Documentation in PDF DDI/XML JSON. Foreign Direct Investment and Foreign Portfolio Investment Statistics, http://www.transparency.org/research/cpi/overview, https://www.globalinnovationindex.org/analysis-indicator, https://apps.bea.gov/international/factsheet/, Country Reports on Human Rights Practices, Guidance on Implementing the UN Guiding Principles for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities, North Korea Sanctions & Enforcement Actions Advisory, Findings on the Worst Forms of Child Labor Report, List of Goods Produced by Child Labor or Forced Labor, Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World, Host Country Gross Domestic Product (GDP) ($M USD), U.S. FDI in partner country ($M USD, stock positions), Host countrys FDI in the United States ($M USD, stock positions). Avenida 10 de Novembro, 193 Unemployment insurance does not exist and there is not a social safety net program for workers laid off for economic reasons. Efforts are now underway to extend the drainage system and implement further coastal protection works in Beira, which other Mozambican cities now sometimes consider the fortunate one in terms of the attention it has received from international donors. Climate variability is already affecting Mozambique. Mozambique has a tropical to sub-tropical climate and experiences two seasons: a cool and dry season from April to September and a hot People in cities often work in informal trade. None of Mozambiques facilities are carrier neutral and they do not host individual servers. SOE debt represents a potentially significant liability for the GRM. Joining ARIPO paved the way for Mozambique to implement the Banjul Protocol and the government deposited its instrument of accession to the protocol at ARIPO in May 2020. Implementing regulations were approved by the Council of Ministers in 2012. But livelihood prospects are limited at the sites, which often lack basic services. Investors have complained that certain government officials may not be aware of some of the benefits conferred by tax free status, in particular related to customs and duty-free imports. The Council of Ministers approved regulations for the SOE law in early 2019, and in 2020 the Ministry of Economy and Finance published limited information on SOE debt. To limit global warming to 1.5C and avoid the worst consequences of climate change, there is only so much more CO 2 the world can emit. Electricity and heat Other energy industries. The government limits the number of expatriates a business can employ in relation to the number of Mozambican citizens it employs. Notably, at the summit, the Biden administration announced the launch of a Global Climate Ambition Initiative in which the U.S. will support developing countries in establishing strategies and policies to fight against climate change and mobilizing financing to drive the net-zero transitions and adaptations to climate changeall initiatives that could potentially help Africa. Mozambiques SOEs have their origin in the Marxist-Leninist government established after independence in 1975, with a variety of SOEs competing with the private sector in the Mozambican economy. The IMFs Coordinated Direct Investment Survey results for 2019 track loosely with the FDI reported by APIEXwith both sources listing South Africa, Mauritius, Portugal, and the United Arab Emirates (UAE) among Mozambiques top five foreign investors. Mozambique is not included in the United States Trade Representative (USTR) Special 301 Report or the Notorious Markets List. Avenida Kenneth Kaunda, 193 Support our journalism and become more involved in our community. They analyze a variety of economies that are or could be markets for U.S. businesses. Mozambiques National Inspectorate of Economic Activities (INAE) has increased seizures, confiscating fake Hewlett-Packard (HP) toner cartridges, Nike, Adidas, Ralph Lauren, and other falsely branded merchandise in several raids in 2019. Agency for Promotion of Investments and Exports We still don't have resources to create committees in those camps, Correia said. In 2020, CACM handled 38 cases of commercial arbitration, and 24 additional cases are in process. A surging terrorist movement in the same northern province that is home to Mozambiques nascent natural gas industry has also delayed expected investment. Banking sector profits have dropped by 2 percent due to the reduction of prime lending rates, costs of rehabilitation of branches and property damage from cyclones Idai and Kenneth, and reduced commission income following new Central Bank legislation limiting charges for certain services to promote financial inclusion. According to 2019 FinScope data, 21 percent of the population has access to a bank account, still well below the countrys 2022 target of 60 percent. Limits on Foreign Control and Right to Private Ownership and Establishment. In June 2005, the two countries signed a Trade and Investment Framework Agreement (TIFA), establishing a Trade and Investment Council to discuss bilateral and multilateral trade and investment issues. Thank you for agreeing to provide feedback on the new version of worldbank.org; your response will help us to improve our website. Were able to continue doing this thanks to the support of our donors and readers like you who believe in the power of independent journalism. By WANJOHI KABUKURU July 27, 2022. For example, Ports and Railways of Mozambique (CFM, Portos e Caminhos de Ferro de Moambique) offers concessions for some of its ports and railways. U.S. businesses are poised to play a key role in this countrys transformation. Bilateral Investment and Taxation Treaties, 12. The United States designated the Islamic State in Mozambique (ISIS-M) as a Foreign Terrorist Organization and Specially Designated Global Terrorists in March 2021. There are also 1,697 banking agents in the country that provide basic banking services to customers without access to a bank branch. Email: cpinfo@infopol.gov.mz. There has been no update to the law since the introduction of provincial-level State Secretaries with the new government in 2020. Distance is another problem. ENH typically owns up to 15 percent of shares in oil and gas projects in the country. Mozambique was the largest recipient of DFC support in Africa in 2020, with the announcement of a USD 200 million loan for the development of a new gas-fired power plant in central In June 2019 the United States and Mozambique signed a Memorandum of Understanding (MOU) on Commercial Relations and Developing and Implementing Priority Projectsthe first ever negotiated. Specifically, the reports states, by adding pressure to already strained environmental and economic systems, climate change exacerbates resource competition, intercommunal grievances, state fragility, and other vulnerabilities. For example, according to the United Nations, roughly 80 percent of the Sahels farmland has degraded due to climate change, adding to the existing herder-farmer conflicts competing decreasing amounts of grazing land. Despite enforceable laws and regulations protecting Intellectual property rights (IPR) and a relatively simple registration process, it remains difficult for investors to protect their IPR in Mozambique. In fact, on Tuesday, thousands of people took to the streets in Chad to protest the countrys recent political developments, criticizing the transitional military council and calling for immediate civilian rule. Part one looks at the countrys early warning system; part two delves into flood defence projects in Beira; part three analyses resettlement initiatives; and part four takes stock of climate-resilient construction efforts. But the houses are expensive to construct and most residents remain in makeshift tents and mud huts. implementation of their national climate targets, the World Bank Climate Policy Team (WBCPT) has reviewed all developing countries (I)NDCs' submitted to the UNFCCC. APIEX assists investors in finding land for development and obtaining appropriate documentation, including agricultural land. Mozambique is a member of the Southern African Development Community (SADC). Mozambiques civil society and journalists remain vocal on corruption-related issues. Based on these, WFP has partnered with the Government of Mozambique to develop tools and systems to better monitor and forecast drought events, while also establishing forecast-based triggers that can be linked to contingency finance and plans that can incite early action and preparedness. In 2019, Mozambique was the most affected country world-wide by the impacts of extreme weather events. In related news, on Tuesday, April 27, the U.S. House of Representatives Foreign Affairs Committee held a hearing on the effects of climate change in Africa, wherein a number of expert witnesses highlighted that immediate attention is needed to address the issues. Will you take two minutes to complete a brief survey that will help us to improve our website? According to the World Banks estimates, this process takes approximately 17 days. Each committee has 18 members who use bicycles to reach communities and megaphones to transmit warnings. U.S. Embassy Maputo Maputo, October 15, 2021Mozambique has become the first country to receive payments from a World Bank trust fund for reducing emissions from deforestation and forest degradationcommonly known as REDD+.. According to the WTOs 2017 Trade Policy Review of Mozambique no specific trade concerns have been raised about Mozambiques TBT measures in the WTO TBT Committee. Still, those parts of Beira not covered by the system were hit hard by the flooding, while defences did not prevent catastrophic damage created by the winds, which reached more than 200 kilometres per hour. The impacts of climate change are spilling over and adding to the existing instability in regions by increasing food insecurity, conflict, and displacement, according to a report released this week by the Africa Center for Strategic Studies. C2.5. While an average change in precipitation is primarily due to circulation changes, extremes are much more sensitive to the thermodynamic state and conditions during specific days. Rua da Imprensa, 332 (ground floor) With the exception of a few sectors related to national security, all business sectors are open to foreign investment. 43/2009 replaced earlier amendments from 1993 and 1995, providing new regulations to the Investment Law. The whole process takes time: Despite procuring fish in December 2020, they were still growing when The New Humanitarian visited Savane in April. Climate change is a global issue, of which the worlds poor often bear the heaviest burden. Although a violent splinter groups leader remains at large, a significant drop in the number of attacks on road transport along major highways in Manica and Sofala provinces has occurred in early 2021. and construction Transport. Overall fiscal transparency in Mozambique is improving in the wake of the 2016 hidden debt crisis which saw the government own up to contracting over USD 2 billion dollars in secret loans in 2013 and 2014. This page presents a high-level insight into extreme events and how extreme events differ from mean climate. While the country only contributes 0.1 - 0.2 percent to global emission, It takes an average of 90 days to issue a land title for most of the concessions. The port city of Beira is the second largest in Mozambique. The council subsequently banned protests, citing a period of mourning for the former president, and violent confrontations between security forces and the protesters ensued. For disputes between U.S. and Mozambican companies where a BIT violation is alleged, recourse via the international Alternative Dispute Resolution may also be available. It also does not restrict domestic investors from investing abroad. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. 482 0 obj <>stream Over 736,000 people have been impacted by Cyclone Gombe alone and nearly 130,000 people were displaced as a result. An employee fired with cause does not have a right to severance, while employees terminated without cause do. Through APIEX, investors can receive exemptions from some customs and value-added tax (VAT) duties when importing Class K equipment, which includes capital investments. To ensure sustainable economic growth, Mozambique is committed to increasing production, productivity and employment through the implementation of structuring projects: (i) Exploration Thank you for participating in this survey! At the foot of the main channel is a retention basin that holds up to 170,000 cubic metres of excess water. Your feedback is very helpful to us as we work to improve the site functionality on worldbank.org. Private sector organizations work with various government entities on an IPR taskforce to combat IPR infringement and related public safety issues stemming from the use of counterfeit products, but enforcement in Mozambique remains sporadic and inconsistent. The (I)NDC Content Available credit instruments include medium and short-term loans, syndicated loans, foreign exchange derivatives, and trade finance instruments, such as letters of credit and credit guarantees. Please also join Brookings on May 7 for a virtual expert discussion on the latest developments in Chad, as well as the regional implications and deeper policy dilemmas of counterterrorism, stabilization, and good governance. Mozambique hosts more than 29,000 refugees and asylum-seekers, while more than one million people remain displaced The storm water drainage system has been rehabilitated, resulting in a 70% reduction in the risk of flooding. We face big challenges to help the worlds poorest people and ensure that everyone sees benefits from economic growth. In addition to the government operated Maluana Park and Teledata centers, Mozambique hosts three data centers: SEACOM, Webmasters, and Eduardo Mondlane University. virtual expert discussion on the latest developments in Chad, The death of Chadian President Idris Dby Itno threatens stability in the region, Brookings experts comment on Bidens climate summit, U.S. agreed to reduce carbon emissions by 50 percent, worlds poor often bear the heaviest burden, adding to the existing instability in regions, by adding pressure to already strained environmental and economic systems, climate change exacerbates resource competition, intercommunal grievances, state fragility, and other vulnerabilities, roughly 80 percent of the Sahels farmland has degraded, Taking action since Hurricane Sandy: Preparing a climate-ready workforce before the next storm hits, Finance for climate action: Scaling up investment for climate and development. * Source for Host Country Data: National Statistical Institute (INE, Instituto National de Estatistica), 2019 Annual Statistics published November 2020. http://www.ine.gov.mz/estatisticas/estatisticas-economicas/contas-nacionais/anuais-1 ; APIEX. ; Climate change damages, while being signifi cant, are not, on their own, suffi cient to outweigh economic development 466 0 obj <>/Filter/FlateDecode/ID[<842712E447E0EA4383D2D55D63C1EDDA><4FDD2E9E2D04694489C57BB55EC5AF8C>]/Index[443 40]/Info 442 0 R/Length 104/Prev 624175/Root 444 0 R/Size 483/Type/XRef/W[1 2 1]>>stream 1,500 people died as a result. Mozambique is among the most adversely affected countries globally by climate related hazards such as cyclones, tropical storms, floods and drought. WFP has invested in a growing body of evidence on the impact of climate change in Mozambique. Mozambiques adhesion to ARIPO should facilitate filing trademarks as ARIPO processes are standardized across all member states and valid across all jurisdictions. The2021Central BanksAviso 6/GBM/2020 requires at least30percent of export proceeds to be converted into local currency. Since the military council took over, FACT and the countrys political opposition have resisted the move, calling the takeover a coup, but have said they are open to negotiations: FACT spokesman Kingabe Ogouzeimi de Tapol recently stated, FACT is ready to observe a ceasefire for a political settlement that respects the independence and sovereignty of Chad and does not endorse a coup detat. Meanwhile, the military council has announced it will not negotiate with the group: On Sunday, spokesman for the military council, Azem Bermandoa Agouna, stated, They are rebels, which is why we are bombing them. UNHCR scales up its multi-actor approach to climate action into regular programming and partnerships, working closely with a range of stakeholders, including the Government, humanitarian and development actors to ensure that the protection and participation of forcibly displaced people and their hosts are at the centre of anticipation, preparedness and response, both regarding humanitarian life-saving action and when building solutions and resilience for future shocks. Mozambique: Climate Action Fact sheet - November 2022. Still, the overwhelming majority of people across the region are living in poorly built houses with roofs pinned down with bricks and tyres. The meeting touched on cooperation in the field of environment and combating climate change, in light of Mozambiques membership in the Agriculture Innovation Mission for Climate (AIM for Climate) co-led by the United Arab Emirates and the United States which was announced in 2021. In what follows, we explore four aspects of Mozambiques climate crisis response, examining both their successes and limitations. 03 / Select Countries You can add more than one country or area. CIP finds that many local businesses are closely linked to the government and have little incentive to promote transparency. As 70 percentof the population depend on climate-sensitive agricultural production for their food and livelihoods, increased frequency and intensity of storms, droughts and floods are likely to pose pressure on agricultural income undermining 25 percentof the countrys economy, 70 percentof livelihoods, as well as the food and nutrition security of the whole country. The United States-Mozambique Bilateral Investment Treaty (BIT) went into force on March 3, 2005. In 2019, Mozambique was hit by Cyclone Idai. Our award-winning stories inform policymakers and humanitarians, demand accountability and transparency from those meant to help people in need, and provide a platform for conversation and discussion with and among affected and marginalised people. After losing so much over the past two years, Sardinha said she was grateful to God for the house which can accommodate an average family of five and to the organisations that helped her. Mozambique investment law and its regulations generally do not distinguish between investor origin or limit foreign ownership or control of companies. If the investment (national or foreign) occupies an area of 10,000 hectares or an area superior to 100,000 hectares for a forestry concession, or it amounts to more than USD 225 million, the project must be approved by the Council of Ministers. Work permits for foreigners cost approximately USD 370 and take at least one month to be issued. Everyone has to fight a war to stay here on Earth., An independent reporter based in Kenya and reporting across Africa. Economic Assistant The process to award land concessions is not transparent and the government at times has granted overlapping land concessions that often require lengthy negotiation to resolve. Laws and Regulations on Foreign Direct Investment. 30vC cle0 {/ Sustenta aims to integrate small holder farmers into robust supply chains to create up to 200,000 jobs and boost annual growth in the critical agricultural sector from 2.3 percent to 5 percent. The challenge is to be able to enter [them] into the system.. Government participation varies depending on the company and sector. Thanks to the partnership between mobile communications companies and banks for electronic or mobile-money transactions, access to financial services is improving. Project ID: P128434 Global data and statistics, research and publications, and topics in poverty and development. Roads were blocked, children couldnt attend school, and diseases began spreading, Cu added. Finalised in late 2018, the drainage rehabilitation works implemented by Mozambiques Water and Sanitation Infrastructure (AIAS) in cooperation with the Beira municipality is considered a success in the areas it covers, according to Bontje Marie Zaengerling, an urban specialist at the World Bank who worked on the project. You can add more than one country or area. But the upfront cost of fish farming can be difficult to shoulder, he added. The MOU includes a list of projects in the following industries: energy, infrastructure, financial services, agri-business, tourism, and fisheries. The government passed a labor regulation in 2016 strengthening the requirement for employers to devise a skills transfer program that trains Mozambican nationals to eventually replace the foreign workers. Belgium, together with Mozambique, will examine how critical infrastructure such as roads, water and electricity supplies can be made climate-resistant. Given the challenges to the LNG project, the company suspended its contract under force majeurea provision that allows parties to suspend or end contracts because of events that are beyond their control, such as wars or natural disasters. By suspending their contractual obligations to gas buyers, construction companies, lenders, and the Mozambican government, Total hopes to protect the project in the long term and resume once the security conflict is resolved. But when another cyclone struck earlier this year, the small property was not so lucky. borgesfaduco@gmail.com. Many SOEs benefit from state subsidies. Through the Mozambique Cities and Climate Change Project, funded by $120 million IDA credit, the city has strengthened its resilience to weather-related hazards. And even when committee members reach villages, residents may often be working in their fields. Some residents of resettlement sites praised the initiative for removing them from harm's way. gabinetecorrupo@yahoo.com.br, Borges Nhamirre During project development, investors must document their community consultation efforts related to the project. But the initiative has detractors too. (Ed Ram/TNH). Tens of thousands of people from high-risk villages were relocated to resettlement sites on safer ground after Idai struck. APIEX has the authority to approve any project between roughly USD 25 million USD 40 million. We [also heard] from the neighbourhood secretary, who walked around the area and went to houses to talk about it, he said. Manuf. The GRM ratified the Trade Facilitation Agreement (TFA) in July 2016 and notified the WTO in January 2017. Sign up to receive our original, on-the-ground coverage that informs policymakers, practitioners, donors, and others who want to make the world more humane. As of April 2021, the government is currently revising the proposal and aims to put forward a formal legislative proposal by the end of the year for review and approval by Mozambiques National Assembly. 23/2007, companies with 10 employees or fewer can employ no more than 10 percent expatriates (effectively one person in a 10-person company), companies with 11-100 employees may employ up to 8 percent expatriates, and large companies with over 100 employees may employ no more than 10 percent expatriates. Corruption is a major concern in Mozambique. The Government of Mozambique (GRM) joined the Extractive Industries Transparency Initiative (EITI) in May 2009. 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