NEWS

Published in furtherafrica.com

On 1 September 2021, Mozambique approved the new Regulation regarding the sale of diamonds, precious metals, and gemstones (Decree no. 63/2021), which revoked the previous Regulation (Decree 25/2015) and applies to operations of research and production performed under mining authorizations, and to the sale and acquisition of diamonds, precious metals, and gemstones, establishing the conditions for the exercise of activities as the import, export, transportation, and commercialization of such products.

The main rules foreseen in this Regulation, are:

• The commercialization of the diamonds, precious metals, and gemstones may be performed only by Mozambican companies;
• Any operation regarding research, production, or commercialization of these products may be performed only by duly authorized entities, which shall also be registered in the Ministry of Natural Resources;
• The request regarding a Commercialization License shall be decided in 60 days after the application;
• Commercialization Licenses are valid for 5 years, and may be renewed by the same period if the licensed fulfilled some requirements, as the compliance with all the obligations imposed by the license and the presentation of a report regarding the activities performed during the five years;
• License renewal must be requested at least 60 days before its expiration;
• The licensed entity shall inform annually the sale operations performed in each year;
• The Commercialization License may be transferred to another holder, with the authorization of the Minister who supervises the sector;
• Commercialization Licenses may be revoked by the Minister who supervises the area, when i) the licensed breaches any rules foreseen in the mining laws and regulations, ii) the licensed is condemned by certain crimes, iii) is not paid the annual commercialization tax, iv) the licensed is involved in illegal commercialization acts or has given false information to obtain the license;
• Exports and imports of such products shall be performed through trading posts approved by the Government;
• Exports of rough diamonds, precious metals, and gemstones need to be authorized by the Kimberley Procedure,
• Precious Metals, and Gemstones Management Unit through the Kimberley Procedure Certificate, which is valid for 60 days;
• The Kimberley Procedure Certificate for diamondsshall be approved or denied within three workdays after the request; for precious metals and gemstones, the decision is due in five workdays;
• Mining operators shall register the possession of diamonds, precious metals, and gemstones or have the declaration of sale issued by the Kimberley Procedure Management Unit, or they may be apprehended and revert to the State;
• Holders of Commercialization Licenses have 90 days from the publication of the present Regulation to comply with their new duties according to the new legislation;
• Were forbidden some behaviors and foreseen sanctions to those situations, as in case of import without the necessary authorization or false information to the inspecting authorities;
• Any production or transaction of rough diamonds shall be communicated to the Kimberley Procedure Management Unit, and its export shall be authorized by this entity.

With this new Regulation, Mozambique intends to update its legislation according to the sector international recommendations and best practices.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialised in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal. Through this Simplification Project, Angola shows to investors and economic players that intends to maintain its bet on the internal and external investment; on other hand, it is important to note that this simplification procedure is only at its beginning and is expected a wider range of facilitation in multiple public administration proceedings and regarding more sectors of the economy.

Published in furtherafrica.com

To do so, the entities must access the AGT Online Portal, fill in the information regarding the remuneration of each employee, submit the map and the Integrated Tax Management System (SIGT).

After that, the AGT Online Portal will automatically calculate the amount of IRT payable, and it will generate the Settlement Note with the remuneration schedule and the respective Settlement Receipt.
With this procedure, the employees who are holders of this tax can consult the movements in their current account.

The entities, until December 31st, will continue to have available the settlement and payment of IRT, through revenue classifier A12. After this deadline, the settlement of the IRT – Group A, will be done exclusively through the Portal or by contacting a Tax Office.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialised in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal. Through this Simplification Project, Angola shows to investors and economic players that intends to maintain its bet on the internal and external investment; on other hand, it is important to note that this simplification procedure is only at its beginning and is expected a wider range of facilitation in multiple public administration proceedings and regarding more sectors of the economy.

Published in furtherafrica.com

The ICSID Convention entered into force in 1966 and aims to promote investment and globalization by allowing investors to benefit from a neutral, fast, and efficient means of alternative dispute resolution that allows for the definitive resolution of any disputes that may arise between the State and investors.

The adhesion of the ICSID Convention and the recent ratification of the New York Convention on the Recognition and Enforcement of Foreign Arbitral awards are big steps in the foreign investment attraction policies that Angola has been implementing, thus guaranteeing an increasingly stable and secure investment environment in the country.

Following the adhesion, Angola must regulate the form in which access to the ICSID Convention jurisdiction is provided since Angola has three alternatives to consent:

– In the Bilateral Investment Treaties;

– Directly through the national investment law;

– In the investment contracts to be entered into with foreign investors.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialised in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal. Through this Simplification Project, Angola shows to investors and economic players that intends to maintain its bet on the internal and external investment; on other hand, it is important to note that this simplification procedure is only at its beginning and is expected a wider range of facilitation in multiple public administration proceedings and regarding more sectors of the economy.

Published in furtherafrica.com

The event was attended by various speakers with responsibilities in the Oil & Gas industry, such as the Angolan minister in charge of this area and his counterparts from Turkey, the Democratic Republic of Congo, the Republic of Congo, and Equatorial Guinea, countries which have projects in common with Angola. Alongside the Minister were important personalities in the area, both at governance and technical level, representing the active business forces operating in Angola.

Several relevant topics were discussed, allowing for a deepening of ideas on issues such as cross-border cooperation, post COVID-19 development, exploration promotion policies, increasing competitiveness, energy transition plans, the development of refining capacities, and the evolution of the local content.

During the panels, it became clear the role that clean energies have been having in the companies of the sector, and it is expected that it will occupy an increasingly larger space. In general, operators stated that they will not turn back on any source of energy, focusing as main objectives the reduction of emissions, the search for new resources, the minimization of environmental impacts, the increase of efficiency, and the growing concern with the industry’s human capital.

SONANGOL was also present at this conference and presented its objectives: Intensify the activity to increase reserves and increase the production of hydrocarbons in a medium long term, restructure the company to turn to a more competitive and profitable company, increase the capacity of the infrastructures in Luanda, Cabinda, Lobito and Soto and, adapt Sonangol to enter in the renewable energy market.

SOMOIL, in turn, listed its medium-long term focus on eliminating serious incidents, in the relentless focus on efficiency and cost reduction, and on launching somoil distribution.

The conference also had moments of networking allowing the attendees to exchange experiences and create business opportunities.

Article by Duarte Marques da Cruz

Duarte Marques da Cruz Duarte Marques da Cruz is partner of the Portuguese law firm MC&A, specialised in international business advisory, with a special focus in Lusophone markets. With extensive experience in the Energy sector (Renewables and Oil & Gas) and in International Taxation, he has supported international companies in major upstream, midstream transactions and projects, including in implementing, exploration and development programs. Duarte has also supported international clients in other areas of practice, namely, Mining, Transport & Logistics, Regulatory Compliance and Mergers & Acquisitions in Mozambique, Angola and Portugal. Through this Simplification Project, Angola shows to investors and economic players that intends to maintain its bet on the internal and external investment; on other hand, it is important to note that this simplification procedure is only at its beginning and is expected a wider range of facilitation in multiple public administration proceedings and regarding more sectors of the economy.

Newsletter MCA – VAT MOSS

Published in furtherafrica.com

The government’s proposal includes the modification of five provinces (Cuando-Cubango, Lunda Norte, Malanje, Uíge and Moxico), being each one separated in two or three different provinces, and is based on the conclusion that the actual organization of these provinces is not suited nor adequate to the efficient management of the territory and fulfillment of the collective needs.

With this reorganization, the Government intends to benefit the governmental action, mitigate asymmetries between eastern and western provinces, promote economic and social growth, approximate governmental and administrative bodies to the population, and develop the national territory with greater harmony, balance and fairness.

The new administrative division was proposed by the Multisectoral Commission for the Modification of the Political-Administrative Organization, created by President João Lourenço and which includes some Ministers and Province Governors. The public hearing will be in force until September 17 and may be performed via a form available in www.dpa.gov.ao.

The new State Budget is already being prepared considering the possibility of having this structural modification in Angola, with financial resources that will make possible the transition and implementation of new administrative bodies in each new province, and will also be used to invest in social and state infrastructures, what will contribute for the development of such territories.

With this reform, it is also expected that each new province receives big investments in many sectors, fostering economic activity and generating more private and public work opportunities.

Article by Marco Correia Gadanha

Marco Correia Gadanha is a partner of the Portuguese law office MC&A. He is specialized in legal advice to international transactions. Marco has extensive experience of legal practice in Portugal and in the Portuguese-speaking African countries. Since 2008, he has practiced mainly in the areas of labor and litigation, assisting national and international clients in these and other matters, namely corporate law, especially in Portugal, Angola and Mozambique. He graduated at the University of Coimbra in 2005 and he holds post-graduations in Labor and Angolan Law.