Zaida Kathrada (ZA)

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Consequences of shareholders’ loans in Mozambique

By Zaida Kathrada (ZA) on March 18, 2018 Posted in Banking, General

The Mozambican commercial code provides that a loan with a maturity of 1 year or more, made by a third party who later becomes a shareholder of the borrower via equity subscription, becomes a shareholder loan. This has enforcement consequences for the lender, subordinates the loan and affects set-off because of the connection between the … Continue reading

The Mozambican Insolvency Law

By Zaida Kathrada (ZA) on October 20, 2015 Posted in General

Restructuring of companies in financial distress is on the increase globally. In line with this trend, Mozambican Insolvency Law (Decree law No 1/2013) provides greater protection to debtor companies in financial distress and gives them an opportunity to reorganise and restructure while continuing to operate their businesses. The law covers three procedures namely judicial reorganisation … Continue reading

The Mozambican New Mining Law

By Zaida Kathrada (ZA) on September 22, 2014 Posted in General

Mozambique’s New Mining Law (20/2014) came into force on 18 August 2014 and is subject to further regulation by the government within 90 days of its publication. The law provides that mineral resources found in the soil and subsoil, in interior waters, in the territorial sea, on the continental shelf and in the exclusive economic … Continue reading

The Mozambican New Petroleum Law

By Zaida Kathrada (ZA) on September 9, 2014 Posted in General

The Mozambique New Petroleum Law (21/2014) came into force on 18 August 2014 and is subject to further regulation by the government within 60 days of its publication. The law provides that all petroleum resources existing as natural resources in the soil and the subsoil, in interior waters, in the territorial sea, on the continental … Continue reading

Forms of security available in Mozambique to foreign lenders

By Zaida Kathrada (ZA) on September 8, 2014 Posted in Banking, General

A proper understanding of how security can be taken and how risk can be mitigated is of paramount importance to investors. Mozambican law allows lenders to take security over certain types of assets of a Mozambican borrower. As a general rule, any security created over property located in Mozambique in favour of a foreign entity … Continue reading

Employment of expatriates in terms of Mozambican laws

By Zaida Kathrada (ZA) on August 28, 2014 Posted in General

As a general rule, the hiring of expatriates for petroleum and mining operations may follow one of the following regimes: Communication (or Quota) regime With reference to the total number of employees hired for fixed term or an indeterminate period (with reference to the previous calendar year), the following percentage of foreigners may be hired … Continue reading

Acquiring land rights in Mozambique

By Zaida Kathrada (ZA) on August 26, 2014 Posted in General

Direito do Uso e Aproveitamento da Terra (DUAT) There is no private ownership of land in Mozambique. Land and its associated resources are the property of the State. The Land Law, however, grants private persons the right to use and benefit from the land known as Direito do Uso e Aproveitamento da Terra (DUAT). Although … Continue reading

Mozambican mining law changes and extension of taxation on Capital Gains

By Zaida Kathrada (ZA) on July 9, 2014 Posted in General

You can also read this blog post in Portuguese. Draft Mining Bill Mozambican mining law dates back to 2002 and is presently under review. Its revision is well overdue in addressing the developments in the sector and the changing dynamics of the mining industry. The major changes of the draft mining Bill include: Granting of … Continue reading