- New Agreement for Cooperation and Facilitation of Investments (ACFI) between Brazil and Mozambique
- April 16, 2015 | Author: Paulo Rage
- Law Firm: Tauil & Chequer Advogados in association with Mayer Brown LLP - Rio de Janeiro Office
On March 30th, 2015, Brazil and Mozambique signed an Agreement for Cooperation and Facilitation of Investments (ACFI) in Maputo. The signing of the ACFI seeks to leverage the internationalization of companies between the two countries by providing greater security for investors in the signatory countries. Mozambique is the first country with which Brazil signed this form of ACFI, developed by the Brazilian government in consultation with the private sector, also to be negotiated with other African countries.
The ACFI is a response to investors’ specific needs; however, it also respects the regulatory framework of the host countries of the investments. Its main clauses establish: institutional governance; mechanisms to enforce its objectives; and, mechanisms for risk mitigation and dispute prevention and resolution. Among the main elements of the new Agreement are also the appointment of ombudsmen for institutional contact; the creation of a Joint Committee for monitoring and implementing the Agreement; and, the determination of an agenda with specific issues for cooperation and facilitation of investments. The following can be highlighted among the priority issues on the agenda,: facilitating the granting of business visas for nationals of both countries; facilitating and speeding the procedures for issuing documents, licenses and certificates required for the establishment and maintenance of investments; cooperation in sector legislation and institutional exchanges; and, cooperation between their respective financial authorities to facilitate the transfer of currency and capital between the countries.
The commercial relationship between the two countries, which are the two most populated among the Portuguese speaking nations, has grown exponentially in the last decade, both through trade and through investments. Brazilian investments in Mozambique, implemented or planned, exceed the amount of US$9.5 billion, according to the Brazilian Department of State (MRE), placing Brazil among the main sources of foreign investment in the African country. The main Brazilian projects in Mozambique are associated with the following sectors: mining, energy, construction & engineering, agriculture and services.