The mandatory participation of Mozambican companies in major investment projects and the strengthening of the management of the country’s strategic resources are now governed by a new legal framework. The measure results from the enactment of laws revising the State Business Sector, Mining, and Petroleum sectors, as well as the new Local Content Law, by President Daniel Chapo.
According to a statement from the Office of the President, cited by the Agência de Informação de Moçambique (AIM), the laws were enacted after confirmation of their conformity with the Constitution of the Republic of Mozambique. This decision paves the way for their publication and subsequent entry into force.
“In exercising the powers conferred upon him by Article 162(1) of the Constitution of the Republic, the President of the Republic promulgated and ordered the publication of the laws on the State Business Sector, Mines, Petroleum, and Local Content,” the statement reads.
The same statement clarifies that the promulgation occurred after Daniel Chapo concluded that the laws “do not contravene the Constitution of the Republic,” thereby meeting all the legal conditions necessary for their publication and entry into force.
For the government, these legal instruments are essential for strengthening economic sovereignty, increasing the utilization of national resources, and ensuring greater benefits for Mozambicans. In this context, the revision of the laws governing the State-Owned Enterprise Sector, the Mining Sector, and the Petroleum Sector is part of the strategy to enhance the value of the country’s strategic resources.
At the same time, the amendments introduced aim to strengthen the State’s capacity to manage sectors considered critical to national economic development. The Executive believes that these measures will maximize the benefits of natural resource exploitation and ensure more meaningful participation by Mozambicans in activities related to the extractive sectors.
In turn, the Local Content Law establishes mandatory participation by the Mozambican business sector in major investment projects, while also prioritizing the procurement of goods and services produced within the country. The measure seeks to create more opportunities for domestic companies, stimulate domestic production, and amplify the impact of major investments on the national economy.
According to the statement, the new legal framework will help retain wealth in Mozambique, promote domestic investment, and boost job creation. “With the enactment of these laws, the Mozambican government strengthens the management of strategic resources in the national interest, while promoting employment, domestic investment, wealth retention, and the sustainable development of Mozambique,” the statement emphasizes.
The entry into force of these legal instruments comes at a time when the country is seeking to increase the value added generated by its mineral and energy resources. At the same time, the government aims to strengthen the role of the domestic private sector in the implementation of major development projects.
