Doing business in Mozambique
Mozambique is often called Terra da Boa Gente – the Land of the Good People. Similar to other emerging economies, it has a complex market environment, but the challenges do not overshadow the rewards from succeeding in Mozambique. Read here about some of the country-specific challenges you should be aware of when doing business in the Mozambican market.
Local Content Requirements
When approaching public tenders in Mozambique, certain sectors contain requirements towards the adherence to local production measures. LCR means that, in certain sectors, businesses are only allowed to accept proposals that are rooted in nationally produced goods, services and labour. Projects in the oil and gas sector are subject to local content legislation, which requires 25% of the project input to be of Mozambican origin. The legislation on local content is currently under review. Companies are advised to seek professional advice on what legislation applies to them before setting up.
Labour Laws and Regulations
Mozambique has detailed labour laws that govern among other things minimum salaries and the employment of foreign nationals. These differ from sector to sector. Companies should seek professional advice on what legislation applies to them specifically.
Business Culture
Personal relations are important to Mozambicans and they appreciate meeting their partners in person. The business culture is quite hierarchical. It is especially important when meeting government officials to familiarise yourself with their positions and to use their correct title in emails. Bureaucracy is complex and can be difficult to navigate. Technical capacity and international experience is limited. Be prepared to provide strong and practical leadership, and to invest in training and capacity building. Portuguese is the main language for doing business and few professionals speak more than basic English. It is also important to note that foreign companies are expected to contribute to community development projects.
