Asset management and private equity in Mozambique - Part I

Paula Duarte Rocha, Diana Ribeiro Duarte, Pedro Capitão Barbosa and Mara Rupia Lopes signed the article "Asset management and private equity in Mozambique - Part I", published in Lexology.

« I – Basics of financial sector regulation

This article provides a brief introduction of the main statutes and actors involved in regulation of the financial sector in Mozambique and is the first in a series (of articles) which look to shed light on the asset management and private equity sectors in the country from a legal perspective.

1.1. Overview of the financial sector

After turbulent beginnings and a brief stint with a State monopoly system following the country’s independence in 1975, the Mozambican financial sector has undergone significant reforms to align it with the international financial order. Mozambique is a part of the multilateral agreements which underpin the international financial system (IMF, WTO/GATT) and its 2004 Constitution is now beholden to principles of private economic initiative.

Activities which are usually associated with the financial sector, typically liquidity transformation, maturity transformation and credit transformation are thus now provided by private actors and subject to market forces and competition (provided legal and regulatory principles are complied with) (…) ».

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