New laws pertaining to foreign companies working in Mozambique and new requirements for doing business in the country were discussed at the Gas & Petroleum and Mining Law Mozambique business briefing held in Maputo on April 21.
Event organiser African Influence Exchange (AIE) states that the briefing also focused on issues, such as promoting and developing local content policies and practice, as well as local content requirements for the procurement of goods and services for petroleum operations, designed to promote the development of Mozambican businesses and knowledge.
The briefing also looked at the legal requirements of companies operating in the mining, and oil and gas sectors, in terms of creating employment opportunities and providing technical training to Mozambicans, with a preference for the population residing in the immediate vicinity of the concession area and the associated 95% and 5% quota for locals within the immediate vicinity of a foreign-owned business.
Further, the limitation of tax incentives and the new tax frameworks, including a requirement for foreign persons to partner with Mozambicans for the supply of goods and/or services to the mining, and oil and gas sectors in Mozambique was also on the agenda.
In addition, the briefing also covered the processing and export of unprocessed minerals and the decree law for the Rovuma basin. Attendees also focused on the upcoming legislative changes in local content decree law, immigration law, quota systems and labour law.
“The Mozambique government has made great strides in developing world-class legislation to support the mining, gas and petroleum sectors’ growth and development. “The laws focus on increasing State participation, delivering the required infrastructure and increasing local participation and benefit for Mozambicans.
“Local content, although not a new concept, is implemented with varying degrees of success in mining and oil- and gas-producing countries. Many mining, and oil- and gas-producing countries are, or have introduced, requirements for local content into their regulatory frameworks. “These requirements aim to create jobs, promote enterprise development and accelerate the transfer of skills and technologies . . . hence, the briefing’s focus on the area of discussion,” states AIE.
The briefing was aimed at assisting the mining, and oil and gas industry companies to develop good practice in managing local content. It was attended by practitioners and other company representatives.