Notice No. 4/GBM/2024, of March 21 – Establishes the Liberalization Regime for Capital and Other Foreign Exchange Operations

SUMMARY NOTICE The matter to be published in the «Boletim da República» must be submitted as a duly authenticated copy, one for each subject matter, containing, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the «Boletim da República». IMPRENSA NACIONAL DE MOÇAMBIQUE, E. P. Bank of Mozambique: Notice No. 4/GBM/2024: Establishes the Liberalization Regime for Capital and Other Foreign Exchange Operations. Notice No. 5/GBM/2024: Establishes the Repatriation and Conversion Regime for Export Revenues from Goods, Services, and Investment Income Abroad. Thursday, March 21, 2024 I Series — Number 58 BANK OF MOZAMBIQUE Notice No. 4/GBM/2024 of March 21 Given the need to establish the necessary conditions for the liberalization of capital and other foreign exchange operations, the Bank of Mozambique, exercising its competence under paragraph 2 of Article 27 of Law No. 28/2022, dated December 29, the Foreign Exchange Law, determines: CHAPTER I General Provisions Article 1 Subject Matter This Notice establishes the liberalization regime for capital and other foreign exchange operations. Article 2 Scope This Notice applies to all parties involved in foreign exchange operations carried out under the Foreign Exchange Law. CHAPTER II Liberalized Capital and Other Foreign Exchange Operations SECTION I General Liberalization of Capital and Other Foreign Exchange Operations Article 3 Liberalized capital and other foreign exchange operations

1. The capital and other foreign exchange operations established in this Notice do not require authorization from the Bank of Mozambique.
2. The capital and other foreign exchange operations not indicated in this Notice are subject to the authorization regime provided for in the Notice on Standards and Procedures for Carrying Out Foreign Exchange Operations. Article 4 Liberalized capital operations The following capital operations do not require authorization from the Bank of Mozambique: a) foreign direct investment; b) foreign investment, up to a maximum value equivalent to USD 1,000,000.00 (one million United States dollars) per each calendar year; c) real estate investment in Mozambique; d) operations on securities and other instruments traded in Mozambique's over-the-counter capital market; e) credits linked to the transaction of goods or the provision of services; f) export of Metical banknotes and coins for numismatic and public exhibition purposes, by resident or non-resident entities, up to an amount equivalent to USD 250.00 (two hundred and fifty United States dollars); g) financial loans and credits, carried out in accordance with the conditions set forth in Articles 6 and 7 of this Notice; h) guarantees related to current transactions; i) other guarantees when at least one of the following circumstances applies: i. provided for a period equal to or less than 1 year; ii. provided in favor of a non-resident or on behalf of a resident under a transaction previously authorized by the Bank of Mozambique; iii. provided on behalf of a non-resident for any purpose, as long as counter-guaranteed by a deposit of equal amount, payable upon first request; iv. provided on behalf of a resident or non-resident, issued in favor of the customs authority during proceedings regarding missing documents, authenticity of signatures, and redemption of goods under receipt. j) operations on participation certificates in collective investment schemes; k) transfers under insurance contracts related to current transactions and already authorized capital operations; l) repatriation/export of invested capital in cases of partial or total divestment, or liquidation. Article 5 Other liberalized foreign exchange operations The following other foreign exchange operations do not require authorization from the Bank of Mozambique: a) receipts not classified as current transactions; b) account opening by non-residents in national or foreign currency in Mozambique, when related to capital operations; c) account opening in foreign currency in Mozambique by residents, provided they have a proven relationship with abroad or non-residents and it results in foreign currency value flows, namely: i. exporters; ii. companies or organizations; iii. workers or employees of diplomatic, consular, or equivalent representations; iv. other entities generating or receiving foreign exchange. SECTION II Special Liberalization of Capital and Other Foreign Exchange Operations Article 6 Supplies or credit from related companies
3. The contracting of supplies or credit by a resident company from a related non-resident company is freely carried out, provided that: a) contracted at an interest rate of 0%, with a maturity equal to or greater than 3 years, not conditioned on the provision of collateral and without commissions or charges; b) contracted at an interest rate above 0% and not exceeding the reference rate (base lending rate) of the credit's denomination currency, with a maturity greater than 3 years, not conditioned on collateral and without commissions or charges, up to an amount equivalent to USD 5,000,000.00 (five million United States dollars) for natural persons and USD 10,000,000.00 (ten million United States dollars) for legal entities.
4. For foreign exchange registration purposes, the process must be prepared in accordance with paragraph g) of Article 69 of the Notice on Standards and Procedures for Carrying Out Foreign Exchange Operations, with the submission of financial statements from the last two fiscal years or proof of the funding source for credit repayment being waived. Article 7 Financial credit received from abroad The contracting of financial credit up to an amount equivalent to USD 5,000,000.00 (five million United States dollars) for natural persons and USD 10,000,000.00 (ten million United States dollars) for legal entities does not require authorization from the Bank of Mozambique, provided that: a) the interest rate does not exceed the reference rate (base lending rate) of the credit's denomination currency, plus 4 percentage points; b) the maturity is equal to or greater than 3 years; c) the sum of commissions and other administrative costs does not exceed 5% of the credit value. Article 8 Supplementary payments/credits The making and repayment of supplementary payments do not require authorization from the Bank of Mozambique, provided that the requirements established in the Commercial Code are observed. Article 9 Ancillary payments/credits The making of ancillary payments in favor of a resident company does not require authorization from the Bank of Mozambique, provided that: a) carried out at an interest rate of 0%, with a maturity equal to or greater than 3 years and without commissions or charges; or b) carried out at an interest rate above 0% and not exceeding the reference rate (base lending rate) of the credit's denomination currency, with a maturity equal to or greater than 3 years and without commissions or charges. CHAPTER III Final Provisions Article 10 Sanctioning Regime Violation of the provisions set forth in this Notice constitutes an offense punishable under Law No. 28/2022, dated December 29. Article 11 Clarification of Doubts Doubts regarding the interpretation and application of this Notice must be submitted to the Licensing and Foreign Exchange Control Department of the Bank of Mozambique. Article 12 Entry into Force This Notice enters into force 30 days after its publication. Bank of Mozambique, in Maputo, February 2, 2024. – The Governor, Rogério Lucas Zandamela.

March 21, 2024 725 Notice No. 5/GBM/2024 of March 21 Given the need to establish the conditions for repatriating export revenues from goods, services, and investment income abroad and their respective conversion, the Bank of Mozambique, exercising its competence under paragraph 3 of Article 20 of Law No. 28/2022, dated December 29, the Foreign Exchange Law, determines: Article 1 Subject Matter

1. This Notice establishes the repatriation and conversion regime for export revenues from goods, services, and investment income abroad.
2. For the purposes of this Notice, income resulting from credits and loans granted abroad are equated to investment income abroad. Article 2 Scope This Notice applies to all parties involved in foreign exchange operations carried out under the Foreign Exchange Law. Article 3 Repatriation of revenues
3. The repatriation of export revenues from goods, services, and investment income abroad by residents must be carried out within 90 days, calculated from: a) shipment, in the case of goods exports; b) receipt of the price or fees arising from the provision of services; or c) receipt of income, in the case of foreign investment.
4. The repatriation of export revenues from goods, services, and investment income abroad must be carried out in foreign currency, via bank transfer, to a bank authorized to operate in the Republic of Mozambique. Article 4 Conversion of revenues
5. Export revenues from goods, services, and investment income abroad must be converted into national currency at 30% of the received value.
6. The conversion referred to in the preceding paragraph must be carried out at the time of receipt, at the prevailing spot exchange rate.
7. The following revenues are not subject to the conversion referred to in paragraph 1: a) those resulting from rent payments by non-resident entities for the use of real estate belonging to residents, located in national territory, when such payment is made to accounts domiciled in the national banking system; b) those relating to the payment of remuneration, arising from employment relationships or services provided by residents to embassies, diplomatic or consular representations, and equivalent entities established in Mozambique. Article 5 Sanctioning Regime Violation of the provisions set forth in this Notice constitutes an offense punishable under Law No. 28/2022, dated December 29. Article 6 Entry into Force This Notice enters into force 30 days after its publication. Article 7 Clarification of Doubts Doubts regarding the interpretation and application of this Notice must be submitted to the Licensing and Foreign Exchange Control Department of the Bank of Mozambique. Bank of Mozambique, in Maputo, February 2, 2024. – The Governor, Rogério Lucas Zandamela.

Price — 20.00 MT IMPRENSA NACIONAL DE MOÇAMBIQUE, E.P.