The Council of Ministers approved Decree No. 12/2026, of April 13, which establishes the new Regulation for Special Economic Zones (“SEZs”) and Industrial Free Zones (“IFZs”), repealing the previous Decree No. 75/99, of October 12.
The new Regulation aims to modernize the legal framework applicable to Special Economic Zones (SEZs) and International Trade Zones (ITZs), aligning it with the Private Investment Law (Law No. 8/2023, of June 9) and reinforcing the role of these regimes in industrialization, economic diversification and the promotion of private investment in Mozambique.
Main Objectives of the Regulation
Special Economic Zones (SEZs) and Industrial Zones (IFZs) are now assuming a strategic role in national economic development, focusing on:
a) promoting economic growth;
b) industrialization and increased competitiveness;
c) creation of skilled jobs;
d) development of value chains;
e) export promotion;
f) incorporation of local raw materials and increase in national added value; and
g) attracting private investment.
Eligible Activities
2.1. ZEE
In Special Economic Zones (SEZs), all economic activities permitted by law may generally be authorized, with the exception of:
- Activities related to prospecting, exploration and production of oil, gas and mineral resources (excluding industrial processing);
- Activities related to the manufacture or processing of weapons, ammunition, explosives and similar articles.
2.2. ZFI
ZFIs are primarily intended for industrial activities, requiring that at least 70% of annual production be destined for export.
Introduction of the Isolated Industrial Free Zone
One of the main novelties of the Regulation is the introduction of the “Isolated Industrial Free Zone” status, applicable to strategic projects located outside of existing IFTs. To benefit from this status, the project must cumulatively meet the following requirements:
a) minimum investment equivalent to 3,250,000,000.00 MT;
b) creation of at least 150 direct jobs for nationals; and
c) potential for the creation of value chains and industrial clusters.
3.1. Priority secators
a) agro-industry;
b) textile industry;
c) pharmaceutical;
d) metallurgy;
e) automobile assembly;
f) electronic equipment; and
g) biotechnology.
Creation and Approval Process
The creation of Special Economic Zones (SEZs) and Industrial Zones (IFZs) continues to depend on approval by the Council of Ministers, based on a proposal from the Minister responsible for the Economy. The Regulation establishes detailed requirements for submitting proposals, including:
a) economic and financial feasibility study;
b) business plan;
c) development and operationalization plan;
d) assessment of environmental and social impacts;
(e) plan for hiring and training national labor; and
f) commitment to implementing at least 10 projects in the first 5 years.
Employment Regime
The Regulation confirms the applicability of Mozambican labor law to companies in the Special Economic Zones (SEZs) and International Trade Zones (ITZs), introducing specific rules for the hiring of foreign workers. It is noteworthy that:
a) the number of foreign workers can reach up to 15% of the total number of national workers;
b) hiring above the quota is subject to the general regime;
(c) Operators must promote knowledge transfer and training of nationals.
Tax and Customs Regime
The Regulation reaffirms the existence of tax and customs incentives applicable to eligible projects, referring details to specific legislation. Key aspects include:
a) suspension of customs duties for the importation of equipment and supplies intended for the activities of the SEZs and ZFIs;
b) differentiated customs treatment for goods destined for export;
c) possibility of sale to the domestic market:
i. without express limitation for companies in EEZs; and
ii. up to 30% of annual production for companies in the ZFI, subject to payment of applicable taxes.
Supervision and Inspection
The Regulation strengthens the mechanisms for supervising and monitoring operators and companies established in the Special Economic Zones (SEZs) and International Financial Zones (IFZs), assigning responsibilities to the entity responsible for coordinating private investment, without prejudice to the responsibilities of the Tax Authority, the Bank of Mozambique, and other sectoral entities.
Sanctioning Regime
Penalties are foreseen for non-compliance related to:
a) misuse of incentives;
b) false statements;
c) failure to comply with the terms of the approved investment;
d) customs and exchange rate irregularities; and
(e) violation of labor and environmental obligations.
Sanctions may include:
a) warning;
b) loss of tax incentives;
c) revocation of the authorization; and
d) fines up to 1% of the approved investment amount.
Transitional Regime – Amendment to the Regime
The Regulation also provides for a transitional mechanism relevant to projects already approved before its entry into force. Under Article 59, previously approved investment projects whose activities are eligible for the SEZ and ZFI regimes may request a transition from the general regime to the new regime; for this purpose, the request must:
a) be expressly justified;
b) be addressed to the entity responsible for coordinating the private investment authorization process; and
c) be submitted within a maximum period of 180 days from the entry into force of the Regulation.
For further information and updates please contact JLA Advogados, the LEX Africa member in Mozambique, on maputo@jlaadvogados.com or visit https://www.jlaadvogados.com.
