IFLR 1000
The Guide to the World's Leading Financial Law Firms

The legal market in Mozambique has changed considerably since the start of 2011, as was noted last year with the merger of three of the country's biggest firms into one: Couto Graça & Associados (CGA). The result is that there are fewer law firms competing for big ticket work but with much larger capacity....

The legal market in Mozambique has changed considerably since the start of 2011, as was noted last year with the merger of three of the country's biggest firms into one: Couto Graça & Associados (CGA). The result is that there are fewer law firms competing for big ticket work but with much larger capacity. Consequently, CGA and SAL & Caldeira have become the two biggest firms by numbers in the country.

The market has also seen in recent years a flurry of associations with Portuguese firms, allowing Cuatrecasas Gonçalves Pereira & Associates, Miranda, PLMJ, Abreu Advogados and Morais Leitão Galvão Teles Soares da Silva & Associados all to be active in the market along with the global law firms, which act through more informal channels.

Aside from the three leading firms there are a number of highly respected lawyers in the other tiers as part of firms or acting as sole practitioners.

CONTEXT AND TRENDS Mozambique has been one of the most active and growing markets in Africa due primarily to its natural resources: coal, oil and gas. These areas have created activity across all sectors and the country now has large infrastructure projects underway spurring on growth in the financing and private equity markets....

Mozambique has been one of the most active and growing markets in Africa due primarily to its natural resources: coal, oil and gas. These areas have created activity across all sectors and the country now has large infrastructure projects underway spurring on growth in the financing and private equity markets.

"Business is growing fast here and things are very different to Europe," says one lawyer, "people are trying to do business everywhere and there is much foreign direct investment (FDI) from Brazil, China, India and South Africa… the perspective is very, very good in many ways".

Another lawyer also enthuses over Mozambique's future: "With 7-9% growth a year it is totally different and the next five years things will be the same or better than in Angola, though also very different than Angola is many ways, I hope." "We have so much work, all the firms are very busy and it is a very good problem to have," says one partner.

Firms all round register activity in hydroelectric power, natural gas, coal, mining, construction of infrastructure, roads, rail, bridges, buildings and ports, among other things and all the related service companies that come in tow in the oil & gas sector. "In natural resource work it is not only the companies themselves but all the service providers piling in and setting up in Mozambique to the point the legal entities registry cannot cope," says a lawyer.

In terms of banking and capital markets the market has been more moderate and as one lawyer explains "everything is now in expectancy mode". "Only two companies are trading properly on the stock exchange, nothing is really happening and they are not really trying to make it work," the partner adds. Things have changed in financing however as multi-lateral agencies have been replaced largely by commercial banks and private equity investment.

There have been quite a few legislative developments of note, with the passing of the Megaprojects and Concession Law. The notable aspect of this is that it requires public participation in megaprojects through a stake of between 5% to 20% of the project within five years of the project's inception, meaning project companies will have to float 5-20% of their shares on the Mozambican Stock Exchange.

Elsewhere, laws are being discussed in relation to obligations on investors regarding the relocation of communities in megaprojects and tax laws related to oil and mining.

MAJOR LEGISLATION CHANGES

Megaprojects & Concessions Law
Effective July 2012

Mining & Petroleum Law
Estimated 2013

RISING STARS

SAL & Caldeira
Eduardo Calu