The general investment legal framework is governed by the Investment Law, approved by Law No. 3/93, of 24 June 1993 and the Investment Regulations, approved by Decree-law No. 43/2009, of 21 August 2009 (as amended by Decree No. 48/2013, of 13 September 2013 and by Decree No. 20/2021, of 13 April 2021).

As a rule, foreign and/or domestic investment may be freely entered into. The approval of a foreign investment project through the APIEX, the Agency for Promotion of Investment and Export (Agência para Promoção do Investimento e Exportação), is not mandatory and depends entirely on the foreign investor’s will. However, it is recommended to obtain an investment authorisation mainly in order to secure certain foreign exchange, tax and customs benefits and incentives alongside with a more favourable regime for the hiring of expatriate employees. As a general rule, investment projects may be freely developed throughout the Mozambican territory, without any limitation in terms of (i) the area of activity; or (ii) the destination of goods or services. There are also some specific provisions for investments carried out in Special Economic Zone (Zona Económica Especial) or in a Free Industrial Zone (Zona Franca Industrial).

Foreign direct investment is also subject to foreign exchange control, and foreign direct investment inflows are subject to registration with the Central Bank of Mozambique within 90 days as from the date of entrance of the relevant funds in-country. 

The general investment legal framework expressly sets forth that investments on the petroleum (upstream) and mining sectors are not subject to the rules set forth therein. As a rule, the investment rules applicable to said sectors are subject to sector-specific legislation, which contain specific rules with respect to foreign direct investment or investments governed under contractual arrangements executed with the State.