Beluluane Industrial Park

Free Zone

A free trade zone (FTZ) or Export processing zone (EPZ) is one or more areas of a country where tariffs and quotas are eliminated and bureaucratic requirements are lowered in hopes of attracting new business and foreign investments. Free trade zones can be defined as labor intensive manufacturing centers that involve the import of raw materials or components and the export of factory products. (Wikipedia)

Requirements for Free Zone

There are three essential requirements to qualify for Industrial Free Zone status in Beluzone:

Approval of business plan by BIP-FZ and Industrial Free Zone Council
Job creation for Mozambican nationals
85% of production must be exported

Fiscal Benefits

Free Zone Enterprises enjoy the following fiscal benefits:

60% reduction on the Corporate Income Tax (IRPC) on profits for 10 years;
Duty free imports for all goods and merchandise needed for the industrial activity;
Exemption from VAT(IVA) and Specific Consumption Tax (SCT);
Exemption from real property transfer tax (SISA).

Government Guarantees Offered to Investors

Security and legal protection of investment

Freedom to import equity capital or arrange loans to carry out investments

Remittance of funds abroad in connection with

Exporting of foreign investor’s profit, payment of royalties and other charges abroad.
Loan repayments and interest charges due abroad
Any amounts paid as just and equitable compensations
Repatriation of capital invested upon liquidation of sale, total or partial of goods or rights of an investment undertaking.

Mozambique is a member of MIGA and OPIC and offers recourse to arbitration through the International Convention and Centre for Settlement of Investments Disputes (ICSID) and the Paris based International Chamber of Commerce.