Entrepreneurship in Mozambique

Transcription

1 Entrepreneurship in Mozambique

2 Cornelder Background Family owned business focused on maritime services and investments Founded in 1814 in Rotterdam, The Netherlands Grew to strong presence in Asia, Africa and Europe

3 Cornelder Holding Maritime & Logistics Mozambique Burger Liner Agency Burger Logistics Services Burger Ferry Burger Port Agency Burger Africa Logistics Burger Oil & Gas Collaboration with Caminhos de Ferro de Mocambique & Cornelder Holding Port Terminal Operation in the port of Beira since 1998 Sea Port for Landlocked countries Zimbabwe, Malawi, Zambia, Botswana Invests in innovative and sustainable companies, and offers consultancy services for start-ups to help them grow. Contributes to the diversification and longterm growth of the Mozambican Economy Local business services & investment support Provider of maritime ancillary services. Mechanical, technical, catering, replenishment, ship chandling, and agency services. Regional Offshore Training Centre: Accredited training center for the maritime sector.

4 Cornelder de Moçambique Collaboration between Caminhos de Ferro de Moçambique (CFM) and Cornelder Holding Port Terminal Operation in the Port of Beira since October 1998 Sea Port for landlocked countries such as Zimbabwe, Malawi, Zambia, Botswana

5 Cornelder de Moçambique Shareholders: (67%) (33%) Started: Concession: Primary Business: Terminal: Services Offered: Employees: October 1998 in Port of Beira 25 years, extendable Port Terminal Opertaion Multipurpose & Container and General Cargo Handling of Cargo, Warehousing 650 internal employees Countless employees of dedicated subcontractors Direct Call Shipping Lines:

6 Investing in Local Human Capital Intensive Training Program for staff. Operators trained using simulators & machines. All operators certified.

7 Containers Handled Who are we?

8 Port of Beira Oil & Gas Role Beira Medium-Long Term: Ideally located for Sofala & Zambezia offshore fields Beira Short Term: Complimentary Role in case of lacking capacity in northern ports. BEIRA Beira Port Facts: Largest and most efficient container Port. Largest Project Cargo & Equipment Port. Good connectivity & facilities. Professional & Capable Port Community. Capable Logistics Chains.

9 MOZAMBIQUE Conditions for a Successful Local Integration

10 Doing Business in Mozambique

11 Limited Liability Companies There are two main forms of limited liability entities available under Mozambican Commercial Law: a branch or a limited company. 1. Branches have to be registered with Ministry of Commerce and Industry. A branch is usually licensed for a specific contract. The license is valid for three years, renewable. A branch is more appropriate for short duration ventures. 2. A limited liability company. The most commonly used types of limited liability Mozambican business are: Sociedade por Quotas (Limitada = private companies), and Sociedade Anónima de Responsabilidade Limitada (SA = public companies)

12 APIEX Agency for the Promotion of Investment and Exports Created in November 2016, Substituting CPI, GAZEDA, and IPEX APIEX aims to boost the business environment, optimize resources and create greater synergies in areas that impact the country s economy. APIEX is the government body responsible for reviewing and authorizing all tax exemption requests for investment projects

13 Land Law Land is the property of the State and cannot be bought The State can issue a concession of the right to use land for a maximum period of 50 years, renewable for an equal period. This concession right cannot be used as collateral for a mortgage or as security for loans The Authorities initially issue a provisional land concession certificate, valid for a period of 5 years for a Mozambican entity, or 2 years for a foreign entity. This is handed on the basis of a development plan. Upon the termination of the provisional authorization the Authorities will issue a final land concession certificate, but only if they are satisfied that the development plan has been complied with.

14 Right of Foreigners to Land Concessions Foreign entities can apply for land concessions if they have an investment project authorized by APIEX, For individuals, once they have been resident in Mozambique for 5 years or, In case of companies, on the condition that they are incorporated or registered in Mozambique. Companies incorporated in Mozambique but are more than 50% owned by foreigners are regarded by the land legislation as foreign companies.

15 Labour Law Employment of foreign staff General regime establishes a quota system Companies with more than 100 employees 5% foreigners Companies with 10 to 100 employees 8% foreigners Companies with up to 10 employees 10% foreigners Companies with an approved investment project are not required to have working permits for their expatriate staff if stated in the investment approval. Residence permit Once the foreign individual is duly authorized to work in Mozambique, either through a work permit or work permission, he/she should apply for a residence permit.

16 Exchange Control Exchange Control Regulations apply to all contracts which imply payments to a foreign entity. These contracts must be registered with the Central Bank of Mozambique. Furthermore all service agreements that imply payments by a resident company to a non-resident company have to be previously authorized by the Ministry of Finance and then registered at the Central Bank.

17 Exchange Control Requirements for foreign investment Proof of foreign direct investment (FDI) should be registered with the Central Bank Proof of investment is required to allow repatriation of - (a) Capital invested (shareholders loans, etc), and, (b) Any profits arising from the activity from the approved investment project. Failure to register investments could result in the non recognition of the right to repatriate funds. Payables not recorded in the companies books (PGC) are also not remittable.

18 Accounting Law the PGC (1/2) Mozambican Accounting Law (Plano Geral de Contabilidade, "PGC ) codifies Mozambican Accounting principles and rules. The PGC has the following overriding provisions relating to the accounting books and records of all Mozambican entities. The records must be kept in: Mozambique, available for inspection by the authorities, The local currency (Meticais), Portuguese. The Financial Sector (Banks) must apply IFRS as of 2009

19 Accounting Law the PGC (2/2) The ledgers must comply in format with the account codes and layout stipulated in the PGC, Transactions must be recorded according to the accounting rules laid down in the PGC, All supporting documentation must be fiscally acceptable and kept in Mozambique available for inspection, Legal books, summarizing the ledgers, must be completed in the correct format NB These rules apply to the ledgers and records, not just to reporting

20 Audit Requirements Public Companies (SA) are required by law to be audited. Private Companies (Lda) do not automatically require an audit. Companies that have approval from the Agency for Investment and Export Promotion (APIEX) also require an audit. In practice, this covers most foreign investment in Mozambique. Certain other categories (e.g. Finance institutions) require audit. Note; there is no detailed audit legislation or auditing standards in Mozambique. Granting of licenses to audit is done by the Ministry of Finance. Licenses have been granted to the international audit firms operating in the country, who apply International Auditing Standards in their work.

21 Taxation Direct taxes a) Corporate Income Tax (IRPC): 32% b) Individual Income Tax (IRPS): Depends on salary c) Social Security Tax (INSS) 4% + 3% Other taxes Indirect Taxes - Value Added Tax (IVA): 17% Municipality Taxes e.g. Personal Municipal Tax: ($10)

22 Culture & Etiquette COMMUNICATION: Tend to be indirect when it comes to communicating. FEELINGS: People are usually very leery of offending others, so true feelings may not always be spoken. MEETINGS: People tend to give an affirmative answer if they think that is what you d like to hear. It is more polite to accept an invitation and not show up than to decline. TITLES & PROTOCOL are important, especially when dealing with members of the government. PUNCTUALITY is expected in most professional situations but in social situations it is not generally a priority.

23 Challenges Cultural Shock Reconciling the quota system with local content High unemployment rate, but low specific skills & job qualification, Experience Mozambique is a virgin market. New ventures, new opportunities, Investment Business continuity strategy must focus on training local content,

24 Challenges Cultural Shock Colonial rule superiority/inferiority complex Portuguese Influence, Civil war (1980), Poverty, Work ethics Industry - home production Subsistence farming Exposure to world outside vision Religion concept, values