; hence, there was no liberalization 
by Mozambique under the interim EPA.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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   Applied MFN  SADC  
Simple 
average (%)  Share of duty -
free lines (%)  Simple 
average (%)  Share of duty -
free lines (%)  
products  
Sugars and confectionary  9.1 0 0 100.0  
Beverages, spirits and tobacco  17.5 0 0 100.0  
Cotton  2.5 0 0 100.0  
Other agricultural products, 
n.e.s.  7.2 2.2 0.3 98.5 
WTO no n-agricultural 
products  9.5 4.0 0.1 99.6 
Fish and fishery products  19.4 0.8 0 100.0  
Minerals and metals  7.2 0.3 0 100.0  
Chemicals and photographic 
supplies  5.1 10.9 0 100.0  
Wood, pulp, paper and 
furniture  9.9 2.3 0 100.0  
Textiles  14.5 6.1 0 100.0  
Clothing 20.0 0 0 100.0  
Leather, rubber, footwear and 
travel goods  11.3 1.8 0 100.0  
Non-electric machinery  6.0 3.4 0 100.0  
Electric machinery  9.0 0 0 100.0  
Transport equipment  7.7 7.2 0 100.0  
Non-agricultural products, 
n.e.s.  12.8 2.0 1.0 94.9 
Petroleum  6.0 0 0 100.0  
Note:  The 2015 tariff schedule is based on HS12 nomenclature consisting of 5,199 tariff lines (at the 
8-digit tariff line level).  
Source:  WTO Secretariat calculations, based on data provided by the Mozambican authorities.  
3.1.4.5   Customs duty exemp tions  
3.31.   Customs duty exemptions or reductions (excluding reductions under preferential regimes) 
are contained in Table V of the General Rules for Customs Clearance of Goods (Decree 
No. 34/2009) (Table 3.1 2). These rules replace those in effect since 2002; ho wever, there have 
only been a few changes, affecting imports destined for specific industrial uses and foreign bills 
and coins.36 There have no changes to the rules since 2009.  
Table 3.12 Goods benefiting from exemption or reduction of customs duties under the 
General Rules for Customs Clearance of Goods  
Item  
1. Commodities for the official use of diplomatic missions, consulates, international organizations and their 
agencies accredited in Mozambique, under the  specific legislation on the subject  
2. Articles intended for diplomatic or consular officials and international officials, in terms of specific legislation 
on the subject  
3. Samples, individually or in collections, properly labelled, that have the chara cteristics peculiar thereto, 
without commercial value  
4. Awards won in tenders or spo rt competitions  
5. Baggage, as defined in Decree No. 34/2009 of 6 July 2009  
6. Articles of estates that may be imported under the baggage regime, as well as coffins, fu neral wreaths and 
emblems that accompany them  
7. Items for public museum showcases  
8. Objects considered as works of art or with historical value by the Ministry which oversees the area of 
culture  
9. Gifts to war prisoners, under Article 3 of the Geneva  Convention, signed on 22 July 1929, concerning the 
treatment of war prisoners  
10. Educational or scientific movies, intended for ministries and recognized institutions  
11. War and quartering material, and uniforms, for the official use of the defence an d security forces  
12. Commodities for which exemptions are provided for in the treaties and agreements signed or accepted by 
the Government of the Republic of Mozambique  
                                                
36 An exemption  for goods destined for specific industrial uses as regulated by separate legislation has 
been removed. A new exemption was introduced for foreign bills and coins when imported by previously 
authorized bank institutions. Additionally, an exemption for scie ntific and educational films, which was 
previously destined just for interested ministries, has also been extended to recognized institutions.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Item  
13. Products brought in small quantities from neighbouring countries by the border p opulation, for personal or 
family use  
14. Scientific and educational material or laboratory material for educational and scientific -technical research, 
as confirmed by the relevant sector  
15. Foreign notes and coins, when imported by banking institutions  duly authorized for that purpose  
16. Notes and coins in use in the country, when imported by the Bank of Mozambique  
17. Traffic documents imported by airlines, railways, shipping lines, such as the waybill, shipping documents, 
tickets, and baggage tags  
18. Working papers, reports, bids, plans, and designs  
19. Catalogues on paper or on a magnetic media  
20. Foreign notes and coins when imported by banking institutions duly authorized for that purpose  
Note:  The authorities competent to grant this regime  are: Minister of Finance (numbers 8, 9, 11, 14, 15 
and 16); Tax Authority Chairman (numbers 2, 4, 12, 14 and 20); General Director of Customs 
(numbers 1 and 7); Regional Directors (numbers 3 and 10) and heads of customs offices (numbers 
5, 13, 17, 18 and 19). 
Source:  Decree No. 34/2009 of 6 July 2009. Viewed at: http://www.at.gov.mz/por/Media/Files/Decreto -n1-
34-2009-de-6-de-Julho. 
3.32.   Customs duty exemptions and reductions are also available under the 2009 Code of Fiscal 
Benefits. Incentives are either of a g enerally applicable or industry -specific nature; they are only 
granted when the imported goods are not produced in Mozambique or if the domestically -produced 
goods are not adequate for the investment project.37 (Table 3.1 3 and Section  3.3.1).  
3.33.   A customs serv ice fee of MT 2,500 per importation is charged on all imports that are exempt 
from customs duties.38 
Table 3.13 Customs duty exemptions contained in the Code of Fiscal Benefits, 2016  
Activity  Items subject to c ustoms duty exemptions  
General  
General  Goods classified as "class K" (capital goods) in Mozambique's tariff schedule as well as 
their spare and accessory parts.  
Specific  
Creation of basic 
infrastructure  Goods classified as "class K" in Mozambique's ta riff schedule as well as their spare and 
accessory parts.  
Rural commerce and 
industry  Goods classified as "class K" in Mozambique's tariff schedule as well as their spare and 
accessory parts. Additionally: freezers; scales; weights; cash registers; oil an d fuel 
meters; and counters.  
Manufacturing and 
assembly  Manufacturing industries: exemption for import of raw materials to be used in 
industrial manufacturing processes.  
Assembly industries: exemption for import of materials to be used in the production 
process.  
Hostelry and tourism  Goods classified as "class K" in Mozambique's tariff schedule as well as their spare and 
accessory parts. Additionally, goods for construction and outfitting, namely: 
construction materials excluding cement, blocks; tiles, pai nt and varnish; rugs and 
carpets; sanitary equipment; furniture; textiles; elevators; air conditioners; kitchen 
equipment; refrigeration equipment; tableware and restaurant and bar articles; 
communication equipment; safes; computer and sound equipment; tel evisions; 
recreational watercraft; yachts and related equipment; water sports security 
equipment; aircraft; aeroplanes; helicopters; hand -gliders; gliders; flight simulators 
and related equipment; and tourist activity security equipment.  
Science and 
techn ology parks  Scientific, teaching and laboratory material and equipment.  
Large dimension 
projects  Construction materials, machinery and equipment and accompanying spare and 
accessory parts as well as other goods used in the carrying out of the activity.  
Rapid Development 
Zones  Goods classified as "class K" in Mozambique's tariff schedule as well as their spare and 
accessory parts.  
                                                
37 Law No. 4/2009 of 12 January 2009 (The Code of Fiscal Benefits), Article 6.  
38 Law No. 6/2009 of 10 March 2009 a nd Decree No. 34/2009 (Article 11).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Activity  Items subject to c ustoms duty exemptions  
Industrial Free Zones 
(IFZs)  For operators of IFZs: construction materials, machinery, equipment, accompanying 
spare and acces sory parts and other goods used in the carrying out of the IFZ activity.  
For IFZ enterprises: goods and merchandise to be used in the implementation of 
authorized projects.  
Special Economic 
Zones (SEZs)  For SEZ developers and enterprises: construction mat erials, machinery, equipment, 
accompanying spare and accessory parts and other goods used in carrying out the 
licensed activity.  
Source:  Law No. 4/2009 of 12 January 2009, Code of Fiscal Benefits. Viewed at: 
http://www.tipmoz.com/library/resources/documents/codeoffiscalbenefits.pdf . 
3.1.4.6   Value Added Tax (VAT)  
3.34.   The VAT Code (Código do Imposto sobre o Valor Acrescentado (Law No. 32/2007 of 
31 December 2007)) and VAT regulat ions (Decree No. 7/2008 of 16 April 2008) provide the 
legislative and regulatory framework for the imposition of VAT. The VAT Code was amended in 
2012 (by Law No. 3/2012 of 23 January 2012).39 The c hanges introduced were to exempt from 
VAT: insecticides; ra w materials for animal feed production (including corn and soybeans)40; and 
the acquisition of goods and services for the drilling, survey and construction of infrastructure for 
mining and oil activities at the prospecting and exploration phase. Additionall y, changes were 
made to the time  frame within which VAT can be deducted.  
3.35.   VAT continues to be levied at a rate of 17% on the supply of goods and services and on the 
c.i.f. value of imported goods plus applicable customs duties. Exemptions and zero -rating ap ply to 
certain items (Table 3.1 4). In a few cases (certain public works, power and air transport services), 
VAT is not charged on the full price of the good or service, thus leading to a lower effective rate.41 
3.36.   As part of Mozambique's fiscal incentives regi me under the 2009 Code of Fiscal Benefits, 
various imported goods are VAT -exempt. These are largely the items that are also subject to 
customs duty exemptions ( Section s 3.1.4.5 and 3.3.1). Sugar is VAT -exempt throughout its value 
chain . There was a proposa l in 2015 to extend a VAT exemption for oil and soap industries until 31 
December 201942; however, information was not available as to whether this was approved.  
Table 3.14 VAT rates, 2016  
 Rate Items  
General rate 17% All items/goods with the exception of those below  
Zero rate  0% (a) The final importation of goods that would qualify for an objective exemption, or 
would benefit from the exemption of customs duties (i.e. goods listed in Annex I of 
the VAT Code);   
  (b) the importation of goods in transit and the temporary importation or drawback of 
goods that are exempt from custom import duties;  
  (c) exports;  
  (d) provision of services that are directly related to the transit, export, or import of 
goods exe mpt from tax under the temporary import, drawback or transit regimes.  
Exemption  n.a. (a) Certain goods and services listed in the VAT Code: bicycles, bread, condoms, 
corn, corn flour, fresh and refrigerated tomatoes, garlic, jet fuel, lamp oil, onions, 
powdered milk for children, rice, flour, salt, smoked fish and wheat;  
  (b) supply of goods and services in the areas of health; education; and in the 
                                                
39 Law No. 3/2012 altered the following articles of Law No. 32/2007: 9; 12; 14; 15; 18; 19; 21; and 25.  
40 As noted by an external source, the VAT exemption for imports of raw materials for animal feed 
production is aimed  at reducing living costs by reducing the price of chicken (by lowering the costs of chicken 
production). However, there could be negative consequences for efficiency in national production. USAID 
Speed Program, "VAT in the Agricultural Sector". Viewed at:  http://www.speed -program.com/wp -
content/uploads/2012/09/SPEED -Reports -2012-002IVAnoSectordaAgricultura -Dec2011_F inalReport.pdf . 
41 As noted by Price Waterhouse Coopers, these effective rates are as follows: 40% of the taxable basis 
for public works for the construction or rehabilitation of roads, bridges and water or power infrastructures for 
supplies to rural areas ; 62% of the taxable basis for power (where the price is established by the authorities); 
and 85% of the taxable basis for services whose price is determined based on aeronautic excises. PWC (2014), 
Overview of VAT in Africa  – 2014. Viewed at: http://www.pwc.co.za/en/assets/pdf/overview -of-vat-in-africa -
2014.pdf  
42 Government of Mozambique online information. Viewed at: 
http://www.portaldogoverno.gov.mz/por/content/download /5168/37074/version/3/file/COMUNICADO+DA+41
%C2%AASOCM -2015.pdf . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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   Rate Items  
agricultural, forestry, livestock and fishing industries (as stipulated);  
  (c) supply of goods and serv ices related to social assistance undertaken by public or 
non-profit bodies, whose objectives are of a social, cultural or artistic nature;  
  (d) supply of goods and services for the collective interest of members of non -profit 
bodies, the purposes of whi ch are of a social, political, associative, religious, 
philanthropic, recreational, sporting, cultural or civic nature (instead, a fixed fee is 
levied, as set out in the respective statutes);  
  (e) banking and financial transactions;  
  (f) leasing of pro perty for trade and manufacturing purposes and leasing of office 
premises;  
  (g) insurance and reinsurance transactions as well as related services performed by 
insurance brokers and other insurance agents;  
  (h) transactions subject to Sisa (property tr ansfer taxes).  
Source:  USA International Business Publications, "Mozambique Taxation Laws and Regulations Handbook, 
Volume 1 Strategic Information and Basic Laws". Viewed at: 
https://books.google.ch/books?id=YeV8AwAAQBAJ&printsec=frontcover#v=onepage&q&f=false . 
3.37.   The IMF has recommended that Mozambique review and rationalize its extensive list of 
exempt and zero -rated items, since these have an unclear im pact on the poor and have the effect 
of shrinking the tax base. Moreover, it notes that VAT efficiency is well below the SADC average.43 
3.1.4.7   Excise taxes  
3.38.   Mozambique continues to levy excise taxes on a range of products. The governing 
legislation is Law No. 17/2 009, as amended by Law No. 05/2012  of 23 January 2012 and 
Law No. 2/2013 of 7 January 2013. The 2012 Act extends the list of excise tax exemptions to 
include raw materials and goods (either imported or locally produced) which are intended for use 
by domest ic industries or are incorporated into goods produced by them. It also establishes an 
excise tax rate of 10% for beers of roots and tubers. The 2013 Act adjusted VAT rates on wine, 
cigarettes and spirits.  
3.39.   Excise tax rates range from 5% to 75% (Table 3.1 5). Excise taxes are levied on the c.i.f. 
value of the good, plus applicable customs duties (but not including VAT). A special inspection 
regime , as set out in Ministerial Diploma No. 59/2016 of 14 September 2016 , applies to alcoholic 
beverages and processed  tobacco, whereby a seal provides proof of the tax payment. The measure 
was introduced to address contraband concerns. Associated fees (per 1,000 seals) are higher for 
imported than domestically produced goods. The rates are: tobacco (domestic production : €7.54 
and imports : €17.22); Cigars (domestic production: no fee and imports : €23.13); wine (domestic 
production : €12.25 and imports : €27.07); spirits (domestic production: €15.30 and imports : 
€29.68); and beer and ready -to-drink drinks (RTDs).  
3.40.   Excise tax e xemptions apply to small quantities of imported tobacco products and alcoholic 
beverages; manufactured tobacco intended for export; and, as above -mentioned, imported raw 
materials and goods for use by domestic industries. Chibuku brand beer made of sorghum  and 
corn (HS 2206.00.10) is exempt from the 40% excise tax while other beer (HS 2206.00.90) is not; 
at the time of the last Review, it was explained that the reason that the exemption applies is 
because Chibuku is considered to be an energy drink and has a lower alcoholic content than other 
beer.44 
                                                
43 IMF Country Report No. 16/10 (2016). Viewed at: 
https://www.imf.org/external/pubs/ft/scr/2016/cr1610.pdf . 
44 WTO Secre tariat , WT/TPR/S/209/Rev.1, 30 June 2009.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table 3.15 Excise tax rates, 2016  
Heading No.  
(Number of 
tariff lines at 
HS 6 - 
and/or 8 -
digit level)  Description of the goods  Duty rate 
(%) 
22.03 (1) Beer made fro m malt  40 
22.04 (3) Wine of fresh grapes, including fortified wines; grape must other than that 
of heading 20.09  55 
22.05 (2) Vermouth and other wine of fresh grapes flavoured with plants or aromatic 
substances  55 
22.06 (1) Other fermented beverages (fo r example, cider, perry, mead); mixtures of 
fermented beverages and non -alcoholic beverages, not elsewhere specified 
or included  40 
22.07 (3) Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or 
higher; ethyl alcohol and other spiri ts, denatured, of any strength  40-65 
22.08 (9) Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol.; spirits, liqueurs and other spirituous beverages  55-75 
23.09 (1) Preparations of a kind used in animal feeding  30 
24.02 (6) Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco 
substitutes  75 
24.03 (3) Other manufactured tobacco and manufactured tobacco substitutes; 
"homogenized" or "reconstituted" tobacco; tobacco extracts and essences  75 
3303 (1) Perfumes  30 
33.04 (5) Beauty or make -up preparations and preparations for the care of the skin 
(other than medicaments), including sunscreen or sun tan preparations; 
manicure or pedicure preparations  30 
33.05 (4) Preparations for use on the hair  30 
33.07 (4) Pre-shave, shaving or after -shave preparations, personal deodorants, bath 
preparations, depilatories and other perfumery, cosmetic or toilet 
preparations, not elsewhere specified or included  30 
43.03 (3) Articles of apparel, clothing accessories and other a rticles of furskin  30 
71.01 (3) Pearls, natural or cultured, whether or not worked or graded but not strung, 
mounted or set; pearls, natural or cultured, temporarily strung for 
convenience of transport  50 
71.02 (3) Diamonds, worked or not, not mounted or  set 50 
71.04 (2) Synthetic or reconstructed precious or semi -precious stones, whether or not 
worked or graded but not strung, mounted or set; ungraded synthetic or 
reconstructed precious or semi -precious stones, temporarily strung for 
convenience of tran sport 50 
71.08 (4) Gold (including gold plated with platinum) unwrought or in semi -
manufactured forms, or in powder form  50 
71.10 (9) Platinum, unwrought or in semi -manufactured forms, or in powder form  50 
71.13 (3) Articles of jewellery and parts there of, of precious metal or of metal clad 
with precious metal  50 
71.14 (3) Articles of goldsmiths' or silversmiths' wares and parts thereof, of precious 
metal or of metal clad with precious metal  50 
71.15 (1) Other articles of precious metal or of metal cla d with precious metal  50 
71.16 (2) Articles of natural or cultured pearls, precious or semi -precious stones 
(natural, synthetic or reconstructed)  50 
71.17 (3) Imitation jewellery  15 
71.18 (1) Coins  15 
87.02 (3) Motor vehicles for the transport of 10 or  more persons, including the driver  35 
87.03 (12) Motor cars and other motor vehicles principally designed for the transport 
of persons (other than those of heading 87.02), including station wagons 
and racing cars  5-40 
87.04 (5) Motor vehicles for the tr ansport of goods  30 
87.11 (4) Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, 
with or without side -cars; side -cars 15-35 
87.16 (1) Trailers and semi -trailers; other vehicles, not mechanically propelled; parts 
thereof  15 
88.01 (4) Balloons and dirigibles; gliders, hang gliders and other non -powered aircraft  35 
89.03 (3) Cruise ships, excursion boats, ferry -boats, cargo ships, barges and similar 
vessels for the transport of persons or goods  35 
93.03 (5) Other firearms and simila r devices which operate by the firing of an 
explosive charge  30 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Heading No.  
(Number of 
tariff lines at 
HS 6 - 
and/or 8 -
digit level)  Description of the goods  Duty rate 
(%) 
97.01 (5) Paintings, drawings and pastels, executed entirely by hand, other than 
drawings of heading 49.06 and other than hand -painted or hand -decorated 
manufactured articles; collages and si milar decorative plaques  30 
Source:  Law No. 17/2009 of 10 September  2009, amended by Law No. 02/2013 of 7 January 2013. Viewed 
at: http://www.at.gov.mz/por/Media/Files/Lei -n1-17-2009-de-10-de Setembro2  and 
http://www.at.gov.mz/por/Media/Files/Lei -n1-2-2013-de-7-de-Janeiro2 , respectively.  
3.1.5   Import prohibitions, quantitative restrictions on imports, and other import 
restrictions  
3.1.5.1   Import prohibitions  
3.41.   Import prohibitions are largely listed in Table I of the 2009 General Rules for Customs 
Clearance of Goods, Decre e No. 34/2009 of 6 July 2009. This list is replicated in Table 3.1 6 below. 
The 2009 rules replace those previously in effect since 2002.45 However, there have been no 
substantial changes to the items subject to prohibition.  
Table 3.16 Import prohibitions, 2016  
Prohibited goods  
Merchandise with fabrication labels of false commerce or origin, books and works of art when they are 
counterfeit editionsa 
Objects, photographs, albums, recordings of sound or images an d film of a pornographic nature or other 
materials that were judged offensive to public morals and dignity  
Imitations of forms of postage used in the country  
Medication and food products harmful to public health  
Food products that are harmful to public health that cannot be used for other purposes  
Distilled alcoholic drinks that contain essences or chemical products recognized as harmful  
Hallucinatory and psychotropic substances except when imported for hospital use  
Other merchandise whose prohibition  of importation is established by special legislation  
a As clarified by Mozambique's previous Review, Mozambique prohibits goods bearing false indications 
of origin because this would undermine its RTAs (it does not relate to origin in the customs sense 
and has no bearing on the goods' tariff treatment) (WTO document WT/TPR/M/209/Add.1, 
8 July 2009).  
Source:  Decree No. 34/2009 of 6 July 2009. Viewed at: 
https://www.mc net.co.mz/Files/Legislacao/Decretos/Decreto_34_2009.aspx . 
3.42.   Left-hand drive vehicles used for commercial purposes are banned.46 Animals and their 
by-products, remains and fodder listed on the OIE diseases list up to six months after the latest 
outbreak are b anned under the Animal Health Regulations (Decree No. 26/2009) . Import 
prohibitions relat ing to vegetables and vegetable products are contained in Annex 1 of Decree 
No. 5/2009. Mozambique also applies import prohibitions under the multilateral environmenta l 
agreements (MEAs) to which it is a party.  
3.1.5.2   Quantitative restrictions on imports  
3.43.   A chicken import quota mechanism was introduced in 2009 in order to protect the national 
poultry industry from cheap imports. There is no legal basis for this mechanism. Accor ding to the 
authorities, the quota is set annually in March during a working group meeting comprising 
representatives from the Government, the Association of Poultry Farmers (AMA) and importers. 
The quota is based on the deficit between domestic production  and demand. A second meeting of 
the working group is held in August to determine whether there is a need to adjust the quota. The 
Ministry of Industry and Commerce (MIC) allocates the quota each semester to a group of large 
                                                
45 The 2002  General Rules for Customs Clearance are contained in Decree No. 30, 2002.  
46 Intertek online information. Viewed at:  
http://www.intertek.com/uploadedFiles/Intertek/Divisions/Oil_Chemical_and_Agri/Media/pdfs/Mozambique%2
0Importer%20Guidelines.pdf . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  importers (currently 16 compani es) based on their historical performance and distribution 
capacity. The MIC informs the Ministry of Agriculture  and Food Safety  on quotas allocated, with the 
latter providing import licences. There is coordination with Customs to ensure that import quotas  
are not exceeded. Quota fill rates have ranged from nearly 4 5% to 100% over the period 
2012-2016.  
Table 3.17 Chicken import quota volumes and fill rates , 2012 -2016  
Year Quota  
(tonnes)  Imports  
(tonnes)  Fill ra te 
(%) 
2012 5,222  5,222  100 
2013 9,141  9,141  100 
2014 9,000  9,000  100 
2015 7,000  3,138  44.8 
2016 5,000  3,043  60.9 
Source:  Information provided by the authorities.  
3.1.5.3   Other import restrictions and licensing requirements  
3.44.   Other import restrictions, includi ng licensing requirements, are largely listed in Table III to 
the 2009 General Rules for Customs Clearance of Goods (Table 3.1 8). Mozambique has not 
notified its licensing regime to the WTO.47 
Table 3.18 Import  restrictions, 2016  
Goods  Restrictions  
Animals, spoils and animal products  Authorization of the veterinary 
services  
Plants, roots, tubers, bulbs, stems, branches, buds, eyes on seed 
tubers, sprouts, fruits and seeds, honey and other agricultural 
products , as well as their respective packaging  Phytosanitary inspection prior to 
customs clearance  
Playing cards  Must be sealed in accordance with 
the legislation in force  
Drugs, except those carried in luggage for personal use  Authorization of health or veteri nary 
services, as appropriate  
Firearms, explosives and fireworks, physical or chemical gunpowder  Authorization by the Ministry of 
Interior  
Goods whose import is conditioned by this or other legislation (i.e. 
goods which are not specifically listed in Tab le III)  Subject to authorization according to 
the law  
Goods which are subject to tax exemptions or where special tax 
treatment is conditional upon their use and that may have other 
applications, according to the terms of legislation in force  Authorization  of the competent 
institution  
Goods imported from countries with which there are trade agreements 
or treaties that provide for special taxation  Authorization of the competent 
institution  
Seals and revenue or postal stamps, in use in the country  May only be imported by the State  
Poisonous or toxic substances and narcotic drugs, or their 
preparations  Authorization from health or 
veterinary services  
Second -hand clothes  Imports must be accompanied by a 
fumigation certificate  
Gold, silver and platinum, in c oins, bars or ingots  May only be imported by the Central 
Bank of Mozambique, in accordance 
with the legislation in force  
Foreign currency notes and coins  May only be imported by authorized 
banking institutions  
National currency notes and coins in use in  the country  May only be imported by the Central 
Bank of Mozambique  
Goods that will undergo any beneficiation, upgrading or repair in the 
country, and intended for re -exportation  Authorization of the Director -General 
of Customs  
                                                
47 At the time of Mozambique's last Review, it was explained that Mo zambique had prepared a draft 
notification in 2003, but it was sent back for further translation and clarification. The process was not taken 
further due to lack of capacity. At this time, it was also reported that a questionnaire on Import Licensing 
Proce dures had been  completed and responses would  be circulated shortly. WTO document 
WT/TPR/M/209/Add.1, 8  July 2009.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Goods  Restrictions  
Used pneumatic tires, carc asses for retreading and other retreaded or 
used pneumatic tires, in tariff headings 401210, 40121100, 
40121200, 401220, 40121300, 40121900, 40122010, 40122090, 
40129010 and 40129090  Authorization by the Ministry of 
Transport and Communications  
Source:  Decree No. 34/2009 of 6 July 2009. Viewed at: 
https://www.mcnet.co.mz/Files/Legislacao/Decretos/Decreto_34_2009.aspx . 
3.45.   At the time of Mozambique's previous Review, prior a pproval was required for imports of 
products containing GMOs.48 New legislation on GMOs entered into force in 2014 (Section  3.1.8), 
however, information was not available on its implications for trade in these products. Import 
authorizations are required fo r each consignment of medicinal products and pesticides 
(Section  3.1.1) and the import of live animals for aquaculture is subject to the approval of the 
Ministry of Fisheries.49 Raw tobacco may only be imported by producers of tobacco products.  
3.1.6   Contingency  measures  
3.46.   Mozambique has no legislation in place relating to anti -dumping, countervailing and 
safeguard measures. It notified the WTO in 2010 that it has not established an authority 
competent to initiate and conduct anti -dumping and subsidies investigatio ns and that it does not 
anticipate taking any anti -dumping or countervailing actions in the foreseeable future.50  
3.47.   Safeguard provisions are contained in the SADC Trade Protocol to protect infant industries 
(Article 21)51 and also in the EU –SADC Economic Part nership Agreement (Articles 34 to 38).52  
3.1.7   Standards and other technical requirements  
3.48.   The Instituto Nacional de Normalização e Qualidade (INNOQ) remains the administrative 
authority charged with standard setting, metrology and conformity assessment. The legi slation 
governing its establishment and operation is Decree No . 2/1993 of 24 March 1993, as amended by 
Decree No. 74/2013 of 31 December 2013.53 The INNOQ falls under the supervision of the MIC 
and it is the WTO enquiry point for TBT -related issues. No spec ific trade concerns have been raised 
about Mozambique's TBT measures in the WTO TBT Committee. The INNOQ notified the ISO/IEC 
Secretariat of its acceptance of the Code of Good Practice annexed to the WTO TBT Agreement.54 
3.49.   Provisions on regional cooperation i n the area of standards and technical regulations are 
contained in Article 17 of the SADC Trade Protocol and the Trade Protocol's 2008 Annex on 
Technical Barriers to Trade.55 Under Article 17 of the Trade Protocol, SADC member States agreed 
to use relevant international standards as a basis for standards -related measures, except where 
they are inappropriate. They also agreed, to the greatest possible extent, to make their standards -
related measures compatible, so as to facilitate the trade of goods and servi ces within the 
Community.56 The objective of the Annex on Technical Barriers to Trade is to establish a common 
technical regulation framework supported by regional TBT cooperation structures, so as to identify, 
prevent and eliminate unnecessary TBTs amongst  member States and their other trading partners. 
This is to be achieved through harmonized standards, technical regulations and conformity 
assessment procedures. The Annex contains various provisions on requirements member States 
must follow in developing and implementing national standards, technical regulations and 
conformity assessment procedures. It also establishes seven regional TBT cooperation structures 
                                                
48 Decree No. 6/2007 of 25 April 2007.  
49 Decree No. 25/2001.  
50 WTO documents G/SCM/N/202/MOZ, 23 April 2010 and G/ADP/N/193/MOZ, 1 July 2010.  
51 The SADC Protocol on Trade was viewed at: 
http://www.sadc.int/files/4613/5292/8370/Protocol_on_Trade1996.pdf . 
52 The EU -SADC Economic Partnership Agreement was viewed at: 
http://trade.ec.europa.eu/doclib/docs/2015/october/tradoc_153915.pdf . 
53 Decree No. 2/93 of 24 March 1993.  
54 Notified to the WTO by the ISO Secretariat in WTO document G/TBT/CS/N/69 , 8 July 1997.  
55 SADC Protocol on Trade. Viewed at: http://www.sadc.int/fil es/4613/5292/8370/  
Protocol_on_Trade1996.pdf , and TBT Annex to the SADC Protocol on Trade. Viewed at: 
http://www.sadc.int/files/3013/5817/6379/SADC_Techn ical_Barriers_to_Trade__ -_ANNEX.pdf . 
56 Article 17 also has provisions on accepting other member States' technical regulations as equivalent 
and promotion of inter -state compatibility of specific standards and conformity assessment procedures.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  to further the objectives of the Annex.57 Of these, the SADC Technical Regulation Liaison 
Committe e, inter alia , provides a forum for identifying common technical regulations to be 
implemented in the region. The authorities reported that, as at November 2016, no technical 
regulations had been harmonized at the SADC level. The SADC Cooperation in Standa rdization 
promotes the coordination of standardization activities with a view to harmonizing standards in the 
region. Up -to-date information was not available regarding the number of standards that have 
been harmonized at the regional level.58  
3.50.   Over the rev iew period, a Metrology Decree Law (Decree Law No. 2/2010) and a 
Standardization and Conformity Assessment Regulation (Decree No. 59/2009, as amended by 
Decree No. 19/2010) entered into force. These have both been notified to the WTO.59 The 
Standardization and Conformity Assessment Regulation sets out the legal framework for technical 
regulations as well as standardization and conformity assessment in Mozambique.  
3.51.   In the context of this Review, the authorities indicated that Mozambique has not entered 
into an y mutual recognition agreements with trading partners relating to technical regulations and 
conformity assessment procedures. However, protocols or MoUs have been signed between the 
INNOQ and ASTM International (which allows the INNOQ to receive their stan dards free of charge), 
the Angolan Institute of Standardization and Quality (IANORQ), and the Portuguese Quality 
Institute (IPQ) respectively. Protocols/MOUs with IANORQ and IPQ cover cooperation in various 
areas.  
3.1.7.1   Standards  
3.52.   As noted in Mozambique's previou s Review, demand s for voluntary standard s typically 
originate in the private sector, via the Confederation of Economic Associations (Confederação das 
Associações Económicas, CTA), and are communicated to the INNOQ. The INNOQ has a three -year 
strategic plan  for standard setting, which it develops in consultation with stakeholders. Proposed 
standards are considered by one of the INNOQ's five sectoral technical committees.60 According to 
the authorities, most Mozambican standards are based on international stan dards (ISO, IEC and 
Codex Alimentarius). They are developed in accordance with  international norms described in 
INNOQ's Directive 1 of 1998. The Directive recommends 60 days for public comments on the draft 
standard before its approval as a Mozambican stan dard. Regional standards from the SADC, the 
ARSO, the EAC and the EU may also constitute a source for the development of Mozambican 
standards. After approval as voluntary standards, the INNOQ gazettes them annually or whenever 
necessary. As at 2015, there were 915 approved Mozambican standards.  
3.1.7.2   Technical regulations  
3.53.   As set out in Chapter IV of Decree No. 57/2009, the development of technical regulations is 
the responsibility of the competent authorities (ministries or state institutions) in areas where the 
product or service process may pose risks to the health and safety of the consumer or the 
environment. Technical regulations should be based on national standards. The Decree specifically 
requires all technical regulations to be transmitted to the INNOQ, s o as to be notified to the WTO 
prior to their approval, with a period of 60 days for comments from interested parties. As indicated 
by the authorities, the development and approval of standards follows a seven -step process: 
(1) technical regulations are pr oposed; (2) the technical board reviews the proposal; (3) the 
proposal is submitted to stakeholders (ministries, private sector and WTO Members through the 
WTO Secretariat) for public consultation with a 60 -day period for responses; (4) harmonization of 
comments from stakeholders; (5) the technical board approves the proposal; (6) the proposal is 
                                                
57 These are the: (a) SADC Technical Regulations Liaison Committee (SADCTRLC); (b) SADC TBT 
Stakeholders Committee (SADCTBTSC); (c) SADC Cooperation in Accreditation (SADCA); (d) SADC 
Cooperation in Legal Metrology (SADCMEL); (e) SADC Cooperation in Measurement Traceab ility (SADCMET); 
(f) SADC Cooperation in Standardization (SADCSTAN); and (g) SADC SQAM Expert Group (SQAMEG).  
58 As reported in SADC's Annual Report (2011 -12), 94 standards had been harmonized at the regional 
level. Viewed at: sadc.int/files/1613/7243/4333/ SADC_ES_Report_2011 -2012_web.pdf . 
59 WTO documents G/TBT/N/MOZ/4, 19 October 2012, and G/TBT/N/MOZ/5, 19 October 2012.  
60 These committees are: CTNS aap (food, health, agro -industry, fisheries, chemical products and 
environment); CTNS eec (electrotechnical e ngineering, electronics and communication); CTNS gaq (quality 
management, environmental management, safety and basic standards); CTNS cdm (civil engineering, technical 
design, wood and forests); and CTNS mct (mechanical engineering, fuel, boilers and press urised containers 
and transport).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  approved at the levels of the advisory council and then the Council of Ministers; and 
(7) publication in the Government  Gazette (Boletim da República). The authori ties indicated that 
technical regulations no longer in use are eliminated by the replacement with new ones. The new 
regulation states which regulation it replaces or, if applicable, the specific chapter/clause that is no 
longer valid. At least 11 technical  regulations have been replaced since 2009.  
3.54.   Information was not available regarding the number of technical regulations in force. 
Mozambique has notified five technical regulations to the WTO Secretariat (Table 3.1 9). It has also 
notified its 2003 Quality Policy and Implementation Strategy and its 2003 Industrial Licensing 
Regulation.61 
Table 3.19 Technical regulations notified to the WTO, 2009 -2016  
Product  Area  WTO document 
reference  Document 
distribution 
date Final date for 
comments  Proposed 
date of entry 
into force  
Pre-packaged 
products  Labelling; 
metrology  G/TBT/N/MOZ/1  23.04.2012  18.06.2012  07.2012  
Pre-packaged 
products  Labelling  G/TBT/N/MOZ/6  29.05.2013  None 27.06.2013  
Cement  Safety  G/TBT/N/MOZ/7  29.05.2 013 None None 
Weights  Metrology  G/TBT/N/MOZ/8  30.08.2013  None 23.09.2013  
Non-automatic 
weighing instruments  Metrology  G/TBT/N/MOZ/9  28.02.2013  15.03.2014  15.04.2014  
Source:  WTO Documents Online facility.  
3.1.7.3   Conformity assessment, testing and inspection  
3.55.   Conformity assessment procedures and principles are set out in Chapter V of Decree 
No. 57/2009. This specifies that conformity assessment activities should be non -discriminatory, 
transparent, not constitute unnecessary barriers to trade and be based on techni cal standards and 
regulations. Conformity assessment activities may be carried out by suppliers, the buyer or 
consumer, or a third party. Conformity assessment procedures should be established according to 
the characteristics of the product, process or ser vice to be evaluated. They may include: the 
supplier's declaration of conformity, certification, inspection, labelling and testing. Conformity 
assessment procedures for technical regulations should be established by the competent 
regulatory entity in partn ership with the INNOQ, in order to be granted the right to use the 
national conformity mark. These procedures, when voluntary, are established by the INNOQ. The 
management of the national conformity mark is the INNOQ's responsibility. As indicated by the 
authorities, testing is conducted by both public and private testing laboratories. For imported 
products that have been tested and certified by an accredited body abroad, no additional 
certification or testing is carried out within Mozambique. Inspection an d market surveillance is 
undertaken by the National Inspection for Economic Activities Authority (INAE). If products are 
found not to comply  with relevant regulations either a fine may be issued or the commercialization 
of the product may be prohibited. Th e INAE may request Customs to prevent the entry of banned 
products.  
3.1.7.4   Labelling requirements  
3.56.   Under the Pesticides Management Regulation, all pesticide  packages must have a label 
approved by the Registrar of the Agrochemicals Registration and Control Departme nt (Repartição 
de Registro e Controlo de Agroquímicos (RRCA)). This label must identify the product, the holder 
of the registration, preventative measures, warnings and precautions, directions for use and first -
aid procedures. Labels must be expressed in t he metric system. Specifications about active 
substances should be the same as those contained in the pesticide and should meet international 
standards. Information must be in Portuguese and may also simultaneously be provided in other 
                                                
61 WTO documents G/TBT/N/MOZ/2 , 19 October 2012 and G/TBT/N/MOZ/3 , 19 October 2012, 
respectively.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  languages. Imported pesticides need to carry the approved label before entering the Mozambican 
territory, except in exceptional and approved circumstances.62 
3.57.   As mentioned above, pre -packed products are also subject to labelling requirements. A new 
regulation has also entered i nto force on the labelling and advertising of aquatic food products 
(Ministerial Order No. 247/2011); the various requirements (which, inter alia,  relate to labelling of 
ingredients, quantities, conditions of use, and place of origin, etc.) apply to both d omestically 
produced and imported products.63 As noted in Mozambique's previous Review, the requirement to 
display origin on the label is for consumer protection purposes, not for determining origin in the 
customs sense (it has no bearing on the goods' tari ff treatment).64  
3.1.8   Sanitary and phytosanitary requirements  
3.58.   Responsibility for developing and implementing sanitary and phytosanitary measures rests 
with the Ministry of Agriculture and Food Safety for measures relating to animal and plant health, 
animal medi cine, seeds and pesticides, and the Ministry of Health for measures relating to food 
safety and pharmaceutical products.65 The National Phytosanitary Authority is responsible for 
undertaking inspections and the testing of vegetables and vegetable products, for import, export 
and other purposes.66 The National Veterinary Authority undertakes inspections and testing 
relating to animals and their products. The Institute of Fish Inspection carries out inspections 
related to fisheries products. The owners of these  commodities are responsible for bearing the 
inspection costs.  
3.59.   Mozambique is a member of the Codex Alimentarius Commission, the World Organization 
for Animal Health (OIE) and the International Plant Protection Convention (IPPC).  
3.60.   In 2008, the SADC Trade Pro tocol was amended to include an annex dedicated to SPS 
measures. The objectives of the annex are, inter alia , to improve member States' implementation 
of the WTO Agreement on the Application of SPS Measures, to enhance their technical capacity to 
monitor S PS measures and to provide a forum for addressing SPS -related matters including 
disputes.67 SPS provisions are also contained in Articles 60 -67 of the EU -SADC Economic 
Partnership Agreement (EPA)  (Section  2).68 This article, inter alia , contains provisions o n 
cooperation to address problems arising from SPS measures, particularly on listed priority products 
and sectors69; capacity building; and exchange of information. The authorities confirmed that 
Mozambique has not entered into any agreements relating to th e equivalence of SPS measures, 
inspection , or certification systems with third countries.  
3.61.   For WTO purposes, Mozambique's national notification authority is the National Directorate 
of Livestock, and its national enquiry point is the Plant Health Department ; both fall under the 
responsibility of the Ministry of Agriculture and Food Safety. Mozambique has made two SPS 
notifications to the WTO, both in 2012. One notification inform ed Members of the entry into force 
of a regulation on phytosanitary inspection a nd plant quarantine in 2009 (see below).70 The other 
is a notification by the National Plant Protection Organization of Mozambique of phytosanitary 
                                                
62 In emergency cases, pesticides can be imported with non -approved labels if authorized by the 
Registrar. Labelling within th e country may be approved by the Registrar if a justification is provided by the 
importer (Article 12).  
63 Ministerial Order No. 247/2011 of 2 November 2011 establishing a specific legal labelling regime for 
aquatic food products. Viewed at: http://faolex.fao.org/docs/pdf/moz119825.pdf . 
64 WTO document WT/TPR/M/209/Add.1, 8 July 2009.  
65 Over the review period, there have been some institutional changes; the Ministry of Agriculture and 
Fisheries has  been split into the Ministry of Agriculture and Food Security and the Ministry of the Sea, Inland  
Waters  and Fisheries.  
66 Its governing legislation is Decree No. 5/2009 of 1 June 2009.  
67 SPS annex. Viewed at:  
http://www.sadc.int/files/7413/5817/6371/SADC_Sanitary_and_Phyto_Sanitary_ANNEX.pdf .  
68 EU SADC EPA. Viewed at: http://trade.ec.europa.eu/doclib/docs/2015/october/tradoc_153915.pdf . 
69 These products and sectors are listed in Annex VI to the EPA. For harmonization  within  the SADC EPA 
States', they are: fish, fishery products, aquaculture products (fresh or processed); ca ttle, sheep and poultry; 
fresh meat; processed meat products; cereals; vegetables and spices; oilseeds; coconut; copra; cotton seeds; 
groundnut; cassava; beer; juices; and dried and canned fruits. For export from the SADC EPA States to the 
European Union, they are: fish, fishery products and aquaculture products (fresh or processed); beef and beef 
products; other meat products; fruit and nuts; vegetables; cut flowers; coffee; and sugar.  
70 WTO Document G/SPS/N/MOZ/1, 12 April 2011.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  requirements to import certain commodities into Mozambique.71 No specific trade concerns have 
been raised by W TO Members about Mozambique's SPS measures in the WTO's SPS Committee.72  
3.62.   In the context of this Review, the authorities indicated that all SPS measures are based on 
international standards.  
3.63.   Over the review period, there have been several changes to SPS -related laws and 
regulations, namely in the areas of: animal health; plant health; GMOs; seeds; pesticides; and 
food of aquatic origin.  
3.64.   Animal health regulations are set out in Decree No. 26/2009 of 17 August 2009, which 
revokes Decree No. 08/2004 of 1 Januar y 2004.73 The authorities indicated that changes were 
introduced in order to update Mozambique's regulatory framework to reflect new SPS realities, and 
that they are now working on a further update. The animal health regulations, inter alia,  prescribe 
the p rocedures for controlling animal diseases within the country, and contain rules and conditions 
for importing and transporting livestock and derived products. They set out certification and 
licensing requirements and procedures; animal health measures; and penalties for 
non-conformity.74 Each import consignment of animals and thei r products (as well as their 
by-products, fodder and organic products) must be accompanied by an international health 
certificate from the official veterinarian of the exporting coun try and an import licence (valid for 
60 days) obtained from the Mozambique Veterinary Authority. A transit licence, also obtained from 
the Mozambique Veterinary Authority, is required for such goods in transit. The entry, exit and 
transit of goods covered by the regulations must be in sealed vehicles or containers. All goods are 
inspected at the border and all health -related charges relating to imports, exports and transit of 
these goods are borne by the carrier; these are set out in Minis terial Diploma No.  9/2007 of 
31 January 2007.75 The authorities indicated that certain products must pass through specific 
border posts. Under the animal health regulations, the Veterinary Authority is charged with 
proposing to the Government restrictions on imports of goods  of vegetable origin which it suspects 
are the cause of animal disease. The importation of animals fed with hormones (or their products) 
is not permitted.  
3.65.   Decree No. 5/2009 of 1 June 2009 on the Regulation of Phytosanitary Inspection and Plant 
Quarantine aims to prevent and control pest propagation in the country.76 In particular, its 
objectives are to prevent the introduction and spread of harmful organisms; to control and 
eradicate such pests ; and to secure the necessary means to undertake phytosanitary i nspection 
and certification of imports and exports.77 The 2009 Regulations replace Diploma No. 134/2002, 
with changes designed to strengthen Mozambique's capacity to comply with international quality 
and phytosanitary standards to support its exports, and e nsure Mozambique's compliance with 
IPPC international phytosanitary standards and IPPC guidelines (Mozambique joined the IPPC in 
2008).78 The National Phytosanitary Authority is charged with implementing the provisions of the 
Decree, including determining p lant quarantine measures. Requirements and restrictions for plants 
are contained , on a product -by-product basis , in Annex I to the Decree; if a product is not on this 
                                                
71 This list of phytosanita ry requirements for certain commodities may be viewed at: 
https://members.wto.org/crnattachments/2012/sps/MOZ/12_1490_00_e.pdf . 
72 WTO SPS Information Management System. V iewed at: http://spsims.wto.org . 
73 Animal Health Regulations , Decree No. 26/2009 of 17 August 2009. Viewed at: 
http://faolex.fao.org/docs/pdf/moz111915.pdf . 
74 Faolex. Viewed at:  http://faolex.fao.org/cgi -
bin/faolex.exe?rec_id=111915&database=faolex&search_type=link&table=result&lang=eng&format_name=@E
RALL. 
75 Transit licences for living animals range from Mt 0.5 to Mt 50 per unit; transit lice nces for products 
and sub -products of animal origin range from Mt 0.1-0.5 per kg; slaughtering permits range from Mt 0.25 to 
15.00Mt/unit; import licences for living animals range from Mt 150 to Mt 500/licence; import licences for 
products and sub -products  of animal origin range from Mt 150 to Mt 200/licence; sanitary certificates for 
export of living anima ls range from Mt 150 to Mt 500/certificate; sanitary certificates for export of products and 
sub-products of animal origin range from Mt 100 to Mt 200/ce rtificate; and quarantine prescriptions are 
Mt 200/term of quarantine. Inspection fees range from Mt 0.1-Mt 1/kg for most products and sub -products of 
animal origin (the exception of milk and its derivatives ( Mt 0.15/litre)); eggs ( Mt 0.15/dozen) and troph ies 
(Mt 200/unit).  
76 Decree No. 5/2009 of 1 June 2009 on the Regulation of Phytosanitary Inspection and Plant 
Quarantine. Viewed at: http://faolex.fao.org/docs/pdf/moz112020.pdf . 
77 Article 3.  
78 WTO Document G/SPS/N/MOZ/1 , 12 April 2011 and Decree No. 5/2009 , 1 July 2009.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  list then it is subject to pest risk analysis. Imported goods falling under the scope of this regulation 
may be imported through any official border point. In the context of this Review, the authorities 
indicated that national infrastructural weaknesses and a shortage of expertise made it challenging 
to do their job properly; they often collab orate with regional institutions, particularly with respect 
to detection of new pests. They also noted that an update to the Regulations is currently being 
undertaken in order to respond to changes to the national phytosanitary situation and to facilitate 
market access for Mozambican exports.  
3.66.   The regulation of seeds is governed by the Seeds Regulation Decree No. 12/2013 of 
10 April 2013, which revokes an earlier decree dating back to 1994 and its implementing 
regulations.79 The new Decree consolidates variou s seed -related regulations into one; it introduces 
a system for plant variety registration at the SADC level and standards for the certification of 
seeds; and it removes a prohibition on GMO seed (which now comes under Decree No. 17/2014). 
The Decree intro duces procedures for the certification, import and export of vegetable materials. 
Importers must be registered with the National Seed Authority, which falls under the Ministry of 
Agriculture  and Food Safety . For imports of seeds which are listed on a natio nal official list, 
permission per shipment is required from the National Seed Authority and SPS requirements must 
be followed. Seeds not contained on this list may only be imported for personal use or for research 
purposes and, in these cases, permission i s required from the Ministry of Agriculture  and Food 
Safety . Quality certificates are required, either from the OIE or from the competent authority in 
the country of origin. All imports of seeds accompanied by an OIE or a SADC seed harmonization 
system cer tificate are not tested in Mozambique; in all other cases, testing takes place.  
3.67.   A new decree on GMOs entered into force in 2014 (Decree No. 17/2014). However, a copy 
of this legislation was not made available and its implications for the production and tra de of 
products containing GMOs could not be ascertained.  
3.68.   The Pesticide Management Regulation entered into force in 2009 (Decree No. 6/2009)80; it 
aims to ensure all processes involving working with or handling pesticides ( inter alia , including 
imports and e xports) are executed without prejudice to public, animal and environmental health. 
Under the regulations, companies importing registered pesticides must obtain a Pesticide Importer 
Registration Certificate from the National Directorate of Agricultural Serv ices (Direcção Nacional 
dos Serviços Agrários, DNSA).81 In assessing the request, the Registrar of the DNSA may visit the 
applicant's premises to ensure certain conditions are in place (i.e. storage, capacity, handling 
conditions, and qualifications of pers onnel). Certificates are valid for one year (renewable for one 
year). Import permits are required for each shipment of pesticides; these are issued by the 
Registrar of the DNSA, are valid for three months (extendable for a further three months) and are 
subject to a fee. Importers must provide import information to the DNSA within 15 days of 
importation. Large quantities of imports must be accompanied by an analysis certificate. Imported 
pesticides must be valid (i.e. be useable) for at least a year and a ha lf. 
3.69.   A regulation on the hygiene and sanitary controls for aquatic food products entered into 
force in 2010 (Decree No. 76/2009 of 15 December 2009).82 Its objectives are to implement new 
rules to fulfil export market requirements, provide better consumer pr otection, and verify 
compliance. The Regulation charges the competent authority, the National Institute of Fish 
Inspection, with issuing  rules on official controls of imported products and on the import process 
itself. These rules are set out in Ministeria l Order No. 135/2011 of 27 May 2011, which stipulates 
that imports of food products of aquatic origin (weighing over 10 kg) and of feed for aquatic 
animals (regardless of the amounts) must be accompanied by a sanitary import licence issued by 
                                                
79 Decree No. 12/2013. Viewed at: 
http://masa.gov.mz/images/stories/pdf_files/legislacao/Sementes/regulamento%20de%20semente%2012201
3.pdf. This revokes Decree No. 41/1994 of 20 Se ptember 1994 and the following Ministerial Diplomas: No. 
95/1991; No. 6/1998; No. 67/2001; No. 171/2001 and No.  184/2001.  
80 Decree No. 6/2009. Viewed at: 
http://www.ilo.org/dyn/legosh/fr/f?p=LEGPOL:503:4008046117167:::503:P503_REFERENCE_ID :167708 . 
81 All pesticides must be registered with the DNSA; this is done through submission of an application to 
the National Director of Agricultural Services, together with a photocopy of the licence/permit of the company 
or institution. The registration  of pesticides is subject to a fee which varies according to the toxicity of the 
pesticide, and the process may take up to 120 days. Registered pesticides are published by the DNSA.  
82 Decree No. 76/2009 of 15 December 2009. Viewed at: 
http://faolex.fao.org/docs/pdf/moz111913.pdf . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  the competent  authority.83 Imported food products and feed must: comply with the hygiene and 
health requirements contained in Ministerial Decree No. 154/2010 of 24 August 2010 on hygiene 
and health requirements for the production of aquatic origin food; be accompanied b y a heath 
certificate from the country of origin; be transported in a means of transport so as to prevent 
contamination; comply with official rules relating to food of aquatic origin; and come from a place 
declared free from aquatic animal diseases. Import ers must request the inspection of batches of 
food products of aquatic origin at least five days before they are imported and, once landed, the 
goods must be stored in a facility licensed by the competent authority.  
3.70.   Other SPS -related laws in force which re mained unchanged over the review period are: 
Decree No. 15/2006 of 22 June 2006, which approves the regulations on hygienic -sanitary 
requirements of production, transport, trade, inspection and surveillance of food84; and the 
regulation on imported food (Mi nisterial Diploma No. 80/87 of 1 June 1987).85  
3.2  Measures Directly Affecting Exports  
3.2.1   Export procedures and requirements  
3.71.   Registration and licensing requirements for exporters remain unchanged since 
Mozambique's previous Review. All exporters in Mozambique mus t be licensed by and registered 
with the MIC; licensing is done at the single service counters in all provinces.86 Certificates of 
origin are issued by the Directorate -General of Customs; there are no fees to pay nor are there 
charges for registration. Expo rts of animals (and their products and by -products) require the 
permission of the Veterinary Authority, which must issue a veterinary certificate in accordance with 
the import permit requirements of the veterinary authority in the country of import.87 Opera tors 
must submit their declarations electronically through the single electronic window  (SEW) system.88 
3.72.   Over the review period, there appears to have been a significant reduction in the time taken 
to export. As noted in Mozambique's previous Review, the tim e taken to export was 26 days 
(according to the World Bank); by 2015, export times were around 6 days.89 According to the 
authorities, the required steps in the clearance process have been reduced from 32 to 7 as a result 
of the introduction of the SEW syst em. 
3.73.   Exporters of pesticides must be registered by the DNSA; export permits are also required 
for each shipment.90 Only national persons (including companies majority held by nationals) may 
export raw cashew nuts.91  
3.74.   The export of foreign currency is register ed for the purpose of gathering balance -of-
payments statistics.  
                                                
83 In order to facilitate trade, a provisional import health licence is issued which gives the importer 
permission to import, and once imports are verified, prior to sale , a final import licence is granted.  
84 Decree No. 15/2006. Viewed at: 
http://embalagens.gov.mz/docs/ind/embalagens/empresas/fotos/Regulamento%20sobre%20requisitos%20Hig
iénico -sanitários%20de%20produção.pdf  
85 Online information. Viewed at: 
http://embalagens .gov.mz/docs/ind/embalagens/empresas/fotos/Regulamento%20sobre%20alimentos%20im
portados.pdf . 
86 Regulations of Commercial Activity Licensing (Decree No. 34/2013 of 2 August 2013).  
87 Order of Service No.  21/DGA/2016. Viewed at: 
https://www.mcnet.co.mz/Files/Legislacao/Ordens/Ordem_de_servico_21_2016.aspx . 
88 Bank of Mozambique Notice No. 01/GBM/13 of 8 March 2013.  
89 The comparisons made are based upon data contained in the World Bank's Doing Business reports for 
2009 and 2016. However, the data collected is not identical. In the World Bank's 2009 report, it was estimated 
that the time taken to export was 26 days and the cost to export was US$1,200 per container. In th e World 
Bank's 2016 report, more detailed data is gathered. It estimates that the time taken to export is: 70 hours for 
documentary compliance; 78 hours for border compliance; and 4 hours for domestic transportation. The costs 
of exporting are broken down into three categories: documentary compliance (US$435); border compliance 
(US$602); and domestic transport (US$300). The Doing Business reports were viewed at: 
http://www.doingbusiness.org . 
90 Pesticides Managem ent Regulation (Decree No. 6/2009 of 31 March 2009), Article 25.  
91 Decree No. 33/2003 of 19 August 2003.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.2.2   Export taxes, charges and levies  
3.75.   Mozambique imposes an export tax of 18% of the f.o.b. customs value on raw or 
unprocessed cashews. The objective of the measure is to encourage domestic proces sing of 
cashew nuts and promote employment.92 There is no export tax levied on processed cashews.  
3.76.   Since 2011, Mozambique has levied fees on the export of all raw and processed timber 
under the Regulations on the Timber Overvaluation Rate (Decree No. 21/2011 ).93 The fee rate 
varies according to the level of processing, from Mt 3,750/m3 to Mt 19,500/m3.94 As set out in the 
Regulations, timber producing species are classified according to their commercial value, rarity, 
usefulness, resistance and quality, into cl asses of precious wood (with classes ranging from 1 to 
4). Exports of timber in class 1 may only be exported after being processed. Exports of timber 
under classes 2 -4 may be exported under licence or under a forest concession scheme. As 
indicated by the a uthorities, these fees were introduced so that forest use is sustainable through 
revenue collection in order to protect the environment, and to promote secondary processing so as 
to create jobs.  
3.77.   As noted in Mozambique's previous Review, certain items which  are almost entirely exported 
are subject to charges, such as: cotton (Cotton Development Tax of 3.5 -5%); fisheries products 
(fisheries licence fees); and mining products (production taxes) ( Section  4).  
3.2.3   Export prohibitions and restrictions  
3.78.   Mozambique's ex port prohibitions and restrictions are largely set out in Decree No. 34/2009 
of 6 July 2009, General Rules for Customs Clearance of Goods, replicated in Tables 3. 20 and 3.2 1.  
Table 3.20 Export prohibitions, 2 016 
Export prohibitions  
Food products not meeting the conditions set out in the legislation in force, or in a poor state of conservation  
Commodities with fake batch numbers, trademarks or provenance, in contravention of the laws and treaties in 
force 
Ivory and ivory works, except when the export is specifically authorized by special arrangement  
Bills and coins in use in the country, beyond the limits set by the Bank of Mozambique  
Collections and works of art which are national artistic or cultural her itage, except as provided for in Article 47 
of Decree No. 34/2009  
Other commodities whose export is prohibited by specific legislation  
Source:  Decree No. 34/2009 of 6 July 2009, General Rules for Customs Clearance of Goods. Viewed at: 
https://www.mcnet.co.mz/Leis.aspx . 
Table 3.21 Export restrictions, 2016  
Product  Restriction  
Animals, animal remains and products  Authorization from the Veterinary Services  
Manuscripts, stamps, coins, weapons and other 
objects of historic or archaeological value  Authorization from the Minister of Culture and 
Tourism  
Gold and silver, in powder or bar, platinum  Authorization from the Bank of Mozambique, granted 
based upon fulfilm ent of tax obligations  
Poisonous or toxic substances or drugs and their 
preparations  Permission from the minister responsible for health  
Precious timbers, precious or semi -precious stones  Authorization from the competent authorities (the 
Ministry of Land , Environment and Rural Development 
for timber and the Ministry of Mineral Resources and 
Energy for precious and semi -precious stones)  
Commodities subject to export surcharges  For each product, specific legislation exists indicating 
the nature of the rest rictions  
Ores Restrictions related to the agreements signed by the 
                                                
92 The governing legislation is Decree No. 22/2003 of 19 August 2003. The rate may be between 18% 
and 22% depending on domestic market demand. So far, t he rate has always been 18%.  
93 The governing legislation for these fees are Law No. 7/2010 of 13 August 2010 and its implementing 
regulation (Decree No. 21/2011). Viewed at: http://www.speed -program.com/wp -
content/uploads/2016/06/Decree -21-2011-Timber -Overvaluation -Rate-EN.pdf  (English translation) or 
https://www.mcnet.co.mz/Files/Legislacao/Decretos/Decreto_21_2011.aspx  (original in Portuguese).  
94 The latest rates are set out in Service Order No. 26/DGA/2016. This is not available online.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Product  Restriction  
Government and legislation in force  
Other commodities whose special export regime is 
determined by special legislation  Not applicable  
Source:  Decree No. 34/2009 of 6 July 2009, General R ules for Customs Clearance of Goods. Viewed at: 
https://www.mcnet.co.mz/Leis.aspx . 
3.2.4   Export promotion  
3.79.   Export promotion activities continued to be undertaken by the Instituto para a Promoção de 
Exportações (I PEX) until November 2016, when its functions (together with those of the CPI and 
GAZEDA) were subsumed under a new Investment and Trade Agency (Agência de Comércio e 
Investimentos). IPEX's main activities were to: influence policy on foreign trade; promote , develop 
and facilitate exports, in coordination with the private sector; collect, process and disseminate 
commercial information; and organize and facilitate national participation in fairs and trade 
missions abroad.95 It had a budget of Mt 21,756,000 in 2016 and did not charge exporters for its 
services. IPEX had suffered from various weaknesses which undermined its effectiveness96, but 
received external assistance from various sources to improve its services.97 
3.2.5   Export finance, insurance, guarantees  
3.80.   As indi cated by the authorities, the Government does not provide any finance, insurance or 
guarantee services.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
3.81.   Fiscal incentives offered by the Government of Mozambique are set out in the 2009 Code of 
Fiscal Bene fits (Law No. 4/2009 of 12 January 2009). This Code replaces previous legislation from 
2002, with key changes being: a movement away from a one -size-fits-all approach to providing 
benefits, to a more tailor -made approach with different incentive packages f or different sectors; 
removal of the possibility for exceptional authorization of fiscal benefits; more incentives for 
tourism promotion; and the extension of the corporate income tax exemptions period for IFZs to 
10 years.98 Fiscal benefits to the mining a nd petroleum industries are no longer offered under the 
2009 Code; instead these industries receive benefits under separate legislation ( Section  4). 
3.82.   Investments eligible for benefits under the Code fall into four categories : (a) investments 
carried out und er the scope of the Investment Law ( Section  2); (b) investments carried out 
outside the scope of the Investment Law in commercial and industrial  activities in rural areas; 
(c) investment in new infrastructures built for retail and wholesale commerce; and ( d) investments 
in manufacturing and assembly industries.  Certain activities are subject to specific benefits under 
the Code; in such cases the fiscal benefits offered may not be aggregated with other specific  or 
general benefits (Table 3.22 ). 
                                                
95 IPEX online information. Viewed at: http://www.ipex.gov.mz . 
96 UNIDO (2014 ,) Final Evaluation of Business Environment Support and Trade Facilitation Project in 
Mozambique . Viewed at: 
https://www.unido.org/fileadmin/ user_media_upgrade/Resources/Evaluation/EEMOZ08001_FinalEvalRep_incl_
Annexes_E.pdf . As noted in this report, weaknesses identified included: a lack of trade information and 
commercial intelligence; a slow internet broadband connection, which had not allowe d IPEX to design a 
centralized information system linking it to its regional offices; institutional and technical capacity limitations; 
and a lack of updated information on its website and in its publications.  
97 This included support to draft a National Ex port Strategy (although this was not approved) and 
capacity building assistance for export development and promotion activities vis-à-vis the European  Union . 
Apparently the latter assisted IPEX in identifying and improving some expor table products; increas ed 
value -added in Mozambican exports; improved information flows among export stakeholders; helped 
Mozambican companies understand EU market demands and requirements, leading to product and production 
improvements; and provided policy -makers with informati on on bottlenecks and gaps. As a result of the 
programme, IPEX reported that its staff had been equipped to undertake export audits both at the product and 
market levels, that stakeholders had been significantly empowered to contribute to export developmen t 
activities, and that the public -private dialogue on export development had been strengthened.  
98 WTO document WT/TPR/M/209/Add.1, 8 July 2009.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.83.   Investment i ncentives take various forms. Customs duty and VAT exemptions are generally 
limited to imports of capital goods and their spare and accessory parts (classified as "class K" in 
Mozambique's tariff schedule) as well as their spare and accessory parts.99 Corpo rate income tax 
exemptions or reductions granted are phased -out over a fixed time period.100 Personal income tax 
incentives are also provided if certain services are made publicly available. Investment tax credits 
for investments in new tangible fixed assets  comprise a time -limited deduction from corporate 
income tax, with the value of the deduction depending on the geographical area in which the 
investment is carried out. Accelerated depreciation and reintegration amounts considered to be 
deductible costs fo r determining taxable income (corporate and personal) can be increased by 
50% in various cases. For certain activities, corporate and personal income tax deductions can be 
made for a time -limited period for purchases of specialized equipment using new tech nology for 
the conduct of investment project operations. Corporate and personal income tax deductions may 
be enjoyed for investments in professional training of Mozambican employees. Certain other costs 
related to the construction and rehabilitation of pub lic infrastructure and the ownership of art and 
other objects representative of Mozambican culture may also be deducted from corporate and 
personal income tax.  
Table 3.22 Tax incentives offered under the 2009 Fiscal Benefits Code   
Customs 
duties  
VAT 
Corporate 
income tax  
Personal 
income tax  
Invest. tax 
credit  
Accelerated 
depreciation 
and 
reintegration  
Modernizatio
n, 
introduction 
of new 
technology  
Professional 
training  
Other  
General  X X   X X X X X 
Specific           
Creation of basic 
public infrastructure  X X X X      
Rural commerce and 
industry  X X        
Manufacturing and 
assemblya X         
Agriculture and 
fisheries  X X X X    X X 
Hostelry and tourism  X X   X X X X X 
Science and 
technology parks    X X      
Large dimension 
projects  X X   X X X X X 
Rapid Development 
Zonesb X X X X    X X 
Industrial Free Zones  X X X X      
Special Economic 
Zones  X X X X      
a To be eligible for customs duty exemptions, projects must have an annual invoicing of not le ss than 
Mt 3 million and a final product value -added of at least 20%.  
b Rapid Development Zones are geographic zones with natural resource potential but lacking in 
infrastructure and having a weak level of economic activity. Incentives are offered to speci fied 
activities.  
Source:  Law No. 4/2009 of 12 January 2009, Code of Fiscal Benefits. Viewed at: 
http://www.tipmoz.com/library/resources/documents/codeoffiscalbenefit s.pdf. 
                                                
99 For investments in rural commerce, there are additional exemptions for the following items: freezers, 
scales, weights, cash registers, oil and fuel meters , and counters.  
100 For investments in creating basic public infrastructure, there are staged reductions from 80% to 25% 
over a 15 -year period. Agriculture and fisheries industries were able to benefit from corpora te income tax 
reductions of 80% (until 31 December 2015) and then from a 50% reduction from 2016 to 2025.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.3.1.1   Special Economic Zone (SEZ) and Industrial Free Trade Zone (IFZ) regimes  
3.84.   Mozambique's IFZ regime has been in place since 1993101, and its SEZ regime since 2007. 
Chapters VII and VIII of the Investment Law Regulations (Decree No. 43/2009) set out the  
eligibility and procedural requirements for SEZs and IFZs.102 Fiscal benefits available to companies 
managing and operating within these regimes are set out in the Fiscal Benefits Code (see above). 
Fiscal and customs procedures and other operational conditi ons for IFZs and SEZs are set out in 
Ministerial Diploma No. 202/2010 of 24 November 2010.103 
3.85.   The Council of Ministers has authority to create SEZs and IFZs, based on a recommendation 
from the Investment Council ( Section  2). The Investment and Trade Agency ( previously the 
Special Economic Zones Office (GAZEDA)), promotes and coordinates activities related to the 
establishment, development and management of SEZs and IFZs. Its responsibilities include: 
coordination and development of initiatives to promote dome stic and foreign investment; 
receiving, checking and registering investment proposals to be operationalized in the zones; 
approval of investment projects; and the issuing of certificates and licences.104 
3.86.   SEZs are geographic areas of economic activity; there is no requirement for the SEZ to be a 
physically closed space. SEZ benefits are available to all types of legal economic activity as well as 
to companies constructing basic SEZ infrastructure. Benefits include a corporate income tax 
exemption (for the firs t three fiscal years) and reductions thereafter up until the 15th fiscal year, as 
well as exemptions from the payment of import taxes (including VAT) on construction materials, 
equipment, accessories, parts and other goods in pursuit of their licensed acti vities. Companies 
operating within SEZs are able to sell all manufactured goods to the local market but must pay 
customs duties, VAT and, where applicable, excise duties on the value of imported goods.105 The 
sale of goods and services into a SEZ by local do mestic suppliers is considered to be an export. 
SEZs have a more liberal quota for employment of foreigners (15% rather than 10% under the 
general regime). Integrated Tourism Establishment Zones are also considered to be SEZs and they 
are subject to the sa me conditions and benefits, plus they are not required to pay customs duties, 
VAT and excise taxes when they sell to the domestic market.  
3.87.   IFZs are closed physical areas which must have security systems in place. All industrial 
activities are permitted, exc ept for exploration for, and extraction of, natural resources and the 
manufacture of arms and explosives. The processing of prawns, fish and cashew nuts, which was 
not previously accepted as an IFZ activity is now permitted under Decree No. 43/2009. Sevent y 
per cent of annual production must be exported, unless flexibility is granted by the Minister of 
Planning and Development (previously 85% of annual production had to be exported).106 A 
corporate income tax exemption is offered for the first ten fiscal year s with reductions thereafter 
for the project life cycle. Benefits also include exemption from the payment of import taxes 
(including VAT) on construction materials, equipment, accessories, parts and other goods in 
pursuit of the SEZ's licensed activities ( previously there was an income tax reduction of 60% for 
10 years). Companies building the basic IFZ infrastructure are eligible for the same benefits as IFZ 
companies. Companies wishing to establish outside of an IFZ but enjoy the benefits of the IFZ 
regim e must either: make an initial investment of Mt 25 million or more within the first two years 
of activity; or have a current or planned installed power capacity of 500  kVA or more. MFN 
customs duties, VAT and excise taxes (if applicable) must be paid on sa les by IFZ companies to 
the domestic market. The sale of goods and services to an IFZ by local domestic suppliers is 
                                                
101 As noted by the authorities, Law No. 3/1993 (Investment  Code) anticipated the creation of IFZs; 
and, in 1997, the first company (Mozal) was approved  under this regime.  
102 Decree No. 43/2009. Viewed at: 
http://www.acismoz.com/lib/services/translations/Regulation%20on%20Investment%20Law.pdf . This replaces 
the previous Investment Law Regulations (Decree 14/93), with the exception of Article 4 which relate s to the 
establishment of the Investment Promotion Centre (CPI).  
103 Ministerial Diploma No. 202/2010 of 24 November 2010. Viewed at: 
http://www.gazeda.gov.mz/m/files/legislacao/fromBRsCartaServico/8+DiplomaMinisterial202+de24+Novembr
o.pdf.  
104 GAZEDA online information. Viewed at: 
http://suedafrika.ahk.de/fileadmin/ahk_suedafrika/SADC_Info/Maputo_documents/Gazeda_free_zones_Germa
n_Business_Mission.pdf . 
105 Ibid. 
106 Corporate income tax reductions are 50% for the 11th to the 15th fiscal year; and 25% during the 
project life cycle.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  considered to be an export. IFZs have a more liberal quota for employment of foreigners (15% 
rather than 10% under the general regime).   
3.88.   As at November 2016, there were approved projects in three SEZs and two IFZs 
(Table  3.23). In addition, there were 13 companies operating under Isolated Industrial Free Zone 
Regimes around the country. The Government is seeking to attract investors to explo it potential 
opportunities, particularly in the areas of: agriculture and agri -processing; light manufacturing; 
wood and mineral processing; aquaculture; services; technology parks; and tourism.107  
Table 3.23 SEZs and IFZs, 2016  
Regime  Type  Governing 
legislation  Management  Commercial activities within 
SEZ/IFZ (domestic/foreign 
equity)  
Zona Económica 
Especial de Nacala  SEZ Decree 
No. 76/2007 of  
18 December 
2007 Public  159 approved projects in the areas 
of comme rce, hotels and tourism, 
industry, construction, agriculture 
and health  
Zona Económica 
Especial de Manga 
Mundassa  SEZ Decree  
No. 22/2012 of  
6 July 2012  Private  2 approved projects in the area of 
industry  
Zona Económica 
Especial de Mocuba  SEZ Decree No.  
28/2014 of  
6 June 2014  Public  7 approved projects in industry, 
hotels and tourism, agri -business 
and services  
Integrated Tourism 
Resort Area of Crusse 
and Jamali  SEZ Decree No. 
47/2013 of 30 
August 2013  Private  No projects approved yet  
Zona Franca Ind ustrial 
de Beluluane  IFZ Internal 
Resolution 
No. 15/99 of  
12 October 1999  Private  24 approved projects  
Zona Franca Industrial 
de Locone  IFZ Decree  
No. 50/2011 of  
10 October 2011  Private  1 approved project  
Zona Franca Industrial 
de Minheuene  IFZ Decre e  
No. 51/2011 of  
10 October 2011  Private  No projects approved yet  
Zona Franca Industrial 
de Mocuba  IFZ Decree  
No. 29/2014 of  
6 June 2014  Private  No projects approved yet  
Source:  Information provided by the authorities and GAZEDA online information. V iewed at: 
http://www.gazeda.gov.mz . 
3.3.2   Competition policy  
3.89.   Mozambique promulgated its first historic Competition Law (Law No. 10/2013 of 
11 April 2013) in 2013, and its implementing regulations in 2014 (Decree No. 97/2 014 of 
31 January  2014). This Law was the first step in Mozambique's efforts to establish a modern 
regime on competition as envisaged in Resolution No. 37/2007 of 12 November 2007, described in 
Mozambique's previous Review.108  
3.90.   Decree No. 37/2014 of 1 August  2014 approved the Organic Statute of the Competition 
Regulatory Authority (ARC) to enforce the provisions of the Competition Law. The ARC, once 
operational, will have authority to supervise, regulate, investigate and sanction, and will also be 
required to  coordinate its activities with other regulatory authorities in the application of the Law 
(currently the Bank of Mozambique, the Communications Institute of Mozambique, the National 
Petroleum Institute, the Water Regulation Council, the National Institute  of Civil Aviation, the 
National Institute of Insurance Supervision, the National Institute of Land Transport, the National 
Naval Institute, and the Institute of Information and Communications Technologies).109 It must 
                                                
107 GAZEDA online information. Viewed at: http://www.gazeda.gov.mz/folhetosZonas/mocuba.pdf  and 
http://www.gazeda.gov.mz/folhetosZonas/mangamungassa.pdf . 
108 WTO document WT/TPR/S/209/Rev.1, 30 June 2009 (Chapter 4(ii)).  
109 Articles 7 and 11 of the Law provide for collaboration agreements to be reached between the CRA 
and sectoral regulatory authorities to regulate procedures and information exchange mechanisms.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  submit annual reports on its activities  and financial accounts to the Government (which are then 
published in the Government Gazette – Boletim da República ) as well as publish its priorities on an 
annual basis.110 The Law also provides for Parliamentary scrutiny of the ARC's activities. The ARC's  
managing board is responsible for decision -making; it is to comprise five members, to be 
appointed by the Government for a five-year term (renewable for five additional years). It will be 
supported by a Chairperson who will undertake investigations as wel l as consider merger 
activities.111  
3.91.   The Competition Law applies to all economic activities undertaken in Mozambique or having 
an effect on it by private and public enterprises, with a few exceptions.112 The Law, which was 
apparently based upon competition reg imes in the EU, notably Portugal, has two pillars: anti -
competitive practices and merger control.  
3.3.2.1.1   Anti-competitive practices  
3.92.   Under the Law, prohibited anti -competitive practices include: horizontal agreements 
between competitors which aim to, or have the e ffect of, impeding, distorting or restricting 
competition; vertical agreements between companies and their customers and suppliers; and the 
abuse of dominant position by a dominant enterprise. Specific examples of prohibited types of 
conduct under each of these titles are contained in the Law and reproduced in Table 3.2 4. 
However, these practices may be allowed if their purpose is to: contribute to improving the 
production or distribution of goods and services; reduce consumer prices; accelerate economic 
development; stimulate the technological development and innovation of national enterprises; lead 
to a better allocation of resources; promote national products and services; promote exports; 
promote the competitiveness of small and medium -sized enterprises;  contribute to the 
consolidation of national entrepreneurship; or protect intellectual property. To be so exempt, a 
request must be made to the ARC by the  interested parties; the ARC will make an assessment and 
determine the conditions and validity period of the exemption.113 
3.93.   The ARC may open an enquiry when it becomes aware of strong indications of anti -
competitive practices by either public or private enterprises; this may be based upon, inter alia, a 
complaint by an interested party. The ARC must notify th e enterprise in question of the purpose 
and duration of the investigation and the enterprise has 30 days to express their opinion in writing 
regarding the allegations. If the ARC finds that there are facts which fall within the domain of a 
sectoral regulat ory authority during the course of its investigation, then it must provide that 
authority the opportunity to express an opinion. The final inquiry report, together with its 
recommendations, must be submitted to the ARC's executive body within five days of its 
completion. The executive body may then make a decision as to whether to initiate disciplinary 
action. These decisions must be published in the Government Gazette (Boletim da República). The 
Competition Law also contains provisions for immediate suspen sion of a practice, on a temporary 
basis, if, during the course of the investigation, the ARC considers that the practice is causing 
serious or irreparable damage.  
Table 3.24 Prohibited anti -competitive practi ces under the Competition Law  
Prohibited 
practice  Examples  
Horizontal 
agreements  Adoption of uniform/agreed commercial conduct; fixing prices; provoking price oscillations; 
fixing of other conditions of transactions realized in the same or different stag es of the 
economic process; controlling and limiting the production of goods/provision of services; 
partitioning of markets/supply sources; developing other practices agreed upon to obtain 
advantages and interfering with/influencing the results of public t enders for the supply of 
goods or services; and limiting/ impeding new enterprises' access to the market.  
                                                
110 Competition Law, Articles 12 and 14.  
111 U.S. Department of State  (2015), Mozambiq ue Investment Climate Statement  2015. Viewed at: 
http://www.state.gov/documents/organization/241884.pdf . 
112 The Law does not apply to: (a) collective agreements established or to be est ablished with workers ' 
organizations under the terms of the Labour Law; (b) practices with a non -commercial objective; 
(c) agreements resulting from international agreements which do not prejudice the national economy; and 
(d) cases calling for the specifi c protection of a sector of the economy, benefiting the national interest or the 
consumer.  
113 Section V of the Competition Law sets out the procedures for the submission and consideration of 
exemption requests.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Prohibited 
practice  Examples  
Vertical 
agreements  Discrimination regarding prices/equivalent services; refusal to purchase/sell goods or provide 
services without just cause; agree ments subject to acceptance of supplementary obligations 
that are not related to the subject of the contract; making the sale of goods/provision of 
services subject to the acceptance of  payment conditions that differ from/are contrary to 
normal commercial  usage; making commercial relations subject to acceptance of unjustifiable 
or anti -competitive clauses and commercial conditions; imposing on distributors conditions 
vis-à-vis third parties such as resale prices, discounts etc.; discrimination against supp liers or 
consumers through differentiated setting of prices or operational conditions; making the sale 
of goods/provision of a service subject to the purchase of another good/use of another 
service; and imposing excessive prices or increasing prices withou t just cause.  
Abuse of 
dominant 
position  Horizontal and vertical agreements; refusing to facilitate access, against adequate 
remuneration, to network/other crucial infrastructure; breaking commercial relations without 
justification; obliging/inducing a su pplier or consumer not to establish commercial activities 
with a competitor; unjustifiably selling merchandise below cost price; importing merchandise 
below the costs employed in the exporting country; and price discrimination under certain 
circumstances.  
Source:  Competition Law. Viewed at: http://www.osall.org.za/docs/2011/03/Mozambique -Competition -Law-
10-of-2013-Eng-Unofficial-version -as-at-2-July-2013.pdf . 
3.3.2.1.2   Merger control  
3.94.   The ARC controls mergers that consist, in particular, of the acquisition of: all or part of the 
enterprises' capital stock; the ownership or the right to use all or part of an enterprise's assets; or 
rights/agreements that grant a dominant influence on the deliberation of an enterprise's bodies. A 
notification must be made to the ARC if the merging parties: (a) create or reach a market share of 
50% or more; (b) create or reach a market share of 30% or mo re but below 50% when, in the last 
financial year, the turnover in Mozambique of the smallest of the merging companies was over 
Mt 100 million; or (c) have a combined turnover of over Mt 900 million net.114 Mergers of other 
enterprises are only subject to no tification at the explicit request of the ARC. 
3.95.   Enterprises engaging in a merger must notify the ARC within seven days of entering into the 
agreement. The ARC must then publish the essential elements of the agreement in two 
newspapers with national circulat ion, giving interested parties a maximum of 15 days to comment. 
Following this comment period, the ARC has 30 days to complete its investigation and provide the 
deliberative body with a report. The deliberative body then has a 30 -day period to decide wheth er 
to allow the merger to go ahead, to forbid the merger, or to start an in -depth investigation (which 
must be completed within a 60 -day period).115 
3.3.2.1.3   Sanctions  
3.96.   A violation of the prohibitions under the Competition Law may result in fines of up to 5% of 
the pr evious year's annual turnover. Failure to notify mergers and to cooperate with the ARC may 
result in fines of up to 1% of annual turnover. Fines also apply for the failure of experts/ 
representatives to appear as witnesses. Sanctions may be applied for a m aximum period of five 
years. Additional sanctions include, inter alia , excluding the offender from participating in public 
tenders for a five -year period.  
3.3.3   Price controls  
3.97.   Mozambique generally allows prices to be set by the market, with the exception of sug ar. 
There are also minimum purchase prices for growers of tobacco and cotton to ensure equitable 
gains ( Section  4). According to the authorities, the Government is studying ways to establish a 
reference price for growers of cashews. Fuel prices are regulat ed, with an adjustment mechanism 
for movements in world market prices applied on a monthly basis. Mark -ups on imported medicinal 
prices are also regulated.  
                                                
114 TTA Advogados online information. Viewed at : 
http://www.plmj.com/xms/files/newsletters/2015/Novembro/The_Regulation_of_the_Mozambican_Competitio
n_Law.pdf . 
115 If no decision is taken then it is considered that the CRA does not oppose the merger.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.98.   Mozambique also recently started to regulate profit margins for 12 staple commodities 
under Decree No. 56/2011 of 4 November 2011 (Regulation Fixing the Maximum Profit Margins in 
the Marketing of Commodities).116 This was in response to high domestic prices for these items, 
due largely to high retail and wholesale mark -ups. As noted by an external source,  even though 
profit margins for these goods are regulated, it would appear that high mark -ups still persist, 
particularly where there is no domestic competition, suggesting a lack of enforcement of the 
Decree. According to this source, interviews with the MIC confirmed that there is a lack of capacity 
to effectively enforce the Decree and penalize non -compliant retailers.117 
3.99.   Reference prices are applied to imports of sugar (Section 3.1.4.2.1); horticultural products; 
and certain items sold by small grocery st ores (Section  3.1.2).  
3.3.4   State trading, state -owned enterprises and privatization  
3.100.   In 2009, Mozambique notified to the WTO that it does not have any state trading 
enterprises with exclusive privileges within the meaning of Article XVII of the GATT.118 In the 
context of this Review, it was indicated that the sugar central selling desk (the National Sugar 
Distributor (DNA)) has exclusive rights to export sugar (Section  4.2.3. 1). 
3.101.   As noted by an external source, Mozambique's state -owned enterprises can be classified 
into two main categories. Firstly, there are "public enterprises" , which are 100% state -owned, 
operate in the public utility sector and have autonomy in the management of their assets. These 
enterprises are regulated by the Law of Public Enterprises (Law N o. 6/2012 of 8 May 2012), they 
report to their respective line ministries and are supervised by the National Directorate of 
Treasury, under the Ministry of Economy and Finance. Secondly, there are "state -participated 
enterprises", regulated by the Commerci al Code, whereby the State, through the State Shares 
Management Agency (IGEPE), is a full or partial shareholder. As at September 2016, there were 
14 public enterprises (Table 3.2 5) and 108 publicly  owned and state shareholding enterprises 
(Table A3. 1).  
Table 3.25 Public enterprises, 2016  
Enterprise  Activity  
ADM - AEROPORTOS DE MOÇAMBIQUE, E.P  Airport  
C.F.M - CAMINHOS DE FERRO DE MOÇAMBIQUE, E.P  Rail service  
CORREIOS DE MOÇAMBIQUE, E.P  Post office  
EDM - ELECTRICIDADE DE MOÇAMBIQUE, E.P  Energy company  
EMODRAGA - EMPRESA MOÇAMBICANA DE DRAGAGENS, E.P  Dredging company  
EMPRESA DE DESENVOLVIMENTO MAPUTO SUL - MAPUTO SUL, E.P  Regional development  
ENH - EMPRESA NACIONAL DE HIDROCARBONETOS, E.P  Hydrocarbon compa ny 
HICEP - HIDRÁULICA DE CHÒkWE, E.P  Food production  
IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P  National press  
PARQUE DE CIÊNCIA E TECNOLOGIA EM MALUANA, E.P  Information technology and 
services  
REGADIO DE BAIXO LIMPOPO - RBL, E.P  Irrigation scheme public 
enterprise  
RM - RÁDIO MOÇAMBIQUE, E.P  Radio  
TPB - TRANSPORTES PÚBLICOS DA BEIRA, E.P  Public transportation  
TVM - TELEVISÃO DE MOÇAMBIQUE, E.P  Television channel  
Source:  IGEPE.  
3.102.   Following a major wave of liberalization in 2003, the State has continued to gr adually 
divest itself of various assets (Chart 3.3). Over the review period, it liquidated 22 companies and 
sold an additional 20 to the private sector.  Since December 2015, the IGEPE has been assessing 
the State's portfolio, aiming to resize businesses, r educe operating costs, and seek strategic 
partners to enhance the profitability of its public enterprises and state -participated companies. In 
this regard, consideration is being given, inter alia , to company performance and profitability; 
                                                
116 A complete list of these commodities was not made avai lable.  
117 USAID S peed Program  (March 2015) , Price Variations in Mozambique – Final Report . Viewed at: 
http://www.speed -progr am.com/wp -content/uploads/2015/02/2015 -SPEED -Report -009-Price-Variations -
Across -Borders -EN.pdf . 
118 WTO document WT/STR/N/12/MOZ, 4 August 2009.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  growth prospects ; socio -economic and environmental impact issues; and their observance of 
corporate governance standards. During 2016, 45 state -participated companies and 15 public 
enterprises companies were evaluated as part of this process, with 27 being elected for 
restructuring. At the same time, 40 non -strategic companies have been earmarked for liquidation.  
Chart 3.3 Number of state -owned enterprises, 2001 -2016  
050100150200250300
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Note:      The number of SOEs may slightly vary according to the month of the year in which the data was collected.
Source:   IGEPE.Chart 3.3   Number of State -Owned Enterprises, 2001 -16
 
Note:  The number of SOEs may vary slightly according to th e month of the year in which the data was 
collected.  
Source:  IGEPE.  
3.3.5   Government procurement  
3.103.   In 2014, the estimated total value of government procurement at central and provincial 
government levels was Mt 47.9 billion (21.6 billion for goods ; 16.1 billion fo r services and 
10.2 billion for works).  
3.104.   Over the review period, the Government of Mozambique has continued to reform its 
procurement regime; a new procurement Decree was introduced in 2010, replacing legislation 
dating back to 2006 (Decree No. 15/2010 of 2 4 May 2010). The 2010 Decree was then replaced by 
new Public Procurement Regulations which entered into force on 6 June 2016 (Decree No. 05/2016 
of 8 March 2016 ). The objectives of legislative reform were to: increase transparency; reduce the 
use of direct  procurement; include a flexible new contracting modality (call for quotes); increase 
business opportunities for foreign competitors; introduce a chapter on public works contracts; 
remove barriers to the submission of complaints by competitors; increase th e thresholds for the 
application of limited tenders, small -size tenders and other forms of consultancy services; require 
the publication of award documents, including those of direct procurement; and organize the 
regulation in such a manner as to help tech nicians understand the requirements contained therein.  
3.105.   Other laws and regulations relevant to public procurement in Mozambique are: the rules 
governing the procedures of the Public Administration (Decree No. 30/2011 of 19 October 2011); 
the commercial and tax codes ( Section  2); the Anti -Corruption Law (Law No.  6/2004 of 
17 June 2004), the PPP Law ( Section  2); the Supervision Law of the Administrative Court; the Civil 
Code; and the Public Financial Management System (SIS TAFE) Law (Law No. 9/2002 of 
12 Februa ry 2002).  
3.106.   As before, the 2016 Public Procurement Regulations cover procurement of public works, 
and the purchase of goods and services by the State, including rental, consultancy and concession 
agreements. The Regulations must be implemented by all state b odies and institutions, including 
bodies which represent the State abroad, local authorities and other public authorities. The 
authorities confirmed that the regulations are being fully implemented. There are an estimated 
total of 1,635 of these so -called "contracting entities", 194 at the central government level and 
1,441 at local and provincial levels. As a result of changes introduced in 2016, procurement WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  regulations no longer apply to public enterprises or to enterprises in which the State has an equit y 
share (Section 3.3.4): these will be governed by specific separate legislation, which is being 
developed.  
3.107.   The overall institutional structure for government procurement has not changed since 
2006. Each contracting entity must have a competent authority with overall responsibility for 
procurement contracts (for example, within central government ministries this is usually at 
permanent secretary level or above). The competent authority is, inter alia , charged with 
determining the conditions and budget of t he contract; approving tender documentation; and 
awarding contracts. Each competent authority is assisted in its work by a procurement department 
which has responsibility for, inter alia , collecting procurement needs from departments to be 
included in the entity's annual procurement plan; developing procurement plans; preparing bidding 
documents; assisting tender committees; and liaising with the Functional Unit of Supervision of 
Acquisition (see below) on various matters. A tender committee is established by the competent 
authority for each tender issued; it comprises a minimum of three officers, including a 
representative from the procurement department and an officer with an understanding of the 
object to be procured. The Tender Committee prepares and sub mits an evaluation report to the 
competent authority containing factual and legal reasons for recommending an award.  
3.108.   Implementation of the Procurement Regulations by Contracting Entities continues to be 
overseen by the Functional Unit of Supervision of Acq uisition (Unidade Funcional de S upervisão 
das Aquisições (UFSA)), which falls under the Ministry of Finance. UFSA's responsibilities are set 
out in the 2016 Regulations (previously they were dispersed among  other Diplomas) and its main 
role is to propose n orms, and undertake supervision and training. The 2016 Regulations gave the 
UFSA new prerogatives to intervene actively in procurement procedures at any point and suspend 
tenders if there are irregularities. Contracting entities are required to inform the UFSA when 
tenders are launched.  
3.109.   As under previous procurement rules, all procurement procedures must fulfil various 
criteria, including: legality, public interest, transparency, openness, information, equality, 
competitiveness, impartiality, and good finan cial management. Various conditions must be met in 
the contracting process, including ensuring adequate advertising of the intention to contract; 
reasonable time periods set for interested bidders to prepare their proposals; fair competition; and 
the estab lishment of award criteria in advance.119 There remain three types of procurement 
regime: general; special; and exceptional (Table 3.2 6).  
Table 3.26 Procurement regimes, 2016  
Type  Use 
General  Public tender  
Special  Used for contracts arising from: treaties; international agreements; donor schemes by 
foreign official or financial institutions  
Exceptional  Used when considered appropriate in the public interest. Various modalities as below  
- Direct 
procurement   Can be used: when no other method of procurement is feasible; if procurement can only 
be undertaken by a single building contractor or supplier of goods and services; to 
maintain a uniform standard through the use of a previously contracted entity; in an  
emergency situation; in times of war or serious public disorder; if there had been no 
competitors in an earlier contest and to repeat the contest would prejudice the public 
interest; for procurements related to national security and defence; for contracts  for the 
supply of ships, vessels, military air units and troops (and their movement), under 
certain circumstances; for procurements by the State Security Information Services; 
and for lease contracts  
- Tender with prior 
qualification  Can be used when qua lification requirements are complex and preparation of 
documents is burdensome. Only pre -qualified suppliers may participate  
- Low value 
procurement  Used for natural persons, micro and small enterprises where the value of the contract is 
equal to 15% of the limited tender  
- Two-stage 
bidding  Used when the contracting entity is unable to establish precisely the technical 
specifications of the good or service to be acquired  
- Limited 
competition  Can be used when the estimated value of the contract does no t exceed Mt 5 million 
(previously Mt 3.5 million) for public works contracts and Mt 3.5 million for the supply of 
goods and provision of services (previously Mt 1.75 million)  
- Call for quotes   Can be used when (a) the estimated value of the procurement i s equal to or less than 
10% of the limit established for limited competition tenders (i.e. Mt 500,000 for public 
works contracts and Mt 350,000 for the supply of goods and provision of services); (b) 
                                                
119 The general procurement rules are set out in Article 11 of Decree No. 05/2016.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Type  Use 
if a previous tender contest resulted in the disqualific ation of all competitors and cannot 
be repeated without prejudice to the public interest; or (c) in the case of contracts 
made by consular and diplomatic missions  
Source:  Decree No. 05/2016 of 8 March 2016. Viewed at www.ufsa.gov.mz .  
3.110.   In 2015, nearly 50% of the total value of government procurement (at both central and 
provincial levels) was undertaken through competitive modalities; this largely reflects the situation 
in 2014 (Tables 3.2 7 and 3.2 8). 
Table 3.27 Use of procurement modalities, 2015  
Level  Regime  Modality  Value of 
goods  
(Mt 
'000,000)  Value of 
services  
(Mt 
'000,000)  Value of 
works  
(Mt 
'000,000)  Total 
value  
(Mt 
'000,000)  Total 
value 
(%) 
Central  General  Public tender  5,800  3,176  2,807  11,783  26 
  Consulting 
service  - 340 - 399 0.9 
 Exceptional  Direct  5,872  8,259  2,148  16,278  36 
  Prior 
qualification  806 278 354 1,438  3 
  Low value  49 120 1 170 0.4 
  Two-stage  135 69 35 239 0.5 
  Limited  339 585 166 1,090  2 
  Call for quotes  17 16 0.4 34 0.08 
  Consulting 
service  - 252 - 252 0.6 
 Special   48 204 24 276 0.6 
 n.a.  - 2,296  - 2,296  5 
       24 
Provincial  General  Public tender  1,750  478 670 2,928  6 
  Consulting 
service  - 120 - 120 0.3 
  Direct  2,126  2,360 611 5,097  11 
  Prior 
qualification  115 62 35 212 0.5 
  Low value  189 135 2 327 0.7 
  Two-stage  49 7 23 79 0.2 
  Limited  960 313 337 1,609  3.6 
  Call for quotes  14 0.6 0.1 14 0.03 
  Consulting 
service  - 54 - 54 0.1 
 Special   87 34 12 134 0.3 
 n.a.  - 360 - 360 0.8 
n.a. Not applicable.  
Source:  Information provided by the UFSA.  
Table 3.28 Use of procurement modalities, 2014  
Level  Regime  Modality  Value of 
goods  
(Mt 
'000,000)  Value of 
services  
(Mt 
'000, 000)  Value of 
works  
(Mt 
'000,000)  Total 
value  
(Mt 
'000,000)  Total 
value 
(%) 
Central  General  Public tender  6,890  2,979  5,138  15,007  31 
  Consulting 
service  - 424 - 424 0.9 
 Exceptional  Direct  8,955  7,480  2,750  19,186  40 
  Prior 
qualification  340 227 168 735 2 
  Low value  74 107 9 190 0.4 
  Two-stage  72 10 0.06 82 0.2 
  Limited  327 535 176 1,037  2 
  Call for quotes  64 44 12 121 0.3 
  Consulting 
service  - 132 - 132 0.3 
 Special   7 115 18 141 0.3 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Level  Regime  Modality  Value of 
goods  
(Mt 
'000,000)  Value of 
services  
(Mt 
'000, 000)  Value of 
works  
(Mt 
'000,000)  Total 
value  
(Mt 
'000,000)  Total 
value 
(%) 
 n.a.  - - - - - 
Provincial  General  Public tender  1,707 578 855 3,140  7 
  Consulting 
service  - 88 - 88 0.2 
  Direct  2,009  2,321  740 5,070  11 
  Prior 
qualification  87 53 28 168 0.4 
  Low value  171 108 17 296 0.6 
  Two-stage  5 10 3 18 0.04 
  Limited  730 480 230 1,440  3 
  Call for quotes  46 12 5 63 0.1 
  Consulting 
service  - 32 - 32 0.07 
 Special   98 46 19 162 0.3 
 n.a.  - 322 - 322 0.7 
n.a. Not applicable. Procurement under Article 2.3, including water, electricity , telecommunications,  
among others.  
Note:  Numbers have been rounded up/down.  
Source:  Information provided by the UFSA.  
3.111.   Foreign persons must have a representative in Mozambique to be eligible to tender. 
Contracting authorities must grant national suppliers a preference of 10% of the contract value for 
both public works contracts and the pr ovision of services, and a preference of 15% of the contract 
value for goods. With respect to goods, 20% of the ex -factory price of inputs must be sourced 
domestically; this threshold may be adjusted by the Minister of Finance, but information was not 
available regarding the conditions under which this discretion may be used. New procurement 
regulations have introduced a less restrictive definition of national suppliers; it now includes 
individuals or companies registered in Mozambique for more than five ye ars with majority foreign 
capital. However, the authorities indicated that priority is still to be given to companies constituted 
mainly by national capital; and, thereafter, to national suppliers with mostly foreign capital. Local 
content requirements for  the procurement of goods and services are contained in the new Mining 
Law (Section 4.3. 1.1) and the new Petroleum Law (Section 4.3. 2). 
3.112.   Appeal procedures have been improved; the requirement to provide collateral for the 
purpose of filing an appeal has been  withdrawn, and deadlines for making an appeal have been 
extended from three to five days.  
3.3.6   Intellectual property rights  
3.113.   In Mozambique, intellectual property (IP) is regarded as an instrument for stimulating and 
protecting creativity and innovation; and for  promoting the country's economic, scientific, 
technological and cultural development.  The IP Strategy 2008 -2018 contains the specific areas and 
respective actions to be undertaken to mainstream IP into the economy.120 The authorities 
indicated that they had  implemented around 50% of this Strateg y, which has involved 
awareness -raising campaigns to encourage registration of trademarks and patents; efforts to 
identify innovators in provinces and universities and help them draft patent applications; training 
activities; and reviewing laws and fees for the registration of IP rights.  
3.114.   The administration of the IP system is divided between industrial property and copyright 
and related rights. Mozambique also has legislation in force to protect plant varieties. Indust rial 
property includes: inventions (patents); trademarks, trade names, logos, names and insignia of 
establishment; utility models; industrial designs; appellations of origin; and geographical 
indications. Copyright includes literary and artistic works such  as drawings, paintings, photographs 
and sculptures, and architectural designs. Rights related to copyright include those of performing 
artists in their performances, producers of phonograms in their recordings, and broadcasters in 
their radio and televisi on programmes.  
                                                
120 Mozambique IP Strategy 2008 -2018. Viewed at: 
http://www.wipo.int/wipolex/en/text.jsp?file_id=202233 .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.115.   Mozambique has been a member of the World Intellectual Property Organization (WIPO) 
since December 1996. On 22 November 2013, Mozambique acceded to the Berne Convention for 
the Protection of Literary and Artistic Works. Mozambique is also a Contracting Party to the Paris 
Convention for the Protection of Industrial Property (accession in 1998), the Madrid Agreement 
(International Registration of Marks) (1998); the Madrid Protocol (1998); the Patent Cooperation 
Treaty (PCT) (2000); and the Nice  Agreement (Classification of Goods and Services) (2002).121 
Mozambique signed the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who 
Are Blind, Visually Impaired or Otherwise Print Disabled (WIPO VIP Treaty), in August 2013. The 
ratification process is ongoing. The authorities indicated that the Government is discussing 
whether to accede to the Hague Protocol.  
3.116.   Mozambique has been a member of the African Regional Intellectual Property Organization 
(ARIPO) since May 2000.122 The Harare Prot ocol of the Lusaka Agreement provides for regional 
filing of patent applications through the ARIPO.  
3.117.   Provisions on cooperation in the area of IPRs and possible future negotiations on IP 
protection are contained in the EU -SADC EPA (Article 16). Under the SAD C Trade Protocol, 
members are to adopt policies and implement measures within the Community to protect IPRs in 
accordance with the WTO TRIPS Agreement.123 
3.3.6.1   Industrial property  
3.118.   The Ministry of Science and Technology is responsible for policy formulation in the  area of 
industrial property, and the Instituto da Propriedade Industrial (Industrial Property Institute, IPI) is 
responsible for administration of its various segments. The IPI is a self -financed autonomous 
agency falling under the technical responsibilit y of the MIC. Enforcement of industrial property 
rights is the responsibility of the National Inspectorate of Economic Activities (INEA) in 
consultation with the IPI (see below). The INEA was established in 2010 ( Section  2) and  took over 
the responsibiliti es that previously fell under  the MIC in the IPR domain.  
3.119.   In 2015, Mozambique approved a new Industrial Property Code (Decree No. 47/2015), 
which entered into force on 31 March 2016.124 This revokes previous laws and regulations.125 As 
noted by the authorities,  legislative amendments are designed to promote competitiveness, 
industrialization and modernization of the economy and to increase exports. As noted by an 
external source, the main changes largely relate to  new deadlines, administrative and formatting 
issues and the clarification of certain sections (Box 3.1).126 Parallel imports of various forms of 
industrial property are prohibited under the new Code. The new Code has not been notified to the 
WTO.  
3.120.   Terms of protection for the various forms of industrial pr operty remain unchanged, 
namely: patents, 20 years; utility models, 15 years; industrial designs, 5 years (renewable for up 
to 25 years); marks, trade names, logos and names and insignia of establishments, 10 years 
(renewable indefinitely for 10 -year perio ds); and appellations of origin and geographical 
indications  (indefinite protection ). Computer programs are protected as literary works under 
copyright legislation (see below).  
3.121.   The Code (Article 92) still contains a provision for a compulsory licence to be  granted by 
the Minister of Industry and Commerce "without the consent of the proprietor of the patent, for 
reasons of public interest", but with "adequate remuneration". As reported in its previous Review, 
                                                
121 WIPO online information. Viewed at: http://www.wipo.int/wipolex/en/profile . 
122 Resolution of the Council of Min isters No. 34/1999. The ARIPO website was viewed at: 
http://www.aripo.org . 
123 SADC Trade Protocol (Article 24). Viewed at: 
http://www.sad c.int/files/4613/5292/8370/Protocol_on_Trade1996.pdf . 
124 Industrial Property Code. Decree No. 47/2015 of 31 December 2015. Viewed at: 
http://www.wipo.int/edocs/lexdocs/laws/pt/mz/mz02 5pt.pdf . 
125 Previous laws and regulations were: the Industrial Property Code (Decree No. 4/2006 of 
12 April 2006); a decree amending the Code in 2009 (Decree No. 20/2009 of 3 June 2009); and a 2009 
regulation on appellations of origin and geographical indi cations (Decree No. 21/2009 of 3 June 2009).  
126 Clarke, Modet and Co. online information. Viewed at: 
http://www.clarkemodet.com/blog/2016/03/new -industrial -property -code-in-
mozambique.html#.V2Du46GxW70 . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  in 2004, Mozambique issued its first compulsory l icence for the manufacture of antiretrovirals 
(ARVs), with annual royalties to the proprietor not to exceed 2% of sales.127 The authorities 
confirmed that, as at November 2016, these medicines were not being produced in the country 
and that no other compulso ry licences have been granted.  
Box 3.1 Key changes introduced by the 2015 Industrial Property Code  
 Improvements and simplification of the organizing and filing of applications for the registration of IPRs  
 Introd uction of the regional trademark registration system  
 Harmonization of the regime of contested appeals (requirements, deadlines and effects) with 
Law 7/2014  
 Consecration of the tutelary re course 
 Incorporation of the protection regime for denominations of o rigin and geographical indications into the 
Code 
 Introduction of the "names of establishment" protection regime as a new category of industrial property 
law 
 Reduction of deadlines for the filing of oppositions against applications for registration of indus trial 
property rights (from 60 to 30 days)  
 Establishment of extrajudicial mechanisms for resolving conflicts between private individuals in matters 
of industrial property  
 Increase in the periodicity of the Industrial Property Bulletin (from bi -monthly to m onthly)  
 Introduction of the substantive examination of patents and industrial designs  
 Elimination of the substantive examination of utility models  
 Elimination of the non -infringement of the exclusive right of the utility model  
 Introduction of fees for paym ent of substantive patent examinations  
Source:  Information provided by the authorities.  
3.122.   The IPI's online portal contains the information needed to file an application for a grant or 
renewal, including laws and regulations, forms, procedures, and fees.128 As noted by the 
authorities, the fee structure, which dates back to 2006, is being reviewed.129  
3.123.   The authorities indicated that there are 224 recognized patent and trademark agents in 
Mozambique. Upon receipt of an application, the IPI initiates the procedure for examination and 
eventual registration; unsuccessful applicants may appeal to the IPI. Industrial property titles are 
published in the Industrial Property Bulletin (not available online). The IPI is the receiving office for 
patent applications filed und er the PCT and through ARIPO as well as for applications for the 
international registration of marks under the Madrid Agreement (see above). Figures on IPR 
registrations filed and granted over the review period are set out in Tables  3.29 to 3.3 1. 
Table 3.29 Patent applications filed and granted, 2009 -2015  
Year National patent  Foreign patent  
Via Resident  Non-resident  PCT Harare  
Status  Filed  Granted  Filed  Granted  Filed  Granted  Filed  Granted  
2009 7 7 11 11 6 6 276 107 
2010 15 15 6 6 19 19 314 75 
2011 8 8 1 1 14 14 418 119 
2012 14 14 3 3 23 23 481 149 
2013 13 13 1 1 27 27 544 213 
2014 14 14 0 0 46 46 581 187 
2015 24 24 51 51 27 27 561 335 
Source:  Information provided by the authorities.  
                                                
127 As reported in Mozambique's previous Review, the lic ence (Compulsory Licence No. 01/MIC/04) 
notes that Mozambique is among the countries in Africa that have been worst hit by the HIV/AIDS pandemic. 
In 2006, the Government estimated  that there are  about 1.6 million HIV -positive Mozambicans, of which 
around 1 5% should be taking ARVs. However, only about one quarter of this population were receiving them. 
The licence was granted to Pharco Moçambique for patent rights to lamivudine, stavudine and nevirapine, as a 
fixed-dose combination. The text of the licence m ay be viewed at: 
http://www.cptech.org/ip/health/c/Mozambique/moz -cl-en.pdf . 
128 The portal may be viewed at: http://www.ipi.gov.mz/spip.php?rubrique39 . 
129 The fee structure currently in place is set out in Ministerial Diploma No. 188/2006 of  
13 December  2006.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table 3.30 Trademark applications filed and granted, 2009 -2015  
Year National trademark  Foreign trademark  
Via Resident  Non-resident  Madrid System  
Status  Filed  Registered  Filed  Registered  Filed  Registered  
2009 1,209  746 655 798 866 n.a. 
2010 1,066  587 1,007  1,304  889 n.a. 
2011 955 526 1,115  1,228  1,032  n.a. 
2012 1,388  582 1,092  1,148  1,078  n.a. 
2013 1,112  626 1,129  1,120  1,161  n.a. 
2014 1,274  724 1,329  1,464  1,151  n.a. 
2015 1,157  974 1,543  1,371  864 n.a. 
n.a. Not availabl e. 
Source:  Information provided by the authorities.  
Table 3.31 Industrial design applications filed and granted, 2009 -2015  
Year National industrial design   
Via Resident  Non-resident  ARIPO  
Status  Filed  Grante d Filed  Granted  Filed  Granted  
2009 40 40 2 2 26 31 
2010 30 30 0 0 20 22 
2011 15 15 2 2 32 22 
2012 10 10 2 2 120 24 
2013 26 25 5 5 190 101 
2014 22 22 1 1 123 207 
2015 30 30 5 5 83 86 
Source:  Information provided by the authorities.  
3.124.   The investigation  of industrial property offen ces may be triggered at the initiative of the 
INEA, the IPI or by stakeholders. To investigate infringements, a brigade is formed jointly by 
representatives from the IPI and the INEA; once the investigation is completed, the br igade 
submits a report to the IPI and the INEA. The INEA is responsible for applying sanctions130; it may 
order the seizure of infringing products or merchandise upon import or export, or may refer the 
matter to the Common Court. Over the review period, ther e have been 39 cases of seizures of IP -
infringing goods; detailed information on the value of these seizures was not available.131 The 
authorities reported that counterfeiting of marks is the leading cause of infringement of IPRs in 
Mozambique, concerning no tably toothpaste, soap, cooking oil and biscuits.  
3.125.   The new Industrial Property Code has made no changes to the fines applied for industrial 
property -related violations (Table 3.3 2). No fines are applied for infringements relating to utility 
models. No data was available on the value of fines applied.  
Table 3.32 IPR fines  
Infringement  Fine 
Exclusive rights 
in a patent  Fine of 89 times the minimum wage if the offender is a person and 200 times the minimum 
wage i f the offender is an enterprise  
Industrial 
designs  Fine of 33 times the minimum wage if the offender is a person and 120 times the minimum 
wage if the offender is an enterprise  
Counterfeiting, 
imitation, illegal 
and illicit use of 
marks  Fine of 120 times  the minimum wage if the offender is a person and 240 times the 
minimum wage if the offender is an enterprise  
 
Geographical 
indications  Fine of 112 times the minimum wage if the offender is a person and 224 times the 
minimum wage if the offender is an ent erprise  
Source:  Industrial Property Code.  
                                                
130 Industrial Property Code, Article 223.  
131 On an annual basis, these were: 1 (in 2009); 4 (2010); 22 (2011); 12 (2012); 1 (2013); 4 (2014); 
1 (2015); and 5 (2016).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  3.3.6.2   Copyright and related rights  
3.126.   Copyright and neighbouring rights are the responsibility of the Ministry of Culture and 
Tourism. The National Institute of Books and Records (INLD) is responsible for copyright issues as 
they relate to music, books and crafts. The INLD is a division of the Ministry of Culture and 
Tourism. Its mission includes helping authors to reduce the high level of piracy for music, 
promoting protection for crafts, advising on copyright policy and i mproving the legal framework, as 
needed. Implementation of the rights of authors is mainly carried out by the Assoçiacão 
Moçambicana de Autores (SOMAS).  
3.127.   There have been no changes to the copyright legislation since its adoption in 2001.132 As 
noted in Mozam bique's previous Review, it covers literary, artistic and scientific works; computer 
programs are explicitly identified as literary works. Copyright protection covers the life of the 
author plus 70 years (in the event of joint ownership, the term is 70 yea rs after the death of the 
last surviving author). A term of 50 years applies for performers' rights and sound recordings, and 
25 years for broadcast programmes. The onus is on the injured party or his legal representative to 
institute legal proceedings in defence of infringed rights. Information was not available on the 
enforcement of copyright protection and penalties for copyright infringement.  
3.3.6.3   Plant varieties  
3.128.   As reported in Mozambique's previous Review, a protocol on plant variety protection has 
been app roved at the regional level and a regional catalogue of new plant varieties has been 
developed, with the aim of facilitating the movement of new varieties of plants in the region. 
According to the authorities, these are based on UPOV standards.133 In 2014, t he Council of 
Ministers approved a regulation on plant variety protection (Decree No. 26/2014 of 28 May 
2014).134 This establishes rules and requirements to be met for all species of plants, and specifies 
that the protection of plant breeders' rights is vali d in the country and in all countries with which 
Mozambique has established bilateral and multilateral agreements on the subject. In addition, it 
defines the composition, duties and powers of the Registration Authority which is, inter alia,  
responsible for  registering plant breeders, granting and cancelling rights; levying inspection fees; 
issuing penalties for illegal activities; and hearing appeals.  
3.3.6.4   Traditional medicine  
3.129.   As reported by the authorities, close to 20 million Mozambicans (almost 75% of the 
population) use traditional medicine, particularly in rural areas where there are few health 
facilities. The authorities indicated that, since the 1970s, more attention has been given by the 
Government to undertaking research in the area of traditional medic ine; a medical research office 
was established within the Ministry of Health to collect plant specimens used by traditional 
medicine practitioners, the pathologies treated by practitioners using these plants, and the 
methodologies used. However, little pro gress was made due to resource constraints. In 1990, the 
Association of Traditional Medics of Mozambique (AMETRAMO) was established which, according to 
the authorities, has an important role to play in promoting the proper use of traditional medicine. 
The Government also adopted a resolution on traditional medicine policy in 2004 and incorporated 
recommendations into its 2000 -2004 Five -Year Plan to continue research into traditional medicine 
with a view to its safer use by citizens.135  
                                                
132 The Copyright Law (Law No. 4/2001 of 27 February 2001) was viewed at: 
http://www.wipo.int/wipolex/en/details.jsp?id=3145 . 
133 WTO document WT/TPR/M/209/Add.1, 8 July 2009 ; and IP watch online information. Viewed at: 
http://www.ip -watch.org/2014/04/15/upov -approves -aripo-draft-legislation -spreading -plant-variety -
protection -to-africa .  
134 At the same time, the previous regulation (De cree No. 158/2006 of 26 December 2006) was 
revoked.  
135 Traditional Medicine Policy, Resolution of the Council of Ministers No. 11/2004.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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4  TRADE POLICIES AND PRACTICES BY SECTOR  
4.1  Introduction  
4.1.  In 2014, tertiary activities contributed to 54% of GDP, the secondary sector (manufacturing, 
utilities, and construction) 16%, and the primary sector (agriculture, fishing, mining and 
quarrying) 29% (Table 4.1).  
Table 4.1 GDP by economic activity at current basic prices (% of GDP), 2009 and 2014  
 2009  2014  
Agriculture including livestock, hunting, forestry and fisheries  30.1 25.5 
Mining and quarrying  1.6 3.9 
Manufacturing  11.9 10.0 
Electricity, gas and water  3.5 3.9 
Construction  2.0 2.3 
Commerce and vehicle repair  10.0 12.3 
Transport, storage and communication  10.0 9.7 
Hotels and restaurants  2.6 2.3 
Information and communication  4.1 3.6 
Financial activities  3.3 5.0 
Real estate and location services  7.8 6.5 
Public administration, defence, and obligatory social insurance  4.9 6.1 
Education  7.2 8.4 
Health and social work  1.7 2.1 
Other collective service activities  1.0 0.8 
Financial intermediation services indirectly me asured  -1.6 -2.3 
Source:  Information provided by the authorities of Mozambique; and Instituto Na cional de Estatistica . 
4.2.  Agriculture accounts for a quarter of GDP and is a driver of Mozambique's robust growth. 
However, the sector is dominated by low -product ivity subsistence farming which is in need of new 
technology and investment. The country still imports a significant share of its food, mainly rice to 
supply urban centres. Agricultural export trade has grown steadily, encouraged by a liberalized 
trade reg ime. Although cash crops, including sugar cane, tobacco, cotton and cashew, account for 
a small proportion of total area cultivated, they represent the majority of agricultural exports. 
Government intervention in these subsectors remains significant.  
4.3.  Despi te growing activity, extractive industries represented only 3.9% of GDP in 2014, with 
most investment still geared towards exploration. Mining in Mozambique plays a significant role in 
the world's production of coal, gold, graphite and limonite, with massi ve coal reserves in Tete 
Province. Large reserves of natural gas were discovered in the Rovuma Basin in 2012. Currently, 
most of Mozambique's mining and mineral processing operations are privately owned, including 
cement plants, aluminium smelters and gas processing plants. Mining and the gas/oil industry are 
at an early stage of development, but based on known gas and mining resources, the extractives 
sector should play a significant role in the national economy for years to come.  
4.4.  Manufacturing, which acco unts for 10% of GDP, is dominated by the Mozal aluminium 
smelting plant, while the rest of the sector has significantly under -performed over the last decade. 
Mozal contributed 48% of Mozambique's industrial output and further represents 75% of 
manufacturin g exports, 60% of all exports and 42% of the country's export revenue.  
4.5.  In addition to expanding financial services, the tertiary sector has a growing number of 
micro -scale retail businesses with small profit margins and few opportunities for saving and 
investing. The significant importation of business services is suggestive of deficiencies in the local 
market for these skills. Such imports are necessary for a country to be a competitive exporter of 
goods.  
4.6.  Mozambique has significant potential in tourism ba sed on its range of beach holiday products, 
ecotourism, cultural diversity, and extensive coastline. The Government has made tourism a 
development priority since 2000. The relevance of tourism to economic growth and poverty 
reduction is also acknowledged b y the Strategic Plan for the Tourism Sector, 2004 -2014.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.7.  There has been a significant level of liberalization in the Mozambican banking services 
market, but this level of openness has not translated into increased affordability and availability of 
banking p roducts. Access to finance remains an obstacle to improving Mozambique's investment 
climate. Cross -border acceptance of deposits and lending by banks are allowed, but lending is 
subject to restrictions on the period, size, and interest rate of the loan. Fi nancial services is both a 
key sector in services trade and a necessary prerequisite for foreign direct investment in other 
goods and services sectors. Countries in which the financial sector is not well regulated or rather 
small – including Mozambique – operate at a disadvantage in attracting foreign economic partners.  
4.8.  Despite sustained public investments, infrastructure continues to be deficient in meeting 
basic needs such as access to networked electricity, roads, sanitation, and telecommunication and 
Internet services. The telecommunications sector represents a bottleneck to productive activities, 
hindering private sector development due to  the high price of access to international bandwidth; 
disagreements on interconnection fees and facilities sharing; a cumbersome and unwieldy licensing 
regime; and the low quality of service in some subsector s. These restrictions explain in large part 
the regulatory reform proposed by the Government in its 2013 -2017 telecommunications strategy 
and the new legal framewor k. 
4.2  Agriculture and Fisheries  
4.9.  Agriculture remains the core economic activity for most Mozambicans, with an estimated 
86% of people depending on agriculture as their primary means of subsistence. The Government 
views agriculture as the main vehicle to combat  poverty. The contribution of agriculture to GDP 
was an estimated 25.5% in 2015 and the contribution of agro -commodities to overall exports was 
22.7% in the same year. The largest employers are the sugar estates and commercial farms.  
4.10.   The Strategic Plan for  Agricultural Development (PEDSA – Plano Estratégico para o 
Desenvolvimento do Sector da Agricultura ) is a long -term (2010 -2019) plan developed to 
harmonize strategies across  different agricultural subsector s, including land, forests and wildlife, 
livestoc k, research, extension, the Green Revolution, and irrigation. The plan recognizes that the 
country's export potential remains largely untapped, and that there is a need to position 
Mozambique in the agro -commodities export business.  
4.11.   Mozambique aims to comm ercialize agriculture, shifting production away from mainly 
subsistence activities and promoting access to international markets. Raising productivity is among 
the key policy objectives in this sector, as this would contribute to poverty reduction and to t he 
attainment of food security. Government policies in this regard include expanding the provision of 
extension services, and supplying kits (seed, fertilizer, and equipment) on credit to cereal and 
groundnut farmers in high -potential growth areas of the c ountry, as well as the establishment of 
service centres with mechanization services.  
4.2.1   Agricultural production  
4.12.   Of Mozambique's total land area, 62% (or 49 million hectares ) is suitable for agriculture, 
but only 16% of the 36 million hectares of arable land i s estimated to be cultivated and only 3% is 
estimated to be irrigated. Production of food staples is dominated by smallholders, with an average 
of 1.2 hectares of cultivated land. The use of credit and inputs is still low, leading to relatively low 
yields by regional standards.  
4.13.   The main food crops grown by small farmers, mainly for household consumption, are: 
maize, sorghum, rice, common beans, groundnuts, cowpeas and pigeon peas. The main cash crops 
produced in the country are cashews,  cotton, sugar, tea, vegetables and fruits, and tobacco 
(Table  4.2). These cash crops, along with oilseeds, tea, citrus, and horticultural crops (particularly 
tomatoes), offer alternative sources of income to the small farmers in inland districts. Government 
intervention remai ns in place in the main subsectors: cashews, cotton and sugar.1 
                                                
 1 African Development Bank Group  (2011) , Republic of Mozambique Country Strategy Paper 2011 -2015, 
p.6. Viewed at:  http://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy -Documents/Mozambique%20 -
%202011 -15%20CSP.pdf .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table 4.2 Agricultural production, 2010 -2014  
(thousands of tons ) 
Cultures  2010  2011  2012  2013  2014  
Raw cotton  41 71 184 67 97 
Cashew nuts  97 113 65 83 63 
Sugar cane  2,729  3,396  3,394  3,166  3,620  
Tea (green leaf)  29 27 22 25 29 
Citrus  32 36 49 52 53 
Coconut  34 36 33 36 19 
Tobacco  67 72 54 76 91 
Sunflower  14 20 7 7 8 
Source:  Ministry of Agriculture and Food Security , Economics Directorate St atistical Yearbook 2014 – 
Mozambique , p. 55.  
4.14.   Food habits have changed in Mozambique. As the country develops, demand is increasing 
for cereals (rice and wheat) and milk products, which are mainly imported. Spending on food 
accounts for a substantial share of low -income household expenditures, hence any increase in the 
price of food has a substantial impact on levels of poverty.  
4.2.2   Institutional framework  
4.15.   The institutions in charge of agricultural activities are: the Ministry of Agriculture and Food 
Security; t he Cotton Institute of Mozambique (IAM); the National Cashew Institute (INCAJU); the 
National Institute for Agrarian Research (IIAM); and the Centre for the Promotion of Agriculture 
(CEPAGRI), which promotes investment in export -oriented agri -business. The IAM and the Ministry 
of Agriculture and Food Security regulate minimum purchasing prices for growers of cotton and 
tobacco, respectively, while the Centre for the Promotion of Agriculture (CEPAGRI) sets a monthly 
minimum domestic price for sugar, and INCA JU sets an "indicative" export price for raw cashew 
nuts. 
4.2.3   Agricultural trade policy  
4.16.   Agriculture remains the most protected sector, with an average tariff of 12.4%. The highest 
average tariffs are applied to basic food products such as meat, fish, fruits an d vegetables. Several 
products have a maximum import duty of 20% (including piri -piri, cashew nuts, ground nuts, 
pineapple, goat meat, oranges and tomatoes), are generally subject to VAT of 17%, and , under 
the SADC regional trade regime , face zero import d uty.   
4.17.   Imports into Mozambique are subject to sanitary and phytosanitary controls at the border, 
which the authorities claim are in accordance with international recommendations. Additional 
registration requirements apply to importers of pesticides, medici nal products and seeds. 
According to the Phytosanitary Inspection and Plant Quarantine Regulation (Decree No. 5/2009), 
all plants and plant products imported should be authorized by the Mozambique Phytosanitary 
Authority and must be accompanied by a phytos anitary import permit and a phytosanitary 
certificate.  
4.18.   The export of seed cotton is prohibited in principle. Cotton fuzzy seeds are sold to domestic 
oil expelling industries. However, when the domestic market is not buying all cotton seed, the 
surplus can  exceptionally be exported after being authorized by the IAM. Mozambique imposes an 
export tax of 18% of the f.o.b. customs value on raw cashews ( Section  3.2.2).  
4.2.3.1   Sugar  
4.19.   Sugar is the second -largest agricultural import item, after cereals. The Government has  
undertaken significant efforts to revitalize the production of raw sugar, including the extension of 
import protection via tariffs. The initial aim of the Government in rehabilitating the sector was to 
create rural employment and revitalize industry. In o rder to achieve this, it provided a number of 
concessions including a VAT exemption, and subsequently established a reference price, which is 
continually revised (Section 3.1.4.2.1).  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.20.   The Mozambican sugar industry operates a central selling desk. The aim of  the operation is : 
to optimize the costs of moving sugar to both the domestic and export markets; to remove the 
excessive surplus efficiently; to provide finance to sugar producers at economical levels; and to 
offer the consumers the benefit of universal p ricing irrespective of their physical distance from the 
mills. As Mozambique does not have sufficient processing capacity, sugar companies export raw 
sugar to South Africa and import the processed sugar, paying the surtax on the value of the 
processed impo rts net of the value of raw sugar exports. Such imports are exempt from VAT.  
4.2.4   Fisheries  
4.21.   Mozambique has significant potential in fisheries products, but the sector also faces 
challenges. The emphasis of the Government's fisheries policy has shifted from expo rts to 
production for the domestic market through promotion of artisanal fisheries and aquaculture, while 
also taking measures to contain overexploitation. There are major challenges to the building or 
re-building of fisheries infrastructures, namely ports , landing sites, markets, and centres for 
experimentation and education dedicated to aquaculture. In addition, the integration of offshore 
tuna fishing into the national economy continues to be a major challenge in the sector.  
4.22.   Mozambique has considerable p otential for fisheries and aquaculture, due to its 2,750 km of 
coastline, and its Exclusive Economic Zone (EEZ), 200 miles off the coast, covering 586,000 km2 of 
ocean water masses. On the other hand, Mozambique has 120,000 hectares reserved for the 
practi ce of marine aquaculture, and about 16 million hectares have been identified as potential 
areas for the development of aquaculture in inland water. Mozambique classifies its fishery 
activities as industrial, semi -industrial (vessels under 20 metres in leng th), and artisanal. Artisanal 
fishing accounted for 90% of total fish production in 2015 (Table 4.3). Shrimp accounts for a 
substantial portion of export revenues earned from fishery products; certain Mozambican vessels 
and establishments meet the sanitary  requirements of the European Union , their main destination 
market.  
Table 4.3 Fish and aquaculture, 2010 -2015  
Description  Fish and aquaculture production (in %)  
 2010  2011  2012  2013  2014  2015  
Artisanal fishi ng 86.4 85.6 87.1 87.9 89.9 90.1 
Salt water fish  53.1 51.1 55.1 49.7 56.2 56.3 
Sweet water fish  20.3 28.3 25.5 30.6 27.5 26.5 
Shrimp  2.6 0.9 1.6 1.3 1.2 1.8 
Others  10.2 5.0 6.7 6.3 3.8 5.3 
Commercial fishing  13.0 13.9 10.6 11.6 9.5 9.4 
Gambas (sort o f shrimp)  0.7 0.6 0.9 0.8 0.6 0.5 
Fish 0.9 0.6 0.7 0.7 0.5 0.7 
Shrimp  3.4 2.3 1.2 1.1 1.5 1.1 
Kapenta  7.0 9.4 6.5 7.4 5.3 5.7 
Others  0.8 0.6 1.1 1.4 1.2 1.1 
Aquaculture  0.5 0.3 0.2 0.3 0.4 0.3 
Total in tons (100%)  163,399  194,352  208,977  222,822  254,345 287,720  
Source:  Boletim Estatistico das Pescas 2006 -2014; and Balanco do Plano Economico e Social 2015 . 
4.23.   The output of Mozambique's fisheries increased from 34,390 tonnes in 2000 to almost 
288,000 tonnes in 2015. This occurred despite falling demand fo r fisheries products in the EU 
market. By contrast, commercial production and exports have not grown since the turn of the 
century.  
4.24.   The Ministry of Sea, Inland Waters and Fisheries has been responsible for the Government's 
policy on fisheries and aquacult ure since 2000 (Law No. 22/2013). A licensing and fishery 
management framework was adopted in 2003, requiring fishermen obtain a fishing licence. As 
noted, commercial aquaculture is a nascent activity. The 2001 regulatory framework for 
aquaculture defines norms and requirements for aquaculture farms; establishes procedures for 
their licensing; establishes restrictions on the importation of live animals to be used in 
aquaculture; and addresses environmental issues such as the conversion of mangrove into 
aquaculture ponds.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.25.   The current institutional arrangement of the Ministry consists of two national directorates: 
the National Directorate of Economics and Fisheries Policies and the National Directorate of 
Surveillance . The Ministry operates with limited quali fied personnel and financial capacity, and 
upgrading is needed to monitor and control  fisheries and aquaculture . 
4.26.   Foreign vessels may fish in Mozambique's EEZ only under bilateral agreements. The EC and 
Mozambique first concluded an agreement for shrimp and  tuna fishing in 1998; this lapsed and 
was renewed in 2004, with a new five -year fisheries partnership agreement (FPA) taking effect in 
2007. Foreign vessels fishing under bilateral agreements in Mozambican waters also provide 
compensation to Mozambique.  
4.27.   On the import side, using the ISIC definition, the fisheries subsector enjoys relatively high 
tariff protection of 18.5%. Regarding exports, t he country enjoys a considerable market resulting 
from free access of fisheries products to the EU market under the  Everything -but-Arms 
Agreement, and the Generalized System of Preference s (GSP) scheme, as well as to the SADC 
market under the free trade area protocol. Fisheries products are also exported to Asia.  
4.28.   There are no tariff barriers in the international market  for fisheries exports, but meeting 
sanitary requirements can be a technical challenge. Since  the current laboratories are designed to 
certify only a limited number of products, Mozambique cannot diversify its fisheries products.  
4.3  Mining and Energy  
4.29.   Vast coa l reserves and significant potential for additional mineral deposits will make the 
country one of the most important growth areas in the global mining sector in the coming years. 
Coking coal output, currently at around 4.7 million tonnes per annum, is fore cast to increase 
strongly, driven by Brazil's Vale and Rio Tinto (Table 4.4.). Coal mining began in 2011 and is 
becoming a major export, although infrastructure constraints and declining coal prices may affect 
development prospects. Ultimately, natural gas  is projected to dominate the export mix toward the 
end of the current decade.  
Table 4.4 Annual production of minerals , 2010 -2015  
Products  UM 
Reserve  
Annual production  
2010  2011  2012  2013  2014  2015  
Metall ic minerals  
Gold Kg   106 111 177 90 197 241 
Tantalite  Ton   55,054  139,144  407,734  77,945  111,767  62,606  
Ilmenit e Ton   678,358  636,794  574,398  832,213  940,261  828,893    
Zircon  Ton   37,038  37,151  46,880  37,382  55,851  57,858  
Rutile Ton   201 6,455  3,713  7,845  14,828  5,981  
Non-metallic minerals  
Beryl Ton   56 57 531 103 3 312 
Graphite  Ton   0 0 0 0 0  
Quartz miscellaneous  Kg   707,411  838,683  51,749  110,721  98 580    
Bentonite gross  Ton   6,994  0 24,000  73 26,660   69,823   
Bentonite processed  Ton   458 493 846 92 739      349    
Bentonite screened  Ton   4,423  423 613 0 4,067    744    
Diatomite  Ton   123 48 541 375 77    160    
Limestone (chalk)  Ton   263,907  947,122  1,322,423  522,609  900,787   844,110  
Sands for construction  M3   1,150,051  1,678,736  2,137,612  960,239  762,644  1,943,556    
Argil (clay)  Ton   43,143  253,745  46,690  938,698  1,116,131       41,136    
Bauxite  Ton   8,556  10,351  8,632  6,190  3,324         4,984  
Rhyolite  M3   38,705  71,881  293,184  72,746  29,925     783    
Granite  M3   0 17,539  79 0 0          0     
Gravel  M3   785,611  861,648  1,007,801  1,290,446  1,700,311  2,854,365    
Ornamental rocks  
Dumortierite  Ton   27 58 58 17,000  1,067  98 
Marble slabs  M2   0 0 0 0 0 0 
Marble in blocks  M3   0 0 0 0 0 0 
Precious rocks and semi -precious rocks  
Tourmalines  Kg   2,402  50 486,468  128,352  131,340  144 
Tourmaline scraps  Kg   12,266  26,228  27,186  21,309  44,890  20,024  
Grenade  Kg   3,571  24,653  170,979  1,551  10,233  33,804  
Grenade scraps  Kg   12,783  150,274  0 0 352,529  350,158  
Marine w aters  Kg   140 0 2 0 0 0 
Marine waters scraps  Kg   1,438  60 586 0 0 0 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Products  UM 
Reserve  
Annual production  
2010  2011  2012  2013  2014  2015  
Ruby Kg   0 0 0 0 0 2,018  
Minerals fuels  
Coal (coking)  Ton 2  
B Ton          3,784,602   4,786,611    
Coal (thermal)  Ton 38,260  648,220  1,962,200  2,312,972  2,546,585  1,813,717    
Hydrocarbon  
Natural gas  GJ 277 
TCF 124,783,152  131,555,851  146,793,243  163,739,583  161,551,762  154,897,752  
Condensed gas  Bbl 328,171  396,240  408,342  416,501  298,321  457,596  
Oil   200 
Mbbl              
Note:  UM – unit of measurement  
 GJ – giga joules  
 Bbl – barrels  
 TCF – trillion cubic feet  
Source:  Mozambi can authorities.  
4.30.   Mozambique currently plays an important role in the world's supply of heavy mineral sands 
(HMS), aluminium, tantalum and rubies (Table 4.5). Most of the country's mining and mineral 
processing operations are privately owned, with the Government holding varying interests in 
these. Excluding industrial minerals and gemstones, there are roughly eight producing modern 
mines in Mozambique (five coal, one HMS, one tantalum and one graphite),  at least 20 advanced 
exploration projects, some of which are nearing development, and numerous artisanal mining 
communities. In addition, the development of the natural gas sector has the potential to transform 
the Mozambi can energy sector and stimulate f urther economic growth and development.  
Table 4.5 Annual exports  of mineral products , 2010 -2015  
Products   Annual exports  
U.M. 2010  2011  2012  2013  2014  2015  
Mineral resources  
Gold Kg 5 1 0 0 0 0 
Tantalite  Kg 23,535  48,120  223,987  11,290  516 49,106  
Ilmenit e Kg 648,307  438,903  522,947  498,038  514,697  588,308  
Zircon  Ton 60,763  23,796  44,069  24,532  23,771  47,515  
Rutile Ton 3,800  0 0 3,347  1,396  4,970  
Beryl Ton 11 0 0 0 0 35,360  
Graphite  Ton 0 0 0 0 0 0 
Quartz miscellaneous  Ton 662,302  171,783  0 81,100  0 0 
Bentonite processed  M2 174 295 210 47 40 40 
Bentonite screened  Ton 3,868  0 0 80 0 0 
Diatomite  Ton 80 50 0 0 0 0 
Bauxite  Ton 5,265  2,582  4,656  0 3,122  2,960  
Dumortierite  Kg 0 33 22 0 120 50 
Marble sl abs M2 0 225,144  0 0 0 0 
Tourmalines  Kg 149 750 0 14,000  20 0 
Grenade  Kg 295 440 0 0 0 0 
Grenade scraps  Ton 61,482  182 5 0 0 0 
Marine waters  Ton 37 0 0 0 0 0 
Ruby Kg 0 0 0 0 0 181 
Coal ( coking)  Ton 8,120  0 2,383,446  3,500,262  3,633,078  4,059,877  
Coal (thermal)  Ton    161,843  125,019  364,259  1,045,727  748,669  
Natural gas  GJ 87,185,626  93,832,068  140,016,172  143,000,000  152,250,801  154,897,752  
Condensed gas  Bbl 304,352  307,502  407,053  415,658  298,321  457,596  
Note:  UM  - unit of measurement  
 GJ   – giga joules  
 Bbl   – barrels  
 TCF  – trillion cubic feet  
Source:  Mozambi can authorities.  
4.31.   The Government recognizes the need to ensure sustainable and transparent management of 
the environment and natural resources. The authorities subscribed to the Extract ive Industries 
Transparency Initiative (EITI) on 19 May 2009 and are strengthening the legal framework for the WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  natural resources sector.2 For example, all major mining and gas contracts have been made public 
in Mozambique, and disclosure requirements are b eing reinforced by the new mining and 
petroleum laws recently approved by the National Assembly.   
4.3.1   Mining  
4.32.   Mozambique has commercially important deposits of coal (high quality coking coal and 
thermal coal), iron ore, titanium ore, apatite, graphite, marble,  bentonite, bauxite, kaolin, copper, 
gold, and tantalite. The country's mineral potential is largely untapped. Gold deposits have 
attracted domestic and international investor interest in recent years. Artisan gold mining began 
centuries ago and continues to attract small prospectors (many of them Tanzanian). Extensive 
exploration will be necessary to uncover the country's full resource potential. Other key 
commodities such as ilmenite, rutile, zirconium and beryllium are also mined in the country. 
Producti on and export data are summarized in Tables 4.4 and 4.5.  
4.3.1.1   Mining: legal and institutional framework  
4.33.   During the review period, Mozambique's mining sector, in particular its substantial 
unexploited coal deposits in the central province of Tete, has attracted significant attention from 
international mining companies. Recognizing this potential, the Mozambique Parliament approved 
a new Mining Law (Law No. 20/2014 of 18 August 2014), repealing the previous Mining Law (Law 
No. 14/2002).  
4.34.   The new Mining Law3 appears  to follow the trend set by other recent Mozambican legislation 
(such as the Mega Projects Law and the new Petroleum Law) pursuant to which the Government is 
seeking to make the terms under which mining activities are conducted on a more beneficial basis 
for Mozambique and its people. The new Mining Law focuses on reforming the way in which mining 
operators conduct their activities. For example, it sets out local content requirements for the 
procurement of relevant goods and services designed to promote the  development of local 
businesses and know -how. There is also the requirement that all holders of mining concessions be 
listed on the Mozambican Stock Exchange and, if economically viable, that any processing 
activities related to mineral produced in Mozamb ique must be undertaken in Mozambique.  
4.35.   In October 2015, the Government approved the implementing regulations, which inter alia, 
expand on types of licen ces (exploration, processing, construction, reserved area, etc.), specifying 
terms and conditions for ea ch type. Certain matters still require clarification, such as the 
institutional set up, function and authority of inspectors, and definition of local content.  
4.36.   The new Law does not affect the tax and fiscal incentives regime applicable to mining 
operations , which has been reformed separately pursuant to a new Mining Tax Law (Law 
No. 28/2015 of 28 December 2015) which entered into force in 2015. The new Law is applicable to 
all companies conducting mining activities within the territory of Mozambique. It pro vides for a 
number of taxes, including a new tax on resource rent, a surface tax and a mining production tax. 
Liability for the latter tax arises when the mineral is extracted. The applicable rates are: 8% for 
diamonds, 6% for precious and semi -precious st ones or metals and heavy sands, 3% for base 
metals, coal and ornamental rocks, and 1.5% for sand and rock; a tax reduction of 50% is allowed 
when the production of minerals is to be used by local industry.  
4.37.   Several key bodies are currently responsible for r egulating mining activities, namely:  
 The Council of Ministers, the highest government body in Mozambique, is responsible for 
creating primary legislation and for granting concessions and mining licen ces. 
 The Ministry of Mineral Resources and Energy ( Minist ério dos Recursos Minerais e Energia – 
MIREME) governs the sector and develops and implements policies relating to the 
exploration and production of mineral resources including minerals and metals . It also  
                                                
2 African Development Bank Group  (2011) , Republic of Mozambique Country Strategy Paper 2011 -2015, 
pp. 4 and 6. Viewed at: http://www.afdb.org/fileadmin/uploads/afdb/Docum ents/Policy -
Documents/Mozambique%20 -%202011 -15%20CSP.pdf .  
3 The text of the new Mining Law can be viewed at: 
http://www.eisourcebook.org/cms/February%2020 16/Mozambique%20Mining%20Law%202014.pdf .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  oversees the National Directorate of Geology and M ines ( Direcção Nacional de Geologia 
Minas - NDGM ), which was established to manage and oversee the mining sector, and is 
responsible, inter alia,  for developing public policy and regulating new mining projects . 
 The National Institute of Mines ( Instituto Na cional de Minas – INM) is the new regulatory 
body established by the new Mining Law to regulate mining activities, and its primary 
responsibilities include: reviewing, analysing and approving mining projects, including 
carrying out technical and economic s tudies for the opening of new mines, in addition to 
decommissioning and/or closing mines; minimizing the social and environmental impacts of 
mining projects; publishing guidelines on public and private sector participation in the 
mining sector; and proposi ng new policies to the MIREME regarding the development of the 
mining sector . 
 The Mineral Resources General Inspection Body is responsible for overseeing compliance 
with the new Mining  Law and any other legislation, regulations and national standards 
gover ning mining activities.  
 In addition, the new Mining Law provides that a new authority, the High Authority for the 
Extractive Industry ( Alta Autoridade da Indústria Extractiva ), is to be created to oversee the 
extractive industry, although the new Mining L aw is silent as to the powers and role of this 
High Authority. In particular, it is uncertain as to whether the new Authority will be 
regulatory in nature or will take the role of ombudsman and/or whether its role will conflict 
or overlap with the NDGM and /or the Mineral Resources General Inspection Body.  
4.3.1.2   Incentives  
4.38.   The Government provides incentives for investments in the mining sector. The following are 
the various specific incentives which can be provided to mining companies by request: (i) the 
importati on of certain equipment related to prospecting, research and mining exploration is 
exempt from customs duties over the first five years; (ii) this exemption is extended to VAT 
(including VAT of internal acquisitions) and to specific consumption tax; and (iii) the acquisition of 
services by the mining sector relating to drilling, exploration and construction of infrastructures – 
during the exploration and development phases – is now exempt from VAT.  
4.3.2   Energy sector  
4.39.   Mozambique has high coal, gas and hydropower potential but lacks the capacity to fully 
exploit th ese resources and provide the population with reliable electricity. Some progress has 
been made with electricity access; the electrification rate has increased from approximately 7% of 
the population in 2 005 to about 26% in 2014; around 2 million Mozambicans are being supplied 
through photovoltaic systems. On average, new connections per year have exceeded 140,000 in 
the last three years, mainly driven by World Bank funding and other donor support. However , the 
majority of the Mozambican population (about 65%) still lacks access to electricity, and biomass 
continues to be the mainstay of household energy use primarily for cooking. Mozambique exports 
35% of its total power production, mostly to South Africa and Zimbabwe. The Mozal aluminium 
smelter plant accounts for 60% of the current consumption and 100% of imports.  
4.40.   Mozambique has considerable hydropower potential. Currently, 85% of the electricity 
produced in the country comes from hydropower sources follo wed by thermal sources (15%), 
including natural gas power plants and diesel. The company Hidroelectrica de Cahora Bassa  (HCB) 
operates the Cahora Bassa Dam, the second largest dam in Africa, sells 75% of its existing 
generation to South Africa,  and uses So uth African transmission lines to re -import.  
4.41.   Coal production and exports have already begun and are expected to increase from 5 million 
tonnes in 2012 to 22 million tonnes by 2017 as necessary infrastructure projects (including the 
construction and rehabil itation of a second rail line through Malawi by Vale) are completed. The 
value -added share of the coal and LNG sectors is projected to reach about 20% of GDP by 2023, 
far exceeding the share of existing megaprojects (5%). Over the next 10 years, coal and L NG are 
likely to contribute 2 percentage points per year to the expected 8% GDP growth. Although 
government revenue from megaprojects will be small over the medium term, it is projected to 
reach about 25% of total fiscal revenue in the longer term, largely  from the LNG sector. Following WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  the publication of Mozambique's Master Gas Plan in late 2012, the Mozambican Government has 
been actively seeking investors to use natural gas for domestic use, including in industr ies such as 
fertilizer and gas -to-liquid pr oducts, power production, and household use.  
4.42.   Regarding the legislative and institutional framework, the Government approved a new 
Petroleum Law (Law No. 21/2014 of 18 August 2014), which seeks to guarantee that the proceeds 
from operating the newly discove red natural gas reserves will benefit the local economy and 
population. The new Law includes, inter alia , the following regulations: any oil and gas consortium 
will require the participation of the Hydrocarbon National Company (ENH), which is the exclusive  
representative of the State in the oil and gas business; national companies in the sector must be 
registered on the Mozambican Stock Exchange and are obligated to hold public auctions for 
contracts on goods and services and give preference to local compan ies under certain conditions 
while a percentage of their royalties is required to be channelled towards the improvement of the 
community in which the project is developed; and that 25% of all LNG production must be directed 
towards the domestic market.  
4.43.   The Ministry of Mineral Resources and Energy and its independent regulatory agency, the 
National Petroleum Institute (INP), manage the considerable upstream oil and gas exploration and 
production activities in Mozambique, both onshore and offshore. The INP, as a regulatory entity, 
is, inter alia, responsible for:  the administration and promotion of oil operations; the setting of 
guidelines for public and private sector participation; the regulation and supervision of research, 
production and transportation o f petroleum; and also for mediation, conciliation and arbitration in 
accordance with the agreement of the parties and the legislation in force. The Government 
conducted a bidding round in July 2005 for the exploration of several offshore blocks in an area 
known geologically as the Rovuma Basin, named after the Rovuma River that forms Mozambique's 
northern boundary with Tanzania.  
4.44.   Specific performance requirements are built into mining concessions and management 
contracts, and sometimes into the sale contract s of privatized entities. Investments involving 
partnerships with the Government usually include milestones that must be met for the investor's 
project to continue. The Government generally does not require investors to purchase from local 
sources nor does  it require that technology or proprietary business information be transferred to a 
local company. However, the draft regulations for new mining and petroleum laws might oblige 
investors to give preference to purchasing from local sources available in Moza mbique which are of 
an internationally comparable quality and which are offered at competitive prices in terms of 
delivery. The Government of Mozambique intends to codify local content requirements.  
4.4  Manufacturing Sector  
4.45.   The Government considers the industr y to be one of the determining factors in its efforts to 
attain  poverty reduction and economic development. The main strategic objectives for the 
development of the sector are increasing production and productivity, promoting industrialization 
oriented tow ards modernizing the economy and increasing exports, the promotion of employment, 
value chain promotion of national primary products, ensuring incorporation of local content , and 
improving the business environment.  
4.46.   The Government's Industrial Policy and St rategy (approved by Resolution No. 23/2016) sets 
the broad guidelines of industrial development in the country, defining the food industry, furniture, 
building materials and tools, collection and recycling of industrial waste, engineering and 
electronics a s priority sectors  (Section 2.2) .4  
4.47.   Furthermore , the National Development Strategy (2015 -2035) seeks to promote 
industrialization, based on four pillars: (a) development of human capital; (b) development of 
infrastructure to support the industry; (c) resea rch, innovation and technical development; and (d) 
institutional articulation and coordination. This document defines strategies for the development of 
priority areas, including  the revitalization and expansion of the manufacturing  sector  and 
development o f value chains in the mining industry. The development of value chains in the 
extractive industry , in view of export diversification and recalibrating the economy away from its 
dependence on commodity trade , constitutes a major challenge for Mozambique, pa rticularly in 
coal, gas, iron and heavy mineral sands.  
                                                
4 See Section  2 of this report, para graph  2.13.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.4.1   Incentives  
4.48.   The Government provides tax benefits to industries located and operating in the country. 
The tax benefits are regulated by Law No. 4/2009 relating to the Code of Fiscal Benefits 
(paragraphs  3.79-3.81) and by the Ministerial Decree No. 99/2003 of the Customs Regime 
Regulation for Manufacturing.  
4.49.   Ministerial Decree No. 99/2003 grants the manufacturing industry exemption from customs 
duties on the import of materials used in the industrial produ ction process. This benefit is provided 
to companies that demonstrate and commit to maintaining an annual turnover of not less than 
Mt 3 million in the agro -industry, food industry, textile, clothing and footwear, metal -mechanical 
industry, graphic industr y, chemical industry, and plastic and rubber  industry . Tax benefits will be 
granted to companies whose added value to the final product corresponds to a minimum of 20%.  
4.50.   The Government considers the use of tariffs as one of the means to generate tax revenue , 
as well as to develop industrial policies when deemed necessary, and for job creation. Generally, 
tariff protection in the manufacturing sector has not changed significantly from 2010 to 2016. It 
ranges from 0% to 20%, depending on the activity. Apart fr om customs duties, imported 
manufactured goods which compete with products manufactured locally are subject to surcharges, 
as in the case of sugar, cement, and certain galvanized steel products. The protective tariffs and 
surcharges are regulated by Law No . 6/2009.  
4.51.   Mozambique's large export -oriented investment projects of recent years operate as 
Industrial Free Zones.5 Mozal, a joint venture of several international companies, is the second -
largest aluminium producer in Africa and operates as a free -trade z one. Aluminium production is 
one of the most important revenue generators for Mozambique. The Mozal aluminium smelter, 
operated by BHP Billiton, is one of the largest in Africa. In 2012, Mozambique produced 550  metric 
tonnes (MT) of aluminium.  
4.52.   Other relati vely successful industries produced food and beverages for the domestic market, 
and tobacco and sugar, mainly for the export market. Besides these commodities, industrial 
policies have generally failed to promote manufacturing expansion as a proportion of the GDP.  
4.5  Services Sector  
4.53.   The services sector is generally smaller in developing countries (and especially LDCs) than it 
is in more developed countries, but it is no less important for their development. The p roduction 
and export of almost all types of good s depend critically on access to services at world -class levels 
of price and quality. While Mozambique has some capacity to provide such services domestically, 
this is an area where the interests of the economy as a whole may be best served if, while the 
country is still developing its capacities in this area, the market were more welcoming to foreign 
providers.  
4.54.   Mozambique is characterized by a limited fixed telecoms network and a relatively strong 
mobile network. The fixed network, with 81,000 subscribers or just 0.3 fixed -telephone 
subscribers per 100 inhabitants, has been unable to compete against mobile providers, struggling 
with poor infrastructure due to a prolonged period of under -maintenance and insufficient 
investment. The mobile segment has been mo re successful, expanding from 436,000 subscribers 
in 2003 to an estimated 18 million subscribers in 2015.  
4.55.   The telecommunications sector continues to be a bottleneck to the productive activities of 
both domestic businesses and foreign investors. It can hin der private sector development due to  
the high price of access to international bandwidth; disagreements on interconnection fees and 
facilities sharing; a cumbersome and unwieldy licensing regime; and the low quality of service in 
some subsector s. These re strictions explain in large part the regulatory reform proposed by the 
Government in its 2013 -2017 telecommunications strategy and the proposal for a revised legal 
framework. The strategy lays out the vision for the telecommunications sector and sets strat egic 
goals and a number of areas for priority action. These include the simplification of the licensing 
                                                
5 See Section 3.3.1.1 on SEZ and IFZ regions.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  regime, the liberalization of services and networks, the reorganization of the state -owned 
telecommunications enterprises, and the improvement of the le gal framework.  
4.56.   Replacing the old telecommunications law of 2004, the new Telecommunications Law (Law 
No. 4/2016), which entered into force in June 2016, addresses some of the sector's challenges and 
technological changes, including: unified licensing, enha ncing competition, assuring network 
interoperability and interconnection, and promoting infrastructure investment and sharing, quality 
and affordability of service. The aim of this Law is to stimulate competition in the 
telecommunications market, improve i ts functioning, and ensure the protection of basic rights of 
consumers.  
4.57.   During the review period, several regulations were also approved in order to encourage and 
promote more investment and to ensure the highest standards and the required efficiency for 
better provision of services, namely: Regulation on Equipment and Radio Telecommunications 
(Decree No.  37/2009); Regulation on Sharing Infrastructure (Decree No. 62/2010); Regulation on 
Quality of Service (Decree No.  6/2011); Regulation on Traffic Control  (Decree No. 75/2014); 
Regulation on SIM Card Mobile Phone Registration (Decree No. 18/2015 ). 
4.58.   Mozambique's telecommunications market is segmented into the fixed -line and mobile 
telephony services markets. The mobile market has been liberalized since 2001, while the fixed 
market was liberalized in 2007. The de facto  monopoly operator in the fixed -line segment is the 
state-owned company Telecomunicaçoes De Moçambique  (TDM), while three companies 
(Mozambique Cellular or Mcel, Vodacom Mozambique (part of South African cellular provider 
Vodacom) and Movitel (backed by Viettel Group, Vietnam's largest mobile network operator)) 
dispute the mobile market.  
4.59.   In addition, there are 18 data transmission and Internet operators, and 10 Internet service 
providers (ISPs) tha t resell TDM's Internet access products. There are also an estimated 
29 internet service providers6 as well as two international undersea cable operators. The Internet 
is available in cities and is largely unregulated, with ISP providers able to bring in t heir own 
bandwidth. There is significant room for growth in this sector; the ITU estimated that in 2011 
there were only 0.07 fixed Internet subscribers for every 100 Mozambicans.  
4.60.   Mozambique's Telecommunications Law and regulations reflect the principles c ontained in 
the WTO's Reference Paper on Basic Telecommunications. For example, Decree No. 34/2001 
explicitly recognizes and adopts the principles in the Reference Paper in relation to 
inter-connection; and the Telecommunications Law of 2016 prohibits anti -competitive behaviour 
and establishes that the National Communications Institute of Mozambique ( Instituto Nacional das 
Comunicações de Moçambique  (INCM)), the regulatory authority, is autonomous legally, 
financially, and administratively. The INCM's  main responsibilities are: licensing, spectrum 
management, numbering, and the regulation of tariffs and quality. It is an autonomous entity 
under the administrative supervision of the Ministry of Transportation and Communications.  
4.61.   Although fixed -line telephony was liberalized from 2007, the market for the provision of 
these services is closed as a result of an exclusive licence granted to the TDM monopoly (which is 
80% state -owned) until 2028. In addition, the market is reserved for public investment. TDM's 
exclusivity relates to the provision of fixed -line telecommunications network services (telephone 
lines), customer premises equipment, and local and long -distance (national and international) 
calls. There is clearly a correlation between the market structure a nd the slow growth rates being 
experienced in these services. The fixed operator has struggled to compete against the mobile 
operators, whose growing competitiveness has induced people and companies to give up their 
fixed telecoms services.  
4.62.   Liberalization efforts appear to have been focused on encouraging service provision through 
the establishment of commercial presence. While the current Telecommunications Law aims to 
create a framework for the liberalization of the industry and provide a transitory regim e for the 
                                                
6 However, not all licensed ISP operators are currently active and it is unclear how many of them are. Of 
the active I SPs, the majority are based in Maputo and their services are mainly directed towards the corporate 
segment. The country's limited fixed infrastructure creates favourable conditions for ISP s. Through the use of 
wireless technologies, these providers act as substitutes for the fixed network in areas outside its coverage.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  elimination of the TDM monopoly, the company's current licen ce seems to preserve its privileged 
position until 2028.  
4.63.   The mobile market is the most successful segment in Mozambique, fuelled by the limited 
fixed infrastructure and the lower investm ent needed to expand its coverage and deploy new 
services. It is composed of three operators: Mcel, founded in 1997, Vodacom, which started 
operating in 2003, and Movitel in 2012.  
4.64.   With respect to Mozambique's mobile telecommunications subsector , for entry into the 
market through the acquisition of an existing firm, the foreign ownership limit is decided by the 
Ministry of Finance on a case -by-case basis . In addition, the number of licen ces may be limited 
since the regulatory authority decides when to issue a licen ce. Other limitations include the 
requirement of authorization from the Ministry of Labour and a labour market test before foreign 
employees can be hired, and the  requirement of  approval of the Investment Promotion Centre and 
registration with the C entral Bank for the repatriation of earnings.  
4.5.1   Financial services  
4.65.   Financial access has increased significantly over the last decade. The number of bank 
branches rose from 228 in 2005 to 572 in 2014 and the credit -to-GDP ratio rose from 13.2% to 
30% (Table 4 .6). The share of the adult population that has a bank account increased to 20% in 
2014 and the share of adults financially excluded dropped to 60% in the same year.  
4.66.   However, restricted financial access still limits the sector's ability to mobilize resourc es. The 
financial sector is underdeveloped and still bank -dominated. Capital and financial markets are 
weak and mostly concentrated in Maputo.  
4.67.   The banking sector7 remains concentrated, uncompetitive and highly focused on upper 
levels of the market, althoug h there is an increasing geographic coverage. By end -2014, the sector 
consisted of 18 banks, 18 microbanks and credit unions, 17 insurance companies, 
285 microfinance operators, and 11 social security and pension funds.  
Table 4.6 Overview of the financial sector, 2005, 2012 and 2014  
 2005  2012  2014  
Commercial banks  13 18 18 
Microbanks & credit cooperatives  5 15 18 
Microfinance operators  19 202 285 
E-Money institutions  n.a. 2 2 
Insurance companies  6 13 17 
Social security & pension funds  n.a. 5 11 
Intermediary access points     
  Bank agencies  228 529 572 
  ATMs  453 (2008)  934 1,302  
  POS n.a. 8,499  14,461  
  Districts with at least one bank agency out of 158  27 62 69 
Financial access (use of services)     
  Adults with at least one bank account (%/total)  6 20 24 
  Adults formally banked (%/total)  13 (2010)  n.a. 20 
  Adults financially excluded (%/total)  78 (2009)  n.a. 60 
Credit to economy (%/GDP)  13.2 n.a. 30 
n.a. Not available.  
Sources:  Bank of Moza mbique; FinScope Survey 2009 and 2014.  
4.68.   The registered banks are dominated by foreign -owned institutions, representing 95% of 
total financial system assets. The sector has attracted foreign investors with NedBank, EcoBank, 
Credit Suisse, and Banco BIG enter ing the market in 2015. The five largest banks, all 
foreign -owned, hold more than 80% of the system 's assets. Almost 80% of bank agencies and 
ATMs are located in urban areas, around half in Maputo.  
                                                
 7 IMF (2016),  Country Report No. 16/10: Republic of Mozambique Selected Issues , p.10. Viewed at:  
https://www.imf.org /external/pubs/ft/scr/2016/cr1610.pdf .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.69.   Mozambique scored low marks on the WEF Global Competitiven ess Index 2015 -20168 for 
financial market development because of the low availability of financial services, affordability of 
financial services, local equity financing and availability of venture capital. Just four companies are 
listed on the stock market . Overall listed securities represented just 7.2% of GDP in 2014.  
4.70.   In March 2013, the authorities adopted a Financial Sector Development Strategy 2013 -22, 
aimed at deepening financial inclusion, which includes measures to enhance competition, 
consumer prote ction and financial literacy.  
4.71.   Commercial banks are best suited for providing short -term loans, trade -related finance and 
fee-based services. Medium -term loans are available but stiff collateral requirements and high 
interest rates deter borrowing in the co mmercial sector. Domestic customers' deposits constitute 
the main funding source for the commercial banks. Incentives for banks to use the Central Bank's 
lending facility, the interbank market or foreign credit lines for liquidity appear to be limited. The  
deposit base is rather narrow and tends to be concentrated among a few large institutional clients, 
including public companies and non -bank financial institutions comprising pension funds and 
insurance companies.  
4.72.   In 2014, net bank assets reached 54.5% of GDP. The combined net assets of the six largest 
banks operating in Mozambique increased 22% year -on-year. Average return on equity was 20%, 
although this was higher for the three main banks. Non -performing loans rose by 75% from 2013, 
increasing from 2.19%  to 3.03%. Local currency denominated loans increased, accounting for 
75% of the total loan portfolio in the period, against 73% in 2013.  
4.73.   The debt market is dominated by sovereign issues. Corporate bond issues are small scale 
and mostly limited to financia l institutions and telecommunication firms. The investor base for both 
government and non -government securities is largely dominated by commercial banks, though a 
few insurance companies and investment management institutions are also active. The financial  
non-banking sector comprises two leasing companies, and one for debt factoring.  
4.5.1.1   Sector regulation  
4.74.   The relevant legislation, including regulations, comprise: the Central Bank Law (Law 
No. 1/92); the Law of Credit Institutions and Financial Companies; the B anking Act (BA – Law 
No. 15/99), with amendments introduced by Law No. 9/2004; Decree No. 56/2004 approving the 
regulation of the Law of Credit Institutions and Financial Companies; Decree No. 57/2004 
approving the regulation of microfinance; Law No. 14/20 13 (Law on AML/CFT); Law No. 6/2015 
(Law on the Credit Information Bureau); and Decree No. 6/2015 (Regulation of the Credit 
Information Bureau Law).  
4.75.   Apart from these regulatory documents, legislation also includes the following elements: 
requirements on ca pital adequacy, in accordance with Base l II, including a minimum capital 
adequacy ratio (CAR) of 8%. Since January  2014, the Central Bank has introduced: the Basel II 
framework (most of the regulatory documents have been approved or updates); guidelines on  risk 
management ; requirements on internal controls; restrictions on connected lending; limits on 
foreign exchange exposures and on fixed assets; minimum levels of provisions; large exposures 
and concentration limits; limits on foreign exchange exposures a nd on fixed assets; accounting 
and reporting; and due diligence standards.  
4.76.   There has been a significant level of liberalization in the Mozambican banking services 
market. For example, foreign investors may either operate their business concerns as a branch  or 
incorporate domestically, and national treatment type restrictions are not maintained in the 
banking subsector . Unfortunately, this level of openness has not translated to increased 
affordability and availability of banking products, as access to finan ce remains an obstacle to 
improving Mozambique's investment climate.  
4.77.   Cross -border acceptance of deposits and lending by banks are allowed, but lending is 
subject to restrictions on the period, size, and interest rate of the loan. For the provision of these  
services through the establishment of a commercial presence, the incorporation of a company 
                                                
8 Online information. Viewed at: http://reports.weforum.org/global -competitiveness -report -2015-2016/ .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  requires authorization, which is granted on a case -by-case basis by the Central Bank. In addition, 
the repatriation of earnings requires the approval of the Invest ment Promotion Centre and 
registration with the Central Bank. Furthermore, t he sale of a branch of a foreign insurer requires 
prior authorization by the Minister of Finance; the establishment of branches of foreign insurers 
seems to be subject to an econom ic needs test ; insurance mediation is reserved for Mozambican 
residents and companies with headquarters in Mozambique; and the majority of the members of 
the board of joint stock insurance companies must be resident in Mozambique. In addition, there is 
a prohibition on non -resident insurance companies from covering risks in Mozambique unless the 
companies established in Mozambique deem that the risk is too high.  
4.78.   Further, the provision of life and non -life insurance is separated (i.e. an insurance company 
may only provide one type of insurance). Restrictions are lower in the insurance subsector  than in 
the banking sector, but the most restrictive practices are applied to the cross -border supply of 
insurance services. While the cross -border provision of automo bile and life insurance and 
re-insurance is allowed, the provision of the former two services is subject to the demonstration of 
the local/domestic unavailability of the services provided. In addition, there are limitations on the 
value of the insurance po licy and the final sector receiving the service. The only restrictions on the 
provision of these services through the establishment of a commercial presence are the 
requirements to secure the approval of the Investment Promotion Centre and to register with  the 
Central Bank.  
4.79.   The Financial Sector Development Strategy 2013 -2022 provides the Government's 
framework for sector growth. It aims to maintain financial stability, improve financial access and 
support inclusive growth, and increase the supply of long -term private capital to support 
development. Strategies, policies and programmes to enhance financial sector deepening are being 
established within t he framework of the FSDS.  
4.80.   A key recent such initiative is the Financial Inclusion Strategy 2016 –20229, which focuses 
on three areas, as follows:  
 access to and use of financial services , which  includes actions to expand and diversify the 
network of financial service access points, improve the legal and regulatory framework for 
the expansion of financial products a nd services, develop a range of products for MSMEs, the 
low income population and farmers, and increase the level of information on financial 
inclusion;  
 strengthening financial infrastructure, which entails actions to improve the infrastructure for 
the Nat ional Payment System and the expansion of credit;  
 consumer protection and financial literacy , which  cover s the legal, regulatory and 
supervision framework for financial consumer protection, public information dissemination 
and financial knowledge of the po pulation.  
4.5.2   Transport and logistics  
4.81.   Mozambique has poor quality infrastructure. Much of the country's transport networks were 
damaged or destroyed during the civil war. Although notable improvements have been made, the 
country still compares unfavourably to  other countries in the world, and in 2013 was ranked 124th 
out of 144 countries by the World Economic Forum (WEF)10 in the "quality of transport 
infrastructure " index. The country fares even worse when it comes to the quality of roads, where it 
ranked 135th out of 144 countries. The quality of its railroads is deemed more adequate, with a 
ranking of 89th. Mozambique was ranked 116th for the quality of its port infrastructure by the WEF.  
4.82.   Despite the poor state of the current transport infrastructure, the Moz ambican economy is 
expected to continue expanding at robust levels, ensuring that the demand for transport services 
will gradually increase, in addition to providing the necessary incentive for the refurbishment and 
construction of transport networks.  
                                                
9 Bank of Mozambique 2015. Viewed at:  http://www.afi -global.org/news/2016/4/07/mozambique -
approves -national -financial -inclusion -strategy -2016-2022.  
10 Online i nformation. Viewed at: http://reports.weforum.org/global -competitiveness -report -2015-
2016/economies/#economy=MOZ .  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.83.   Due to its geographical location, Mozambique is a useful transit route for the international 
trade of landlocked countries like Zambia, Zimbabwe, Swaziland, Malawi, the Democratic Republic 
of the Congo and the northwest region of the Republic of South Africa. Mozambique is responsible 
for 70% of SADC's transit traffic, with logistics corridors linking the deep water coastal ports with 
neighbouring countries. It therefore plays a major role in regional trade, as it provides important 
transportation corridors for  cross-border businesses as well as exporters and importers of goods.  
4.5.2.1   Development corridors  
4.84.   The corridors seek to promote trade and investment -led growth, focusing on large anchor 
projects, normally mineral -based, and optimizing investments in infrastructu re, encouraging value -
added activities and enhancing the competitiveness of regional economies. The three major growth 
corridors in Mozambique are the Maputo Corridor to the South African border; the Nacala Corridor 
linking the central and northern provinc es of Mozambique and Tanzania, Zambia, and Malawi to 
the Nacala deep water port; and the Beira Corridor linking Mozambique's central provinces and 
neighbouring Zimbabwe with the Beira port.  
4.85.   Mozambique has seven main seaports, of which Maputo, Beira and Nac ala are the most 
important. These three ports have functioning rail and road links, linking them to the hinterland 
and neighbouring countries. Maputo is the busiest port, and a primary hub for different kinds of 
cargo, and Nacala is most suited for the han dling of coal and heavy -bulk goods. Beira, however, 
has limitations that make it inefficient for export ing coal. 
4.86.   Mozambique continues to make a significant contribution to regional integration, as the 
three regional transport corridors – Beira, Nacala and Maputo – play a strategic role in freight 
handling to and from the land -locked neighbouring countries of Zimbabwe, Zambia, Malawi, and 
Botswana, as well as South Africa, and will therefore facilitate the movement and connection of 
cross-border transport to  the rest of the SADC freight market. Truck processing times at Maputo, 
Beira and Nacala compare favourably with other Southern African ports.  
4.87.   The Maputo Development Corridor (MDC) is the most important of Mozambique's three 
corridors, given the close econ omic ties between Mozambique and South Africa. It is the largest 
and most successful development corridor initiative thus far in the SADC. It was created in 1996 
with the aim of upgrading the port of Maputo and improving the rail and road links between 
Maputo and South Africa, in order to attract more South African traffic to the port. Important 
drivers have been the availability of electricity in the centre of Mozambique for the Mozal 
aluminium smelter near Maputo and the availability of gas from the south  for the Sasol 
petrochemical complex in South Africa.  
4.88.   The Nacala Corridor stretches from Lusaka in Zambia, through Malawi, to the port of Nacala 
in Mozambique. It is envisaged that the Nacala Corridor will be one of the most cost -effective 
routes to the se a for import s and exports from Malawi, Zambia and western Mozambique. Thus, 
this Corridor will create an alternative for transport operators, with a view to reducing transit time 
and costs. Such savings can then be optimized towards greater productivity by  individual transport 
operators through more trips and reduced operating costs per trip.  
4.89.   The Beira Corridor is a vital access link between the port of Beira and Mozambique's interior, 
as well as to its neighbouring, landlocked countries of the Democratic R epublic of the Congo, 
Zimbabwe, Zambia and Malawi. It involves the rehabilitation of the transport infrastructure of the 
Beira Corridor in Mozambique, including the rehabilitation of the Sena railway line and the 
restoration of the Beira port access channe l to its original specification.  
4.5.2.2   Institutional framework  
4.90.   The current transport and logistics system in Mozambique is designed to link neighbouring 
countries to Mozambique's ports and, domestically, to link mines and industry to the ports. 
Transport adminis tration in Mozambique is managed by a combination of national, provincial and 
private authorities. The Ministry of Transport and Communications sets policy and regulations for 
rail, air and ports.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.91.   The road sector comes under the Ministry of Public Works, H ousing and Water Resources, 
which integrates the National Road Administration (ANE), responsible for the implementation of 
the road programme and the Road Fund (FE), responsible for financing through a combination of 
fuel charges, bridge tolls and transit charges.  
4.92.   The Mozambique Ports and Railways Company (CFM) is a state -owned enterprise comprised 
of four branches: CFM North, CFM Central, CFM South and CFM Zambezia. It operates the railway 
lines in these geographic areas and is also responsible for port in frastructure and services.  
4.93.   The sector regulator, the National Institute of Surface Transport ( Instituto Nacional dos 
Transportes Terrestres,  or INATTER) was created in 2011 to regulate, monitor and supervise 
activities involved in land transport, with resp ect to the transport needs of people and goods, and 
the promotion of the security, quality and rights of the users of road and rail transport. The 
practical implications of this mandate are not yet clear, given the recent establishment of the 
Institute.  
4.5.2.3   Road transport  
4.94.   Transport by road accounts for nearly all of passenger traffic in Mozambique and over half of 
freight traffic. Of Mozambique's network of 30,000 km of roads, only around 6,500 km are paved. 
The condition of the road network is poor, in particu lar in rural areas. Secondary roads and 
all-season rural roads are scarce. The authorities acknowledge that there is scope to increase 
domestic transport systems, especially secondary roads, which can, in turn, facilitate trade, 
agricultural development an d other economic and human activities. While the Government has 
acknowledged the importance of developing rural roads, progress has been limited. However, 
without a rail network that covers the country, and with limited shipping between cities, the road 
network is the only transport option for the majority of the population.  
4.95.   Road transport in Mozambique is regulated by the Road Decree (Law No. 1/2011). The 
provisions of this Decree are applicable to transport on roads that are owned by the State and on 
roads that are privately owned, when these are opened for public transport.  
4.96.   Mozambique is a signatory to the SADC Protocol on Transport, Communications and 
Meteorology (PTCM). The SADC PTCM provided the framework for the bilateral agreements signed 
between Mo zambique and some countries in the region , namely: South Africa, Malawi, Swaziland, 
Zimbabwe and Zambia.  
4.97.   The private sector is currently estimated to control over 90% of the passenger and freight 
transport market.  The fixing of passenger services fares and  route allocation in passenger 
transport falls under government responsibility, while pricing for freight transport is determined by 
market forces. Competition is relatively strong in the Mozambican trucking industry on the main 
transport corridors. Nevert heless, truck use is not optimal because of low freight volumes, 
cumbersome procedures, and bad roads on some corridors.  
4.5.2.4   Ports and railways  
4.98.   Mozambique has three major ports at Beira, Maputo and Nacala, which act as important 
conduits for trade in the neig hbourhood, especially for landlocked countries. It has about 13 other 
small ports located along the coastline. Beira port will have to be dredged and modernized and 
new terminals built to accommodate the growing amount of coal that is expected to pass thro ugh 
it in the years to come. Nacala port, Mozambique's third largest port, is another important point 
for moving coal to markets. CDN, a Mozambican private company, currently holds the concession 
for managing Nacala port together with the Government. Howev er, according to the authorities, 
Nacala port faces a number of challenges: the cost of terminal handling charges (e.g. for weighing, 
container storage, and wharfage); productivity of container operations; the need for port 
equipment such as shore cranes t o load and unload cargo; and the periods during  which containers 
remain at the terminal.  
4.99.   Rail transportation in Mozambique is divided into three more or less independent networks 
in the south, centre and north of the country, connecting neighbouring countr ies with the three 
main ports in Mozambique  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.5.2.5   Air transportation services  
4.100.   Mozambique has 25 airports, including an international airport in the capital city, Maputo. 
There are also international airports at Vilanculos, Tete, Beira, Nampula and Pemba. Howeve r, 
there is a lack of competitiveness, as the flag carrier, LAM, and South African Airways (SAA) 
dominate the airline sector.  
4.101.   The Civil Aviation Law No. 21/200911 liberalized domestic air services, while the provision 
of international air transport service s is in accordance with Mozambique's bilateral air services 
agreements (BASA s). The more recent agreements provide for the first four freedoms of the air; 
prohibit cabotage ; designate a single carrier per country to service the route; require that tariffs 
be approved; and that capacity be determined by the carriers.  
4.102.   Law No. 21/2009 reserves the provision of air services between two points in Mozambique  
for national carriers, even when the flight originates or makes a stop in a foreign country. Further, 
to be designated as a national carrier, the airline must be domestically incorporated and 
Mozambique must be the airline's principal place of business. Further incentives are reserved for 
national carriers servicing low -traffic domestic destinations.  
4.103.   By means  of the recently published Resolutions Nos. 56/2015, 57/2015, 58/2015, 
59/2015, 60/2015 and 61/2015, all of 31 December 2015, the Council of Ministers approved the 
adherence of Mozambique to several civil aviation international instruments, specifically (i ) the 
International Air Services Transit Agreement, signed at Chicago, on 7 December 1944; (ii) the 
Supplementary Protocol, signed at Beijing, on 10 September 2010, to the Convention for the 
Suppression of Unlawful Seizure of Aircraft, signed at the Hague, on 16 December 1970; 
(iii) Convention on the Suppression of Unlawful Acts Relating to International Aviation, signed at 
Beijing, on 10 September 2010;  (iv) the Protocol on Offences and Certain Other Acts Committed 
on Board Aircraft, signed at Montreal, o n 4 April 2014; and (v) the Convention on Compensation 
for Damage to Third Parties, Resulting from Acts of Unlawful Interference Involving Aircraft, signed 
at Montreal, on 2 May 2009.  
4.5.3   Tourism  
4.104.   The country offers  a range of beach holiday products, ecotouris m, cultural diversity, and a 
coastline of 2,700 km along the Indian Ocean. The coast is particularly attractive with distinct 
marine species incl uding dolphins, whales, sharks and turtles.  
4.105.   The southern region of Mozambique dominates the industry, accountin g for nearly 50% of 
total earnings generated, thanks to the relatively high quality of infrastructure and considerable 
investments in the region. The northern region is perhaps the most attractive touristic region and 
enjoys international visibility. The r egion features historic places such as Ibo i sland, the 
internationally acclaimed archipelago of Quirimbas, the Niassa Reserve and the bio -diversity of 
Lake Niassa.  
4.106.   Since 2000, tourism is a development priority. Presidential Decree No. 9/2000 established 
the Ministry of Tourism (MITUR) in clear recognition of the potential of the industry to generate 
employment, promote infrastructure development and local economies, and generate resources to 
improve the country's balance of payment s. The relevance of touris m to economic growth and 
poverty reduction is also acknowledged by the Strategic Plan for the Tourism Sector, 2004 -2014. 
This plan was phased out in 2014 and a new one was developed  and recently approved.12 
Furthermore, measures that seek to stimulate more effective competition in the air transport 
sector, constrained by relatively high costs, are likely to yield significant benefits to the wider 
economy in general and to the tourism industry in particular.  
                                                
11 Superseded by the new Civil Aviat ion Law (No. 4/2016) of 14 June 2016. Viewed at: 
http://www.iacm.gov.mz/index.php?option= com_content&view=article&id=65%3Alegislacao -do-
sector&catid=41%3Alegislacao -regulamentacao&Itemid=107&showall=1 . 
12 UNWTO, "New Strategic Tourism Development Plan (STDP) for Mozambique Approved ", 
14 January 2016. Viewed at:  http://cooperation.unwto.org/news/2016 -01-14/new -strategic -tourism -
development -plan-stdp-mozambique -approved . WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  4.107.    The broad mandate of the MITUR is to plan and imp lement policies within the domains of 
tourism activities, touristic lodging, restauration and night clubs, casinos, and conservation areas. 
The Ministry is made up of the General Inspection of Tourism (IGT), which is tasked primarily with 
enforcing laws, r egulations and policies within the sector; the National Directorate of Tourism 
(DNATUR), whose role is to guide, discipline and support touristic activities, touristic lodging, 
restauration, and beverage and night club enterprises; and the National Directo rate of Games of 
Fortune (DNJFA), which plays the role of instructing the process of licensing exploration of 
gambling. The National Directorate of Planning and Cooperation (DPC) is the technical unit of the 
Ministry, with the role of carrying out analysis  and planning within the sector.  
4.108.   Other subordinate institutions include : the National Institute of Tourism (INATUR), 
established by Decree No. 36/2008, with the role , inter alia , of promoting development of the 
tourism sector, classification of tourism ent erprises, and development of areas of touristic interest; 
the unit for Coordination of Trans -Boundary Conservation Areas (ACTF), which is tasked with 
promoting connectivity and the effectiveness of biodiversity conservation while enhancing 
community benefi ts through the promotion of environmentally sustainable tourism; and the 
National Agency for Conservation Areas (ANAC), whose mission is to ensure the conservation of 
biodiversity, the administration and promotion of sustainable use of conservation areas , as well as 
establishing partnership s for the development of conservation areas.  
4.109.   New Regulations on travel and tourism agencies and tourist information professionals, 
approved by Decree No. 53/2015 (of 31 December 2015) , repealed the previous regime 
establi shed by Decree No. 41/2005 , and  now govern the licensing and operation of travel and 
tourism agencies and the activities carried on by tourist information professionals. The new regime 
has been in force since 30 January 2016.  
4.110.   According to the authorities,  tourism earnings consistently increased from 2009 to 2012 ; 
during 2009 -2013, an average of 1.9 million persons per year arrived in the country.  
 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by product group, 2008 -2015  
 2008  2009  2010  2011  2012  2013  2014  2015  
Total (US$ million)  2,653  2,147  2,243  3,604  3,470  4,024  4,725  3,196  
(Per cent of total)  
Total primary products  86.2 47.7 93.0 92.6 87.8 84.9 83.7 91.6 
  Agriculture  18.2 26.3 19.8 25.7 21.0 20.4 19.2 22.7 
    Food 14.7 23.2 15.5 20.5 16.5 16.7 15.0 20.0 
      1212 - Tobacco, wholly or 
partly stemmed/stripped  6.2 7.2 5.9 4.8 6.3 6.2 5.3 8.9 
      0611 - Sugars, beet or cane, 
raw, in solid form  0.0 2.7 0.2 2.4 4.2 4.6 1.7 3.7 
      0573 - Bananas (including 
plantain s), fresh or dried  0.2 0.2 0.6 4.7 0.7 0.6 0.9 1.0 
      0361 - Crustaceans, frozen  2.5 2.8 2.3 1.2 0.6 0.9 1.0 0.8 
      1121 - Wine of fresh grapes 
(including fortified wine)  0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.6 
      2225 - Sesame ( Sesamum ) 
seeds  1.2 1.8 0.8 0.5 0.5 0.7 0.9 0.6 
      0542 - Leguminous 
vegetables, dried, shelled, whether 
or not skinned or split  0.3 1.8 1.0 0.7 0.5 0.5 0.9 0.6 
      4215 - Sunflower seed or 
safflower oil and fractions thereof  0.0 0.0 0.0 0.1 0.2 0.3 0.6 0.5 
      0577 - Edible nuts (excluding 
nuts chiefly used for the extraction 
of oil), fresh or dried  1.2 1.6 1.3 2.4 0.7 0.8 0.8 0.4 
    Agricultural raw material  3.5 3.1 4.3 5.2 4.5 3.7 4.2 2.7 
      2631 - Cotton (other than 
linters), not carded or combed  1.9 1.2 0.0 0.6 0.3 2.0 1.0 0.9 
      2484 - Wood of non -coniferous 
species, sawn or chipped 
lengthwise, sliced or peeled  0.8 1.2 1.8 3.4 1.0 0.7 1.5 0.6 
  Mining  68.0 21.3 73.3 66.9 66.8 64.5 64.5 68.8 
    Ores and other minerals  2.4 3.6 1.5 5.5 7.5 4.5 4.4 5.0 
      2878 - Ores and concentrates 
of molybdenum, niobium, 
tantalum, titanium, vanadium and 
zirconium  1.4 2.6 0.9 4.8 6.9 3.8 3.9 4.5 
    Non-ferrous metals  54.8 0.3 51.8 45.1 31.4 26.5 30.0 33.4 
      684 - Aluminium  54.7 0.0 51.7 45.1 31.4 26.4 29.9 33.4 
    Fuels 10.8 17.4 19.9 16.3 27.8 33.5 30.0 30.4 
      3250 - Coke and semi -coke 
(including char) of coal, of lignite 
or of peat  0.0 0.0 0.0 0.6 12.5 13.1 10.2 12.1 
      3510 - Electric current  8.5 12.8 12.3 8.2 6.7 6.8 6.4 9.9 
      3431 - Natural g as, liquefied  0.1 3.6 6.0 4.5 5.0 4.1 6.3 7.2 
Manufactures  6.0 11.6 3.2 7.4 12.2 15.0 16.3 8.4 
  Iron and steel  0.5 0.3 0.1 0.1 0.2 0.9 0.6 0.2 
  Chemicals  0.2 0.3 0.1 0.3 3.6 1.7 10.1 0.5 
  Other semi -manufactures  0.5 0.7 0.3 0.4 0.2 0.6 2.2 3.6 
      6673 - Precious stones (other 
than diamonds) and semi -precious 
stones  0.0 0.0 0.0 0.0 0.0 0.0 1.7 3.1 
  Machinery and transport 
equipment  3.8 8.1 1.7 5.7 4.6 9.6 2.2 2.7 
    Power generating machines  0.1 0.2 0.0 0.0 0.0 0.1 0.0 0.1 
    Other non -electrical machinery  1.9 3.9 0.9 1.3 1.7 2.2 0.8 1.1 
      Agricultural machinery and 
tractors  0.1 0.5 0.0 0.1 0.6 0.0 0.0 0.0 
    Office machines and 
telecommunication equipment  0.1 0.2 0.1 0.0 0.0 0.1 0.1 0.1 
    Other electrical machines  0.1 0.1 0.1 0.1 0.0 0.2 0.1 0.1 
    Automotive products  0.5 0.7 0.1 0.2 0.5 0.6 0.1 0.1 
    Other transport equipment  1.0 2.9 0.5 4.0 2.5 6.4 1.1 1.2 
  Textiles  0.1 0.1 0.1 0.0 0.1 0.1 0.1 0.1 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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   2008  2009  2010  2011  2012  2013  2014  2015  
  Clothing  0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 
  Other consumer goods  1.0 2.3 0.9 0.7 3.5 2.1 1.0 1.2 
Other  7.7 40.7 3.8 0.0 0.0 0.0 0.0 0.0 
Source:  UNSD Comtrade database, SITC Rev.3.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table A1. 2 Merchandise exports by destination, 2008 -2015  
 2008  2009  2010  2011  2012  2013  2014  2015  
Total (US$ million)  2,653  2,147  2,243  3,604  3,470  4,024  4,725  3,196  
 (Per cent of total)  
Americas  1.2 2.9 1.3 3.6 2.6 4.2 2.4 2.6 
  United States  0.7 1.9 0.7 0.7 1.8 3.6 1.1 1.8 
  Other Americas  0.5 0.9 0.6 2.9 0.8 0.6 1.3 0.8 
Europe  63.6 52.2 62.1 55.9 44.7 40.7 40.7 47.9 
  EU-28 62.7 51.1 61.4 52.9 40.5 38.2 38.1 46.2 
    Netherlands  55.6 41.6 52.7 38.9 26.6 28.6 23.5 29.8 
    Italy 0.3 0.7 0.0 1.4 3.1 0.9 1.6 3.1 
    Belgium  0.9 0.7 0.4 0.5 1.0 1.2 1.3 2.8 
    United Kingdom  0.4 1.3 0.1 5.5 5.1 1.2 4.4 2.5 
    Luxembourg  0.0 0.1 0.0 0.0 0.0 0.0 0.6 1.5 
    Romania  0.0 0.0 0.0 0.0 0.0 0.1 0.1 1.0 
    France  0.5 0.3 0.1 0.2 0.1 0.8 1.1 1.0 
    Portugal  1.0 1.5 4.8 1.2 0.5 2.6 1.1 0.9 
    Spain  1.9 1.5 1.4 2.3 1.5 1.8 1.2 0.8 
    Germany  0.9 1.2 0.9 2.1 0.5 0.3 1.3 0.7 
  EFTA 0.8 0.5 0.3 2.8 3.6 2.1 1.9 0.7 
  Other Europe  0.2 0.6 0.4 0.2 0.5 0.5 0.6 1.0 
    Turkey  0.2 0.6 0.4 0.2 0.5 0.4 0.6 0.7 
Commonwealth of 
Independent States (CIS)  1.7 1.6 0.8 0.7 2.1 0.4 0.7 1.3 
    Russian Federation  0.9 1.4 0.6 0.7 0.5 0.2 0.4 0.8 
Africa  16.1 29.3 26.0 23.0 24.4 28.9 25.6 24.8 
    South Africa  10.0 21.4 20.8 16.2 19.2 22.4 20.1 18.3 
    Zimbabwe  3.1 3.4 3.2 3.5 2.4 1.9 2.3 2.5 
    Namibia  0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.2 
Middle East  0.9 0.7 0.9 4.6 0.6 1.7 3.4 1.7 
    United Arab Emirates  0.4 0.4 0.3 0.3 0.3 1.0 2.5 1.1 
Asia 4.4 9.2 8.0 12.2 25.7 24.0 27.1 21.5 
  China  1.9 3.5 3.5 4.7 18.4 2.6 4.3 2.7 
  Japan  0.5 0.2 0.2 0.0 0.3 0.5 1.1 0.6 
  Other Asia  1.9 5.6 4.3 7.5 7.0 20.9 21.8 18.1 
    India 1.1 2.6 1.4 2.4 4.5 16.9 8.2 10.6 
    Singapore  0.1 1.3 0.5 0.3 0.8 0.9 10.0 4.6 
    Hong Kong, China  0.0 0.3 0.1 0.0 0.0 0.0 0.1 0.9 
    Korea, Republic of  0.0 0.0 0.2 0.0 0.2 0.0 0.2 0.7 
Other  12.1 4.1 0.9 0.0 0.0 0.0 0.0 0.0 
         
Memo:          
SADC  15.9 27.9 25.8 22.0 24.1 28.0 24.8 24.5 
Source:  UNSD Comtrade database.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table A1. 3 Merchandise imports by product group, 2008 -2015  
 2008  2009  2010  2011  2012  2013  2014  2015  
Total (US$ million)  4,008  3,764  3,564  6,306  6,177  10,099  8,743 7,908  
 (Per cent of total)  
Total primary products  35.9 32.5 33.0 47.9 47.1 46.2 40.0 32.6 
  Agriculture  15.2 16.6 12.6 13.2 13.9 11.6 13.8 13.2 
    Food 14.2 15.4 11.6 12.3 13.0 10.7 12.5 11.9 
      0423 - Rice, semi -milled or wholly 
milled  2.9 4.0 2.1 2.1 1.5 2.5 2.1 1.9 
      0412 - Other wheat (including spelt) 
and meslin, unmilled  2.5 2.4 1.8 2.1 1.7 1.4 1.7 1.8 
      0342 - Fish, frozen (excluding fillets 
and minced fish)  0.9 1.0 0.9 0.9 0.7 0.9 1.0 1.0 
    Agricultural raw material  1.0 1.2 1.0 0.8 0.9 0.9 1.3 1.3 
      2690 - Worn clothing and other worn 
textile articles; rags  0.4 0.7 0.6 0.4 0.6 0.7 0.8 0.8 
  Mining  20.6 15.9 20.4 34.7 33.2 34.7 26.2 19.5 
    Ores and other minerals  0.3 0.3 0.4 0.2 0.2 0.3 0.4 0.3 
    Non-ferrous meta ls 0.1 0.1 0.1 10.9 9.2 5.0 6.3 6.2 
      6841 - Aluminium and aluminium 
alloys, unwrought  0.0 0.0 0.0 9.5 4.8 4.8 6.1 5.9 
    Fuels 20.2 15.4 19.9 23.6 23.8 29.4 19.5 13.0 
      3510 - Electric current  3.0 3.4 4.4 5.0 5.0 2.9 3.1 3.1 
Manufactures  47.3 55.0 49.6 52.1 52.9 53.7 60.0 67.3 
  Iron and steel  2.4 3.3 2.9 2.5 3.0 2.7 4.2 3.5 
  Chemicals  7.8 7.2 6.8 7.7 6.5 6.1 8.2 10.2 
      5429 - Medicaments, n.e.s.  1.2 0.9 0.9 1.7 0.7 1.2 1.5 3.4 
      5231 - Fluorides; fluorosilicates, 
fluoroaluminates  and other complex 
fluorine salts  0.0 0.0 0.0 0.0 0.0 0.2 0.6 1.1 
  Other semi -manufactures  7.0 8.7 8.7 7.9 6.4 6.8 8.8 9.0 
      6911 - Structures (excluding 
prefabricated buildings of group 811) and 
parts of structures  0.9 0.9 1.3 2.1 0.9 0.9 1.6 1.8 
      6612 - Portland cement, aluminous 
cement, slag cement, supersulphate 
cement and similar hydraulic cements  1.3 2.0 1.5 1.2 0.5 1.2 1.0 1.2 
  Machinery and transport equipment  24.4 28.8 26.0 29.3 30.6 23.3 32.1 38.0 
    Power generating machines  0.5 0.6 0.8 0.6 0.5 0.7 1.0 1.3 
    Other non -electrical machinery  6.9 9.4 8.4 12.6 16.2 7.8 11.3 10.4 
      7232 - Mechanical shovels, 
excavators and shovel -loaders, self -
propelled  0.4 0.5 0.6 2.8 1.0 0.9 1.5 0.9 
      7239 - Parts, n.e.s., of the machine ry 
of group 723 (excluding heading 723.48) 
and of subgroup 744.3  0.4 0.6 0.8 2.3 1.8 0.7 0.7 0.9 
      7283 - Machinery for sorting, 
screening, separating, washing, crushing, 
grinding, in solid form  0.2 0.5 0.4 0.8 2.0 0.5 1.2 0.8 
    Agricultural machin ery and tractors  0.8 0.9 0.7 0.7 0.4 0.4 0.5 0.5 
    Office machines and 
telecommunication equipment  3.3 2.9 1.9 1.5 2.3 3.0 4.1 3.3 
    Other electrical machines  3.0 3.2 3.7 3.0 3.1 2.7 4.5 4.4 
      7731 - Insulated wire, cable and 
other insulated ele ctric conductors  1.0 0.7 0.7 0.6 0.7 0.6 1.0 0.8 
    Automotive products  8.7 10.4 9.1 8.9 7.1 7.3 8.7 8.4 
      7821 - Motor vehicles for the 
transport of goods  4.2 4.8 4.1 4.3 3.9 3.3 4.0 4.1 
      7812 - Motor vehicles for the 
transport of persons, n. e.s. 2.4 2.7 2.2 2.0 1.4 1.8 2.1 2.0 
      7843 - Other parts and accessories of 
the motor vehicles of groups 722, 781, 
782 and 783  0.5 0.6 0.6 0.5 0.7 0.7 0.8 0.7 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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   2008  2009  2010  2011  2012  2013  2014  2015  
    Other transport equipment  2.0 2.4 2.0 2.6 1.3 1.8 2.5 10.1 
      7932 - Ships, boats and other vessels  0.2 0.2 0.0 0.1 0.0 0.0 0.0 6.7 
      7912 - Other rail locomotives; 
locomotive tenders  0.0 0.2 0.0 0.3 0.2 0.2 0.5 0.8 
  Textiles  1.1 1.4 0.8 0.9 0.9 0.8 1.2 1.1 
  Clothing  0.5 0.5 0.5 0.5 1.7 0.5 0.7 0.7 
  Other consumer goods  4.1 5.0 3.9 3.4 3.9 13.7 4.8 4.9 
Other  16.8 12.4 17.3 0.0 0.1 0.0 0.0 0.0 
Source:  UNSD Comtrade database, SITC Rev.3.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table A1. 4 Merchandise imports by origin, 2008 -2015  
 2008  2009  2010  2011  2012  2013  2014  2015  
Total (US$ million ) 4,008  3,764  3,564  6,306  6,177  10,099  8,743  7,908  
 (Per cent of total)  
Americas  6.0 5.5 3.3 6.7 9.8 5.9 4.2 4.4 
  United States  4.0 3.6 2.1 4.6 4.1 2.0 1.8 2.5 
  Other Americas  2.0 2.0 1.2 2.1 5.6 3.9 2.4 1.9 
      Brazil  0.7 0.9 0.7 0.7 4.6 0.8 1.0 0.6 
Europe  28.2 25.0 31.2 22.1 24.1 16.0 20.4 24.0 
  EU-28 27.4 24.2 30.6 21.6 22.9 15.2 19.4 22.5 
      Netherlands  17.4 13.0 18.0 10.7 9.3 4.3 6.9 7.3 
      Portugal  2.9 3.8 4.3 3.6 4.9 4.8 5.2 5.8 
      France  0.6 0.8 0.6 1.2 0.4 0.7 0.8 3.4 
      United Kingdom  1.3 0.8 1.6 3.5 6.0 2.4 1.4 1.2 
      Germany  1.6 1.8 2.2 0.5 0.7 1.0 1.4 1.2 
      Italy 0.8 1.5 2.1 0.7 0.3 0.6 1.1 0.8 
      Spain  1.1 0.7 0.3 0.4 0.3 0.4 0.6 0.7 
  EFTA 0.5 0.4 0.3 0.3 0.6 0.5 0.6 0.5 
  Other Europe  0.3 0.3 0.3 0.2 0.6 0.4 0.5 0.9 
Commonwealth of Independent States 
(CIS)  0.3 0.1 0.4 0.3 0.3 0.1 0.7 0.3 
Africa  32.2 38.7 39.7 36.8 34.0 35.3 35.7 33.6 
      South Africa  29.1 35.4 34.4 33.6 31.4 32.7 33.1 30.1 
      Zimbabwe  0.4 0.2 0.1 0.3 0.2 0.5 0.3 1.2 
      Swaziland  0.4 0.5 0.5 0.3 0.4 0.4 0.5 0.6 
      Namibia  0.4 0.3 0.5 0.5 0.5 0.7 0.6 0.6 
Middle East  9.7 4.4 5.7 11.4 14.7 17.6 15.4 10.0 
      Bahrain, Kingdom of  6.7 0.4 2.7 1.7 6.3 5.6 9.3 5.2 
      United Arab Emirates  2.6 2.0 1.3 6.4 7.4 8.5 5.5 4.3 
Asia 21.0 26.2 19.0 22.7 17.1 25.0 23.4 27.6 
  China  3.9 4.6 3.6 5.9 5.7 6.4 8.0 12.5 
  Japan  3.2 3.8 3.5 2.9 2.4 2.4 3.1 3.1 
  Other Asia  13.9 17.9 11.8 13.8 9.1 16.2 12.2 12.0 
      India 3.6 6.5 5.7 4.8 3.3 3.3 3.8 4.0 
      Singapore  0.3 1.8 0.2 0.6 0.7 6.2 1.3 1.9 
      Thailand  2.2 3.4 1.5 1.9 1.3 1.5 1.6 1.6 
      Viet Nam  0.6 0.9 0.3 0.9 0.9 1.2 1.4 1.0 
      Pakistan  0.9 1.5 1.4 1.0 0.4 0.8 0.8 0.8 
      Indonesia  1.0 0.4 0.4 0.7 0.6 0.7 0.6 0.8 
Other  2.6 0.0 0.7 0.0 0.0 0.0 0.0 0.0 
         
Memo:          
SADC  31.6 38.1 37.9 36.4 33.8 35.1 35.6 33.4 
Source:  UNSD Comtrade database.  WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table A1. 5 FDI inflows by origin , 2008 -2015  
 (US$ million)  (% of total)  
2008  2009  2010  2011  2012  2013  2014  2015  2008  2015  
World 591.6  898.3  1,017.9  3,558.5  5,629.4  6,175.1  4,901.8  3,710.8  100.0  100.0  
  United Arab 
Emirates  0.4 6.2 6.7 1,390.7  217.0  1,651.9  1,505.4  1,473.6  0.1 39.7 
  US 3.0 4.0 1.3 35.5 914.8  1,207.1  1,749.8  740.5  0.5 20.0 
  Mauritius  71.1 197.5  234.4  460.9  472.8 145.5  500.1  440.3  12.0 11.9 
  EU 100.8  205.4  -11.8 405.6  840.5  820.8  652.2  241.8  17.0 6.5 
  South 
Africa  160.4  41.4 129.3  97.0 -47.7 -281.4  115.2  236.0  27.1 6.4 
  India 14.9 2.2 -1.7 9.6 409.4  898.5  4.3 149.4  2.5 4.0 
  Australia  2.2 1.0 1.7 -44.8 635.9  333.0  218.9  102.0  0.4 2.7 
  Bahamas  0.1 0.2 0.0 0.0 0.0 8.7 30.6 86.2 0.0 2.3 
  British 
Virgin 
Islands  4.1 4.1 9.3 7.0 21.2 0.8 43.2 66.9 0.7 1.8 
  China  0.0 0.1 0.3 4.0 124.1  35.5 44.8 52.3 0.0 1.4 
  Switzerland  107.4  43.2 -29.0 135.3  3.2 -5.0 3.1 32.2 18.2 0.9 
  Botswana  0.0 0.0 3.0 14.8 0.7 0.1 7.1 18.8 0.0 0.5 
  Brazil  101.2  374.6  608.3  907.9  1,299.6  24.3 20.2 15.5 17.1 0.4 
  Japan  0.0 0.0 0.1 -21.9 35.9 -70.3 -10.3 12.9 0.0 0.3 
  Kuwait  3.0 8.2 -1.2 0.0 0.0 0.9 1.3 7.6 0.5 0.2 
  Norway  0.1 0.0 2.3 2.6 84.6 382.5  19.9 7.0 0.0 0.2 
  Hong Kong  0.0 0.0 0.0 4.0 0.0 4.9 9.0 6.5 0.0 0.2 
  Lebanon  0.0 0.0 0.0 0.0 0.0 0.1 0.0 6.3 0.0 0.2 
  Singapore  0.0 0.0 0.0 0.0 0.0 0.3 0.1 6.0 0.0 0.2 
  Angola  0.1 0.0 0.8 1.2 0.0 0.0 2.4 4.1 0.0 0.1 
  Other 22.7 10.2 64.3 149.2  617.4  1,016.9  -15.6 5.0 3.8 0.1 
Source:  Banco de Mozambique. Viewed in September 2016 at: http://www.bancomoc.mz/Noticias.aspx .  
 
 
 
 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table A2. 1 Legis lative and judicial framework, 2016  
Legislative and judicial framework, 2016  
Constitution  1990 Constitution of Mozambique, last amended in 2004.  
Executive  The President is elected by direct universal suffrage for a term of five years and can be 
(consecu tively) re -elected once only. General elections were last held in Mozambique in 
2014. The new president is Filipe Nyusi from the FRELIMO party. The President is the Head 
of State and presides over the Council of Ministers, composed of the Prime Minister 
(appointed by the President) and Ministers. The Council of Ministers formulates and 
implements government policies.  
Legislature  The unicameral Assembly of the Republic comprises 250 deputies elected for a five -year 
term (renewable). Legislative and presiden tial elections are held on the same cycle.  
Judiciary  Judicial authority is vested in the Supreme Court, the Administrative Court and the courts of 
justice. The court structure has four layers: a Supreme Court in Maputo; high courts of 
appeal; provincial c ourts; and district courts. The Administrative Court is the highest body 
in the hierarchy of administrative, fiscal, customs and fiscal courts. The courts of justice are 
empowered to deal with commercial disputes, and various mechanisms are provided for th e 
settlement of disputes between foreign investors and the State. Judges are appointed by 
the President upon the recommendation of the Superior Council of the Judiciary, and the 
Assembly approves nominations. The Constitutional Council rules on the constit utionality of 
treaties, laws, and decree -laws, as well as conflicts of jurisdiction, and makes prior 
evaluations of referenda.  
Legislative 
process  Legislation may be initiated, inter alia , by the deputies, the President, and the Council of 
Ministers. The Assembly adopts draft laws by majority vote of those present (provided that 
at least half of the deputies are present). The President must promulgate laws within 30 
days following their reception. Prior to this deadline, the President can submit a request to 
Parliament to reconsider the law. However, if it is upheld by a two -thirds majority vote by 
Parliament, then the President is required to promulgate it. The Council of Ministers may 
ratify agreements, including on trade and investment, by ministerial re solution, while the 
Assembly ratifies agreements and treaties by the adoption of laws.  
Hierarchy  
of legal 
instruments  Hierarchy: (i) laws, decree -laws, ratified international treaties and agreements; (ii) decrees; 
(iii) Assembly resolutions and Council of  Ministers' resolutions; and (iv)  ministerial 
diplomas. A decree -law is a law adopted by the Council of Ministers and promulgated by the 
President. It is deemed automatically ratified unless its ratification is demanded by a 
minimum of 15 deputies during t he session of the Assembly held immediately after its 
publication. Legal acts of the Assembly, President and Council of Ministers are published in 
the Government Gazette ( Boletim da República ). 
Source:  WTO document WT/TPR/S/209/Rev.1, 30 June 2009.  
 
 WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Table A3. 1 State -participated enterprises managed by the IGEPE, 2015  
Enterprises  Sector  Share 
of the 
State 
(%) Share 
of the 
IGEPE 
(%) 
ABERFOYLE TEA STATES MOÇAMBIQUE 
(EMOCHÁ -MILANGE ), S.A  Tea plantation/industry  20 -    
ABC - ALC LEASING, S.A  Financial leasing company  5          -    
AÇUCAREIRA DE MOÇAMBIQUE, S.A  Sugar estate/cane plantation  15          -    
AÇUCAREIRA DE XINAVANE, S.A  Sugar estate/cane plantation  12 - 
AGRO -ALFA - FUNDIÇÃO, S.A  Fabrication of steel structures,  
components and industrial systems  20 - 
AUTOVISA - SERVIÇOS AUTO, S.A. 
(EX-EMOCAT,E.E -U I)  20 - 
AUTO - GÁS, S.A  Natural gas company  - 22 
BANCO NACIONAL DE INVESTIMENTOS - BNI, 
S.A Investment bank  100 - 
CAIC - COMPLEXO AGRO -INDUSTRIAL DE 
CHOCKWE, SA Agricultural production (rice processing 
and product storage)  20 70 
CARTEIRA MÓVEL, S.A Mobile financial institution  - 30 
CDM - COMPANHIA DE DESENVOLVIMENTO 
MINEIRO, S.A  Mining (precious and semi -precious 
stone)  82.50  - 
CEGRAF - SOCIEDADE GRÁFICA, S.A  Printing and graphic services  8.48 - 
CELMOQUE - CABOS DE ENERGIA E 
TELECOMUNICAÇOES DE MOÇ., S.A  Telecommunications  14.81  - 
CEPAM -CENTRO DE PRODUÇÃO APÍCOLA DE 
MOÇAMBIQUE, S.A  Apiculture - honey production  20 - 
CERVEJAS DE MOÇAMBIQUE (EX -MAC-
MAHON), S.A  Brewery - produces, distributes, and 
sells alcoholic beverages  - 1.78 
CHÁ NAMAE, LDA.  Tea plantation  20 - 
CIM - COMPANHIA INDUSTRIAL DA MATOLA, 
S.A Food producing company  4.76 2.52 
CIMENTOS DE MOÇAMBIQUE, S.A  Cement  11.89  - 
COCA - COLA SABCO (MOÇAMBIQUE  ), S.A  Manufacturer and distributor of 
non-alcoholic beverages  - 28.78  
COMPANHIA ALGODOEIRA DE NAMPULA -
CANAM, S.A  Cotton company  24.28  - 
COMPANHIA DE SENA, S.A  Sugar estate/cane plantation  4.98 - 
COMPANHIA MOÇAMBICANA DE GASODUTO -
CMG, S.A  Natural gas c ompany  20 - 
COMPANHIA MOÇAMBICANA DE 
HIDROCARBONETOS -CMH, S.A  Hydrocarbons company  20 - 
COMPANHIA PIPELINE MOÇ./ZIMBA., LDA.  Natural gas company  50 - 
DIÁRIO DE MOÇAMBIQUE, S.A  Newspaper company  40 - 
DOMUS - SOCIEDADE DE GESTÃO 
IMOBILIÁRIA, S.A  Real est ate agency  14 80 
EMATUM - EMPRESA MOCAMBICANA DE ATUM, 
SA Fisheries company - tuna 66 34 
EMEM – EMPRESA MOÇAMBICANA DE 
EXPLORAÇÃO MINEIRA, S.A Mining and energy company  50 35 
EMOSE - EMPRESA MOÇAMBICANA DE 
SEGUROS, S.A  Insurance company  49 31 
EMOPESCA,  S.A Fisheries company  80 - 
EMPR. DE CONSTR. E MANUT. DE ESTRADAS E 
PONTES - CENTRO, S.A  Infrastructure - road/bridge 
construction  100 - 
EMPR. DE CONSTR. E MANUT. DE ESTRADAS E 
PONTES - NORTE, S.A  Infrastructure - road/bridge 
construction  100 - 
EMPR. DE  CONSTR. E MANUT. DE ESTRADAS E 
PONTES - SUL, S.A  Infrastructure - road/bridge 
construction  100 - 
EMPRESA DE ALUGUER DE EQUIPAMENTO - 
CENTRO, S.A  Equipment rental company  100 - 
EMPRESA DE ALUGUER DE EQUIPAMENTO - 
NORTE, S.A  Equipment rental company  100 - 
EMPRESA DE ALUGUER DE EQUIPAMENTO - 
SUL, S.A  Equipment rental company  100               
-    
ENCATEX, S.A (EX -ENCATEX, E.E. SEDE E 
DELEG. REG. CENTRO) Textile company  20 - 
ENIEL - EMP. NAC. INSTALAÇÕES ELÉCTRICAS Electrical installations company  20 - WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Enterprises  Sector  Share 
of the 
State 
(%) Share 
of the 
IGEPE 
(%) 
- MAPUTO, S.A  
FUNDAÇÃO MALONDA  Non-profit organization  - - 
GAPI - SOC. PARA APOIO A PEQUENOS 
PROJ.DE INVESTIMENTO, S.A  Support of small investment projects  - 30 
GEOMOC, S.A  Water supply company  20 - 
GERALCO, S.A  Agriculture industry - crude coconut oil  
and cashew nut shell liquid  20 - 
GRAPHIC - COMÉRCIO E INDÚSTRIA, LDA.   6.81 - 
GRUPO MADAL, S.A  Exporter (coconut oil, tropical fruit 
juices)/trading company (corn flour)  5 - 
HCB - HIDROELÉCTRICA DE CAHORA BASSA, 
S.A Hydroelectric company  85 - 
HIDROMOC  - BEIRA, S.A (EX -HIDROMOC, 
E.E.DELG. R. CENTRO)  Hydraulic equipment company  20 - 
HOTEL CARDOSO, S.A  Hotel 25.76  - 
HOTEL INHASSORO, S.A (EX -ORGANIZAÇÕES 
JOAQUIM ALVES)  Hotel 45.45  - 
IBC - INDÚSTRIA DE BORRACHA E CALÇADO, 
S.A Rubber and footwear industry   20 - 
IFLOMA - INDÚSTRIAS FLORESTAIS DE 
MANICA, S.A  Tree plantations company  20 - 
IMA - INDÚSTRIA MOÇAMBICANA DE AÇO, S.A  Steel industry  20 - 
LAM - LINHAS AÉREAS DE MOÇAMBIQUE, S.A  Airline company  91.15  - 
LOUMAR, LDA.  Fruit juice company  43.11    
MABO R DE MOÇAMBIQUE, S.A  Manufacture and distributor of rubber  92.80  - 
MÁRMORES DE MONTEPUEZ - MARMONTE, S.A  Marble mining company  20 - 
MALER, LDA.  Industrialization, import and export of 
ornamental stones  20 - 
mCEL - MOÇAMBIQUE CELULAR, S.A  Mobile phone co mpany  26 - 
MEDIMOC, S.A  Pharmaceutical i mporter and 
distributor  64.72  - 
METRO, LDA.  Import and wholesale marketing of 
food and non -food products  40 - 
MEXTUR, LDA.  Travel agency  25   
MILLENNIUM BIM , S.A  Mozambique International Bank 
(Millenium BIM)  17.12 - 
MIL-METALÚRGICA INDUSTRIAL, LDA. 
(EX-COMEC, E.E.)  Metallurgical company  20 - 
MIRCO HOLDINGS, S.A  Holding company  - 45 
MOAGENS DE MOÇAMBIQUE, S.A  Milling company (food industry)  34.39  - 
MOBEIRA - MOAGEM DA BEIRA, S.A  Milling company (food industry)  10 - 
MOCAJÚ - CAJÚ DE MOÇAMBIQUE, S.A 
(Ex-CAJÚ DE MOÇ., E.E. -MACHAVA)  Cashew nuts company  15 - 
MOÇAMBIQUE, PREVIDENTE - SOCIEDADE 
GESTORA DE FUNDO DE PENSÕES, S.A  Management of pension funds  20 - 
MOGAS, SOCIEDADE MOCAMBICANA DE 
GASES COMPRIMIDOS, SA Industrial and medical gases  33.75  - 
MONTE BINGA, S.A  Mineral resources exploitation  100 - 
MOZAÍCO DO ÍNDICO, S.A Development of the tourism industry in 
Mozambique  - 49 
MOZAL, S.A.  Aluminium smelting  3.85 - 
MOZAUTO, S.A  Auto repairs and maintenance 
compa ny 20 - 
MOZRE - MOÇAMBIQUE RESSEGUROS, S.A 
(EX ZIMRE, S.A)  Reinsurance company  - 20 
NAMI - NAMPULA METALO -MECA E INV, S.A 
(EX-MET. AGUSTINHO DOS SANTOS)  Manufacture and repair of metal 
utensils  20 - 
NORSAD, SA  Financial services  3 - 
PADARIA BENFICA, LD A. Bakery  20 - 
PATRIMÓNIO INTERNACIONAL, S.A  Cultural heritage -related activities  80 - 
PESCOM INTERNACIONAL - MAPUTO/I´BANE, 
S.A Fishing company  20 - 
PETROMOC, S.A  Distributor of petroleum products  60 20 
PINTEX - FÁBRICA DE TINTAS DE ULTRAMAR - 
MAPUTO,  S.A Paint factory  20 - WT/TPR/S/35 4/Rev.1  • Mozambique  
 
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  Enterprises  Sector  Share 
of the 
State 
(%) Share 
of the 
IGEPE 
(%) 
PINTEX - FÁBRICA DE TINTAS DE ULTRAMAR - 
BEIRA, S.A  Paint factory  40 - 
PLASMEX, LDA.  Plastic industry  20 - 
PROCAJÚ - INHAMBANE, S.A (EX -CAJÚ DE 
MOÇ. - I-BANE)  Cashew company  20               
-    
PROCAJÚ - MANJACAZE, S.A  Cashew c ompany  20 - 
PROJECTO INHASSUNE RAMALHUSCA, S.A   20 - 
REGADIOS E CONSTRUÇÖES, S.A (EX - SRBL)  Irrigation and construction company  49 - 
SABA TRADING, LDA. (DELG. NACALA -EX-
ENCATEX, E.E.)  Timber harvesting company  20 - 
SAMOFOR - SOC.ARGELINA MOÇAM.DE EXPL . 
FLORESTAL, S.A  Timber harvesting company  41 - 
SAMO - SOCIEDADE ALGODOEIRA DE 
MONAPO, S.A  Cotton company  45.63  - 
SEMOC, S.A  Seed company  100 - 
SMM - SOCIEDADE MOÇAMBICANA DE 
MEDICAMENTOS, S.A  Pharmaceutical industry       100  - 
SOCIEDADE MALONDA, S.A (EX. SOC. DE 
DESENVOLVIMENTO MOSÁGRIUS)  Promotion and provision of services in 
the agro -industrial, industry and 
ecotourism areas  3 - 
SOCIEDADE NOTÍCIAS, S.A  News industry  35.07  - 
SOCIEDADE PARA GESTÃO E DESENV. DA 
RESERV. DO NIASSA, S.A  Management of th e Niassa National 
Reserve  51 - 
SOGERE - FÁBRICA DE REFRIGERANTES DE 
GAZA, (INAR) S.A  Soft drinks company  20 - 
SOGIR - SOCIEDADE DE GESTÃO INTEGRADA 
DE RECURSOS, S.A  Society for management of resources  - 100 
SOMEC - SOC. MINEIRA DE CUAMBA, S.A  Mining  20 - 
SOTIL, LDA.  Tourism society  98.50  - 
STEIA 2000 - SOC.TÉCNICA DE EQUIP.IND.E 
AGRÍCOLA, S.A  Agro-industrial equipment society  20 - 
STEMA - SILOS E TERMINAL GRANELEIRO DA 
MATOLA, S.A  Silos and grain terminal company  44 56 
TECNAUTO - EMPRESA DE ASSISTÊNC IA 
TÉCNICA AUTO, LDA  Car dealing company  47.50  - 
TECNOMECÂNICA, LDA Agricultural and metallurgical 
hydraulics  20 - 
TDM - TELECOMUNICAÇÕES DE MOÇAMBIQUE, 
S.A Telecommunications and internet 
service provider  90 - 
TEXLOM, S.A Clothing manufacturer  100 - 
TEXTÁFRICA, S.A Textile factory  22.70  - 
TÊXTIL DE MOCUBA, S.A  Textile company  100 - 
TIPOGRAFIA CLÁSSICA COMERCIAL DA BEIRA, 
LDA. Typography shop  20 - 
TRANSMARÍTIMA, S.A  Maritime transport  100 - 
Source:  IGEPE.  
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