Mozambique overhauls business start-up and licensing system, cuts red tape

40/2026 and No. 41/2026, which introduce new procedures to simplify and accelerate the processes for starting and licensing economic activities. The procedures will preferably be carried out through e-BAU, allowing information to be shared between public institutions and reducing the need for entrepreneurs to repeatedly submit the same documents.

The reform also introduces legally binding electronic signatures, strengthening the digitalisation of procedures and reducing reliance on in-person processes and paper documentation. The new model also provides for risk-based inspections carried out after authorisation, allowing the State to focus its control mechanisms on activities with greater risk potential. Another measure with a direct impact on small businesses is the exemption from fees for micro-enterprises covered by theMera Comunicação Prévia[Prior Notification] regime.

Micro, Small and Medium-sized Enterprises (MSMEs) may also benefit from faster and less costly procedures, creating better conditions for entrepreneurs to devote resources to the growth and development of their businesses. The expectation is that the new measures will help boost entrepreneurship, attract investment, accelerate the formalisation of businesses and strengthen the competitiveness of the Mozambican economy.