Fernanda Lopes on Mozambique | Fernanda Lopes and Associados | Video

Transcript

Mozambique is one of the world’s fastest growing economies, driven by a wealth of natural resources. Fernanda Lopes, Managing Partner of Fernanda Lopes and Associados , talks about the big changes in Mozambique’s legal landscape, the huge potential for investment in infrastructure, agriculture and and tourism, and the legal issues that companies should be aware of entering the country.

World Finance: How has Mozambique’s legal landscape changed over the past two decades?

Fernanda Lopes: It has changed a lot. If you look back at history, it needed, and it had to change. After more than 40 years of war, when finally peace came into the country, and finally it was decided that private investment would be the tool to develop the country. Since 1993 the country prepared for peace, and prepared for economic development.

Of course along that time, all the previous situation had changed completely, not only from an economic perspective, but also from a legal point of view.

“None of us want to go back to war, and the population will force government to comply with the law”

World Finance: So what is the potential for foreign investment in the country?

Fernanda Lopes: There’s an immense potential. If you recall, we came out of war. So, everything has to be rebuilt. If you look at construction, with the new natural resources discoveries, new infrastructure will have to be built. But nothing big has much more potential than that. We have a lot of water calling for dams, calling for energy. We have a very big and fertile territory, calling for agriculture. We have a sea – almost 4,000 km coast, calling for tourism.

World Finance: And what about the challenges?

Fernanda Lopes: Infrastructure was destroyed throughout the war. Now, if you look at the position of Mozambique, you can figure out how important infrastructure can be. All the inland countries depend for their imports and exports on Mozambique.

The second challenge is lack of qualification of the population.

“Foreign investors should be aware that formalities are essential. A case could be thrown out on the basis of lack of formality”

World Finance: The law in Mozambique is constantly evolving. How does this impact on investors?

Fernanda Lopes: I don’t see a concern on foreign investments with the changes of law, because whatever new law will only apply to the future, and if it touches previous investments, there will be a period of time – around six months – for the investor to adjust to the new law.

World Finance: What role will legal firms play in Mozambique’s development?

Fernanda Lopes: We know the local law, and we know what are the concerns of the investors. So, let’s say that we are a perfect vehicle to convey the concerns to government and parliament, either directly or through the organisations, in order for the law to change.

World Finance: You’re becoming increasingly involved in labour matters. What are the issues companies need to be aware of?

Fernanda Lopes: We have a codified legal system, full of formalities. So, I think that foreign investors should be aware that formalities are essential. A case could be thrown out on the basis of lack of formality. That is, the judge might consider that due to lack of formalities, there is an unfair dismissal, not even entering into the merits of the case.

“Infrastructure was destroyed throughout the war. There’s an immense potential for foreign investment”

World Finance: And finally, will the political environment of the country remain sufficiently stable to maintain economic stability and prosperity?

Fernanda Lopes: We’ve gone through a very long period of war, in colonial time, and after independence the internal war. So, none of us – meaning the population of Mozambique – want to go back to war. And besides that, if you look at our recent history, after peace arrived in Mozambique, our president stepped out voluntarily, Joaquim Chissano stepped out voluntarily. And this president will step out also voluntarily. So, in a way we want to comply with the law, and the population will force government to comply with the law. No doubt there will be peace, we don’t want war.

World Finance: Fernanda, thank you.

Fernanda Lopes: You’re welcome.