Mozambique Overhauls Business Licensing: One-Day Approvals and Digitalisation Drive Formalisation
Mozambique is set to dramatically streamline its business environment with new regulations that slash licensing times to as little as one business day and prioritise digital processes. The government’s move, detailed in Decrees No. 40/2026 and No. 41/2026 published on 27 July, aims to foster economic growth, particularly for micro, small, and medium-sized enterprises (MSMEs), and encourage formalisation.
These new decrees introduce a Prior Notification Regulation and a Simplified Licensing Regulation for Economic Activities, replacing earlier frameworks. For economic activities classified as low-risk, the Prior Notification Certificate will now be issued within a maximum of two hours. Crucially, any delay in issuing this certificate will not prevent the applicant from commencing operations, as the document will hold the same legal weight as a formal licence. For activities falling under the Simplified Licensing regime, the licence must be issued within a single business day.
The reform champions the use of digital platforms, with the e-BAU platform designated for preferential use. This digital shift is designed to enhance information sharing among public institutions, thereby reducing the burden on entrepreneurs who will no longer need to submit the same documentation repeatedly to various authorities. Furthermore, the new framework formally recognises electronic signatures, granting them the same legal validity as handwritten signatures in these administrative processes. Oversight for lower-risk activities will also transition to a post-commencement inspection model, calibrated to the specific risk level of the operation.
According to the Ministry of Economy, these reforms signify a fundamental shift in the state’s relationship with economic operators, moving towards a model built on trust, administrative simplification, and digitalisation. The government anticipates that reduced licensing costs and significantly shorter processing times will lower barriers to market entry, especially for young entrepreneurs and MSMEs seeking to formalise their operations. This initiative directly addresses longstanding demands from the private sector, which has consistently highlighted bureaucracy and procedural delays as significant impediments to doing business in Mozambique. By aligning national procedures with international best practices, Mozambique aims to enhance predictability for businesses and create a more conducive environment for broader economic formalisation. Decree No. 40/2026 revokes Decree No. 27/2023, and Decree No. 41/2026 replaces Decree No. 39/2017.
