Mozambique: Parliament unanimously approves crowdfunding bill

Mozambique’s parliament, the Assembly of the Republic, unanimously approved on Wednesday, 11 November, the Bill establishing the Legal Framework for Collaborative Financing (crowdfunding). The government-initiated bill aims to facilitate access to financing, particularly for Micro, Small and Medium-sized Enterprises (MSMEs).

According to the Minister of Public Works, Housing and Water Resources, Fernando Rafael, who addressed parliament on behalf of Finance Minister Carla Loveira, the legislative initiative seeks to create alternatives to traditional financing mechanisms, helping to build a more dynamic, inclusive and competitive economy.

Rafael explained that the legislative initiative forms part of the government’s efforts to promote an economy that is more dynamic, inclusive and competitive, and capable of creating opportunities for all Mozambicans.

The minister highlighted that the Bill provides for four types of collaborative financing: equity-based financing, lending, donations and rewards.

He further explained that the Bill introduces five key provisions: the requirement for entities to be registered; the protection of funders or investors; transparency requirements; provisions to mitigate conflicts of interest; and the establishment of the role of a custodian.

“It is the government’s view that approval of this Bill will promote greater access to financial resources for beneficiaries and, from the perspective of equity-based financing and lending, contribute to achieving the country’s economic independence,” the minister stressed.