Mozambique

Investment & 
Operational
Climate

Mozambique’s lengthy coastline, deep-water ports, favourable climate, rich soil, and vast natural resources give the country significant potential, but investors perceive it as a risky market. The Government of the Republic of Mozambique (GRM) announced a slate of economic reforms in August 2022, including fiscal reforms and investment incentives. As part of the economic reform package, the government simplified procedures in logistic corridors, implemented a new e-visa system to facilitate entry into the country for tourists and business, and announced its intention to exempt 29 countries from entry-visa requirements. In 2023, the government expects to begin digital business registration and pass legislation to revise the investments and labour laws. Although the government is working to improve fiscal policies at the national level, the inconsistent and unpredictable application of combined local and national taxes remains burdensome. Many business contacts have complained that other challenges to investment include corruption, barriers to private land ownership, high interest rates, and poor infrastructure. Heavy rains and tropical storms cause frequent degradation of roads, bridges, and other infrastructure. Mozambican labour laws make it difficult to hire and fire workers, and court systems are bogged down by labour disputes. The domestic workforce lacks many advanced skills needed by industry, and the complicated visa process makes hiring foreign workers difficult.