Investing in Mozambique

The formal Mozambican market offers shares, Treasury bonds, corporate bonds and Papel Comercial, a short-term form of corporate debt with a maximum term of one year. Shares offer possible dividends and price growth. Bonds provide interest and repayment according to their terms. Papel Comercial has a shorter maturity and therefore creates refinancing and default risks. Funds, real-estate funds, venture-capital structures and portfolio management exist legally or functionally, but retail availability must be checked with the relevant provider. There is no evidenced universal local retail account, ETF system or robo-adviser platform. The BVM provides the exchange and primary and secondary markets. The Central de Valores Mobiliários (CVM) registers domestic issues and records ownership, rights, accounts, identification numbers and transfers. Banco de Moçambique supervises credit institutions and financial companies, oversees the BVM framework and foreign-exchange controls, and registers virtual-asset service providers. A listed investment normally requires an account and custody arrangement with a financial institution or licensed stock-exchange intermediary. The investor provides identification, the security, quantity, price and order validity. Know-your-customer checks, proof of funds, tax information or foreign-exchange documents may also be required. Trading takes place on business days from 08:00 to 12:00. An order may apply to one trading session or remain valid for up to 30 days. A limit order sets the highest purchase price or lowest sale price. An order at the best available price gives priority to execution but creates greater price risk. Exchange price bands are up to 25% for shares and participation rights and up to 20% for debt securities. BVM access is concentrated among financial institutions and licensed intermediaries, so availability, minimum amounts and service charges must be confirmed directly. The CVM account separates and documents the investor's holdings. Custody, dividend payments, transfers, pledges and inheritance-related forms are handled according to the intermediary's tariff. The BVM, CVM, intermediary and financial institution can each charge fees. Possible charges include order processing, brokerage, custody, dividend handling, transfers, foreign exchange and tax advice. One BVM share-offer example uses a 0.10% subscription fee, but tariffs can change. Mozambican tax treatment depends on the instrument, investor status and transaction. Capital income and gains fall within the relevant category of IRPS for individuals, while companies generally face IRPC; the general corporate income-tax rate cited by the tax authority is 32%, with possible special rules. A quoted-share prospectus example reports a 10% final withholding tax and exemption from stamp duty on the exchange transaction, but the current instrument, residence and legal position must be checked. Investor classification affects access and safeguards. Under Aviso n.º 3/GBM/2026, professional status can result from at least two criteria, including an average of 20 transactions per quarter over four quarters, financial instruments including term deposits worth at least MZN 30,000,000, or at least one year of work in the financial sector. Certain financial institutions, insurers, pension funds and medium-sized or large companies qualify automatically. For non-professional investors, complex or highly risky products are limited to 10% of net annual income or 10% of net financial assets. Public offers, crowdfunding and similar offers are limited to MZN 2,000,000 per year. Shares, bonds and fund units have no blanket limit, but suitability and risk checks still apply. Selection requires more than comparing a quoted price. Review the issuer, prospectus or ficha técnica, financial statements, coupon, maturity, ranking, collateral, credit quality, issue and repayment schedule, trading volume, spread, last transaction, liquidity, fees, tax treatment, currency and portfolio concentration. Treasury bonds carry government, interest-rate, inflation and restructuring risks. Corporate bonds add issuer, sector and governance risks. Shares carry price, dividend and liquidity risks. Thin trading can prevent an order from executing or make the last quoted price a weak guide to the price available today. On 9 September 2026, the MIMO rate was 9.25% and the Prime Rate was 15.50%; interest rates, inflation, MZN depreciation and refinancing conditions can change the value of investments. The 2026 BVM market snapshot recorded 11 listed companies and approximately 86.44% of market value in Treasury bonds, creating concentration and sovereign-risk exposure. A practical portfolio keeps a liquidity reserve outside investments, spreads debt maturities, and diversifies by issuer, sector, maturity, currency and liquidity. Local securities should not be treated as broad global diversification. Leverage and over-the-counter speculation are particularly risky for individual investors. A BVM listing is not a guarantee against loss, and no state protection for investment returns or market losses is evidenced. Foreign investment income, overseas accounts and capital movements are subject to Banco de Moçambique foreign-exchange rules. Depending on the transaction, banks may require prior authorization, declarations, registration, use of the national banking system or repatriation of income. Foreign brokers and assets are not automatically accessible under Mozambican rules or protected by local arrangements. The applicable requirements should be checked immediately before transferring money. Direct business investment is governed in part by Lei n.º 8/2023, which provides equal treatment for national and foreign investors and protection within legal limits. Many projects follow a registration-based regime, while large projects, public-private partnerships, concessions, projects requiring at least 10,000 hectares, forest concessions above 100,000 hectares and certain mineral or petroleum processing projects require authorization. A decision should be issued within the stated procedure, with a maximum 10-working-day period for the opinion and five days for the decision or notification. Land remains state-owned in Mozambique. An investment therefore uses a DUAT, not the purchase of land. Buildings and installations require separate checks. A foreign individual generally needs at least five years of residence and an approved investment project. A company must be incorporated and registered in Mozambique and have an approved project. Local consultation, land-use, environmental and sector licences, fees, effective use and community agreements can affect the project. Proposed land-law reforms remain drafts or consultation material and do not replace current law. Life insurance, investment-linked products, capitalization products and supplementary pension funds are supervised by ISSM, the insurance supervisor. They can provide long-term saving or protection, but they may involve contribution, management, investment, insurance, fee and surrender risks. Pension funds follow an investment policy under Diploma Ministerial n.º 261/2009 and are not equivalent to a freely tradable custody account. Xitique is a rotating savings group in which members contribute daily, weekly or monthly and receive the pooled amount in turn. ASCA, also called Poupanças e Crédito Rotativo, accumulates savings and may provide community credit. These arrangements have broad local relevance and low access costs, but they do not provide a BVM or CVM account, standardized price formation or the same legal, custody and fraud safeguards as formal securities. Virtual assets may be available, but a virtual-asset service provider requires prior Banco de Moçambique registration or authorization. Foreign platforms outside Mozambique add counterparty, cyber, wallet, compliance and recovery risks and are not equivalent to BVM securities. Investment decisions also need to account for political and security conditions, climate events such as cyclones and floods, operational and cyber risks, fraud, anti-money-laundering duties, land disputes and community rights. Complaints should first go to the intermediary or BVM and then to the competent supervisory body where appropriate. Investors must provide accurate information, pay applicable fees and taxes, comply with foreign-exchange declarations and follow the conditions attached to investment, land, environmental and community approvals.