IMPACT — MEDIUM

The government of Mozambique has introduced visa-free entry for nationals of 29 countries.

Key Points:

  • Nationals who hold a valid passport from 29 countries, including Canada, China, Indonesia, Singapore, South Korea, the United Arab Emirates, the United Kingdom, the United States and most of the European Union, can now enter the country without a visa.
  • Visa-free travelers can stay in Mozambique for unpaid business and tourism purposes for up to 30 days and renew their stay for an additional 30 days (subject to approval).
  • Visa-free travelers are temporarily no longer required to complete preregistration before departure; however, they must to pay 650 MZN (about US$10) upon arrival.
  • A full list of countries eligible for visa-free entry is available here.

BAL Analysis: Authorities of Mozambique have introduced visa-free entry for nationals of 29 countries to increase travel to the country. Foreign nationals should ensure they are eligible for visa-free entry or obtain an entry visa before traveling to the country. Visa-free travelers are not permitted to conduct paid business activities while in the country.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

Copyright © 2023 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.

IMPACT – HIGH

Mozambique has declared a state of emergency and made changes to visa services to mitigate the spread of COVID-19.

Key Points:

  • Entry visa issuance is temporarily suspended and all existing entry visas are cancelled.
  • Temporary work and stay visas will remain valid until June 30. Identification and residence documents of foreigners will as well.
  • Migration Services is not accepting new requests and has limited activities for delivering previously issued documents.
  • Entering and exiting the country are restricted, except for humanitarian aid, health reasons, matters of interest to the country and the transporting of goods.

Analysis & Comments: The state of emergency and visa changes will impact the movement of people into Mozambique. The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

 

 

IMPACT – MEDIUM

What is the change? Employers are reminded that a new fee schedule for visit and stay visas/ permits has taken effect.

  • Effective date: Aug. 7.
  • Documents affected: Work Visa Extension, Temporary Stay Visa, Residence Visa (DIRE).
  • Business impact: The fee increase will raise the cost of employing foreign nationals and sponsoring Temporary Stay Visas and DIRE for foreign nationals.

New fees:

Document Previously Charged Fees Updated Fees

(Normal Rate)

Updated Fees

(Urgency Rate)

Work Visa Extension for (CPLP) 16,680 MZM 33,760 MZM 39,080 MZM
Work Visa Extension (Other Nationalities) 16,680 MZM 33,760 MZM 39,080 MZM
Temporary Stay Visa (CPLP) 16,680 MZM 33,760 MZM 39,080 MZM
Temporary Stay Visa (Other Nationalities) 16,680 MZM 33,760 MZM 39,080 MZM
DIRE (CPLP) 14,400 MZM 29,310 MZM 39,080 MZM
DIRE (Other Nationalities) 19,200 MZM 33,760 MZM 39,080 MZM

Analysis & Comments: The fee increases are significant, up to 103% for certain visa categories, and companies should factor the changes into their budgets.

Source: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? Mozambique is experiencing application processing delays for work permits, work visas and residence permits.

What does the change mean? The delays, which can be three weeks or longer, are in part due to a recent influx of foreign nationals. Authorities have also begun sending some applications that were previously approved at consular posts to Mozambique’s central immigration authority in Maputo.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affected: Work permits, work visas and residence permits.
  • Who is affected: Employers and foreign nationals seeking work permits, work visas or residence permits.
  • Impact on processing times: Processing times will vary depending on the home country and type of application, but some applications have been delayed by three weeks or longer.

Analysis & Comments: Employers should anticipate delays in the processing of work permits, work visas and residence permits. Businesses may need to adjust time lines or start dates.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What are the reminders? Employers are reminded that important deadlines for submitting annual mining activity reports and employee lists are approaching.

February deadline for mining sector. All companies operating within the mining industry, including titleholders of mining concessions, exploration licenses, mining certificates or mining processing licenses, must submit their annual activity report to the National Institute of Mines by Feb. 28. The report, which must be submitted in both hard and electronic forms, must list all activities performed in 2018. It must be in Portuguese and formatted in accordance with Mozambique’s Mining Law.

  • Implementation time frame: Reports must be submitted no later than Feb 28.
  • Who is affected: All Mozambican employers operating within the defined scope of the country’s mining industry.
  • Business impact: Mining operations can only be carried out legally under a valid license or permits granted by the government.

April deadline for all employers. All employers are reminded to submit their annual Mozambican Company Employee List (known as the Relação Nominal) to the Ministry of Labor between April 1 and April 30. The list must include all employees—both Mozambican and foreign nationals—who are employed by the company as of March 31. Employers who do not submit their annual list to the ministry by April 30 will be deemed noncompliant.

  • Implementation time frame: The filing period opens April 1 and closes April 30.
  • Visas/permits affected: Long-term work permits.
  • Who is affected: All Mozambican companies.
  • Business impact: Noncompliant employers will not be able to obtain new long-term work permits or renew existing ones until the necessary corrective action is taken.

Analysis & Comments: Employers should review annual reporting requirements in Mozambique to ensure compliance in all aspects of operations. To continue operating in Mozambique, companies that hold mining concession titles are required to submit both a hard and an electronic copy of the report no later than Feb. 28. Additionally, employers in all sectors should be prepared to submit their employee lists in April. Those who fail to comply with this requirement risk being deemed noncompliant by the ministry, resulting in suspension of work-permit privileges.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

Medium Priority

What is the immigration news? The National Migration Service is strictly enforcing rules requiring foreign nationals to report changes to their circumstances and has begun levying fines against those who fail to meet the mandatory reporting requirement. Foreign residents are reminded that they have a duty to report changes to their home or work address, as well as to their nationality or marital status, among other personal changes, as well as any absences from Mozambique that exceed 90 days.

Key points:

  • Deadlines: Immediate and ongoing.
  • Who is impacted: Foreign nationals living and working in Mozambique.  
  • Impact on employers: Foreign employees are subject to fines for not reporting relevant changes. Failure to report a change of address incurs a fine of 1,000 meticals (about US$16.50) per month. Failure to report change of ID details incurs a fine of 1,000 meticals per day.
  • What to watch: Any changes that are covered by the duty to report should be immediately communicated to the National Migration Service.

BAL Analysis: To avoid penalties, foreign nationals and their employers should make sure that any relevant changes to their personal or employment details, and absences from Mozambique exceeding 90 days, are reported to the National Migration Service.

This alert has been provided by the BAL Global Practice group and our network partner in Mozambique. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Minimum wage rates will increase between 6 and 18 percent in most sectors of Mozambique’s economy.  

What does the change mean? Companies are now subject to the new, higher pay thresholds. They will also see an increase in work permit application fees, which are tied to industry-sector minimum wage rates.

  • Implementation time frame: The new minimum wage rates were announced Monday and take effect immediately.
  • Visas/Permits Affected: Short-term and long-term work permits.
  • Who is Affected: Employers and foreign nationals applying for short-term or long-term work permits or work permit renewals.
  • Business Impact: Businesses must make sure they are in compliance with the new wage rates. The wage hikes will also increase the costs of applying for work permits.

Background: Mozambique does not have a single minimum wage, but instead sets wage thresholds by economic sector. Below is a look at wage increases in key industry sectors for 2018 (all figures in Mozambican meticals).

Industry-Sector 2017 2018 Increase
Mining Extraction (Large Enterprises) 6,963 MZN 8,263 MZN 18.7 percent
Small Mines/ Quarrying/Sand Mining 5,201 MZN 5,800 MZN 11.5 percent
Salt Mining 4,734 MZN 5,018 MZN 6.0 percent
Manufacturing – General 5,965 MZN 6,620 MZN 11 percent
Building/Construction 5,436 MZN 5,787 MZN 6.4 percent
Financial Services – Banks & Insurance Companies 10,400 MZN 11,898 MZN 14.4 percent
Financial Services – Microfinance Companies 8,400 MZN 9,240 MZN 10.0 percent
Non-Financial Services 5,525 MZN 6,250 MZN 13.1 percent
Electricity, Gas and Water (Large Companies) 7,256 MZN 7,796 MZN 7.4 percent
Electricity, Gas and Water (Small Companies) 6,002 MZN 6,422 MZN 7.0 percent

BAL Analysis: Employers should factor the new minimum wages into their budgets for foreign national employees, especially because work permit application fees are tied to minimum wage rates.

This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? President Filipe Nyusi of Mozambique and President Uhuru Kenyatta of Kenya have agreed to abolish visas for business visits between the two countries.

What does the change mean? The removal of visas is intended to facilitate business travel and strengthen economic exchange.

  • Implementation time frame: Immediate.
  • Visas/permits affected: Visitor visas.
  • Who is affected: Nationals of Mozambique and Kenya traveling between the two countries.
  • Business impact: Business travelers will not need to apply for a visa before travel, enabling them to save time and travel on short notice.

Background: The two leaders met in Maputo Thursday and announced the new mutual visa policy with the aim of easing travel and trade. They also discussed increasing the number of flights between the two countries. Since his re-election in November, Kenyatta has taken steps to liberalized visas and work permits for countries in the region.

BAL Analysis: The visa waiver is good news for Mozambican and Kenyan business travelers and is consistent with the African Union’s stated goal to move toward a visa-free Africa.

This alert has been provided by the BAL Global Practice group in Mozambique. For additional information, please contact africa@bal.com.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Mozambique’s General Labor Inspectorate has suspended the activities of seven companies and 80 illegal foreign employees because they either did not comply with working condition requirements or with immigration laws.

What does the change mean? The suspensions are a reminder to all employers in Mozambique to make sure that they are complying with immigration laws and that foreign employees have valid and appropriate work authorization.

The suspensions coincide with Mozambican Interior Minister Basilio Monteiro’s call to root out corruption in the Mozambican National Migration Service. The service’s general director, Arsenia Massingue, acknowledged the existence of corruption in the organization, stating that there were officials who solicited and accepted bribes and extorted money from applicants and Mozambican citizens.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: Work permits.
  • Who is affected: Companies employing foreign nationals.
  • Business impact: Businesses risk serious consequences if they are found to be violating work permit regulations. Employers may be fined for employing a worker without a work permit if one is required, and repeat offenders may have their facilities closed. Fines are determined on a case-by-case basis, depending on the type of violation. In addition, the government will publish the details of noncompliant companies and foreign workers in the local media. Foreign nationals working without a work permit may be fined and are frequently deported.
  • Next steps: Employers should review procedures to make sure they are complying with the law and are prepared for an audit by authorities.

Background: The National Migration Service intensified its employer audits last year to identify and repatriate foreign citizens working in Mozambique illegally. In March, the Labor Inspectorate of Maputo levied a fine of almost 7 million meticais (about US$110,000) against the Maputo International College for employing 34 foreign workers, including directors, teachers and accountants, who lacked the proper work authorization.

BAL Analysis: The General Labor Inspectorate’s enforcement indicates that the government is continuing to crack down on abuse of the work permit system. Businesses are reminded that labor authorities are authorized to conduct inspections, suspend workers and levy significant fines against organizations that employ foreign nationals without proper work authorization. Employers are encouraged to conduct an internal compliance review and to ensure they follow the health and safety requirements for their work sector. The minister’s call to end corruption in the National Migration Service may affect the delivery of immigration services if investigations or procedural changes occur.

This alert has been provided by the BAL Global Practice group and our network provider located in Mozambique. For additional information, please contact africa@bal.com.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? The Labor Inspectorate of Maputo has levied a fine of almost 7 million meticais (about US $110,000) against Maputo International College for employing 34 foreign workers, including directors, teachers and accountants, who lacked the proper work authorization.

What does the change mean? The fines are a reminder to all employers in Mozambique to make sure that they are in compliance with immigration laws and that foreign employees have valid and appropriate work authorization.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: All visas and work permits.
  • Who is affected: Companies employing foreign nationals in Mozambique.
  • Next steps: Employers are encouraged to conduct an internal compliance review.

Background: The Maputo Labor Inspectorate announced the fine against recently opened Maputo International College after it suspended 34 foreign employees of the school for working without the proper work permits in violation of regulations governing the hiring of foreign nationals.  The employees included staff members of various nationalities including Cameroon, Ghana, Lebanon, the Philippines and Zimbabwe.

BAL Analysis: Businesses are reminded that labor authorities are authorized to conduct inspections, suspend workers and levy significant fines against organizations that employ foreign nationals without proper work authorization.  

This alert has been provided by the BAL Global Practice group. For additional information, please contact africa@bal.com.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.