Imagine, for example, a professional who has landed in Maputo and needs a space for a meeting, or who needs to deliver a report or other work with the necessary conditions and privacy. Or a freelancer who needs to make a video call to headquarters in a situation where there is echo or a power outage or internet failure.

In either of these cases, this professional doesn’t need a permanent office with a contract, monthly fees, and their own furniture. Above all, they need a desk, a reliable internet connection, guaranteed power, and a place where they can answer calls without background noise. For a day or a few days, they need a space that functions as an office without the obligations of one.

This is where day coworking comes in. This model allows you to use a shared workspace for a specific day, without a long-term commitment. It’s useful for solving a specific problem on a specific day.

How does it work in practice ?

The concept is simple: you book a day pass , often online or upon arrival. The user checks in at reception , sets up their laptop at a shared desk ( hot desk ), and has access to internet, power, air conditioning, and common areas. Meeting rooms and printers are usually available, but not always included in the base price.

In Maputo, the supply is concentrated in areas with easy corporate access: Baixa, Polana, Sommerschield, the Millennium Park area and, to a lesser extent, Matola . There are international chains, independent business centers and spaces with a more community or creative profile.

Who needs an office for a day ?

There are various profiles, and none of them are rare.

The traveling professional. Consultants, auditors, and technicians who spend a few days in the capital need a predictable workspace. Renting an office for a week would be excessive, and working from a hotel room is rarely productive.

The remote worker or freelancer having a tough day. Working from home works until the day the internet fails, the power goes out, or there’s construction in the building next door. For many, the day pass is a fallback solution, used irregularly.

Who needs to receive someone? An interview, a meeting with a client, or a short training session calls for a professional environment. Receiving them at a café or at home doesn’t always project the right image.

The team in transition. Companies undergoing change, in the middle of construction, or with a team that has grown faster than the office sometimes resort to external spaces for a few days or weeks.

For those who want to try it out, before paying a monthly fee, some prefer to spend a day in a space to see if the environment, noise level, and location suit them.

In all cases, the criterion is the same: pay only for the time you use.

After all, How much does Coworking per day in Maputo cost?

There is no single price list . As a market reference, in Maputo, a daily pass in simpler spaces is generally between 800 and 1,500 meticais . In high-end corporate spaces, with international standards and prestigious locations, the prices rise to 1,490 to 1,890 meticais per day .

For a specific local reference, Cowork Lab’s prices can be found on this page . Comparison with other providers is still recommended, as each space defines what is included in the daily pass.

The price also reflects what you pay for without seeing it: high-speed internet, continuous power supply , equipped meeting rooms, security, and parking.

What to ask before booking

Before choosing this service , it’s worth clarifying a few points:

• What does the price include? Printing and access to meeting rooms are not always included in the price.
• Is there an alternative in case of a power outage or internet failure? A generator, UPS (uninterruptible power supply), and backup connection make all the difference.
• Do I need to book in advance? In many cases it is advisable, especially during the week.
• What are the opening hours? Please confirm the opening and closing times and whether there is access on weekends.
• Are there quiet zones or phone booths? A crucial detail for those who make video calls.

What if “just one day” happens again?

Some people start with a pass and end up returning every week. In that case, it’s worth doing the math: a monthly hot desk pass in Maputo generally costs between 4,500 and 8,000 meticais . If usage exceeds five or six days per month, the monthly plan may be cheaper than individual passes.

Basically, coworking on a daily basis acts as insurance against unforeseen events and a way to test things out without commitment. Those who use it rarely need it every day, but when they do, they really need it.

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So, what exactly is a coworking space ?

coworking space is, in essence, a work model where professionals from different fields and companies share a common office environment. Unlike a traditional office, coworking offers complete flexibility. Freelancers can rent anything from a simple desk in a shared space for a few hours or days, to a private office for longer periods. These spaces are fully furnished, include services such as high-speed internet and meeting rooms, and are managed by a team that takes care of all the logistics. In this way, freelancers can focus exclusively on their work, without the usual headaches related to infrastructure. It is precisely this ability to solve practical day-to-day problems that makes coworking spaces the preferred choice for freelancers in Mozambique.

But where can you find the ideal space?

The coworking space market in the country is diversifying. Currently , we find everything from local spaces with their own identity to international networks with a global presence. Most are concentrated in Maputo, but opportunities are beginning to emerge in other cities as well.

Coworking stands out. Lab offers open -plan offices, private offices, and meeting rooms, complemented by services such as high-speed internet and common networking areas . Beyond Coworking In addition to Lab , there are other business centers with varying profiles and locations in Maputo. These spaces offer, beyond infrastructure, a diverse community that facilitates access to a wide network of potential partners and clients.

Benefits of coworking for freelancers

Analyzing the benefits, the question arises: why would a freelancer trade the home environment for a shared workspace? The answer, as we have seen, lies in advantages that go far beyond the simple need for a secretary, especially in a context like Mozambique’s.

Guaranteed infrastructure: For many, this is the starting point. In a coworking space , the electricity doesn’t fail (thanks to generators), the internet is stable, and there’s appropriate furniture. Anyone who has missed deadlines because of a blackout or an unstable connection knows the value of this. Coworking for freelancers in Mozambique acts as a safe haven against fluctuations in the electricity and telecommunications grid .

Productivity and professional structure: Beyond infrastructure, having a dedicated workspace helps establish a routine, physically and mentally separating professional and personal life . Spaces are designed to maximize productivity, with adequate lighting and an environment designed for focus.

Networking and community: One of the greatest assets of a coworking space is the community. Being surrounded by other professionals, entrepreneurs, and creatives opens doors to collaborations and new business opportunities. Many spaces organize events and workshops that facilitate these connections.

Flexibility and scalability: A freelancer’s needs can change rapidly. Coworking spaces offer flexible plans that adapt to these changes. You can start with a daily pass to try it out, upgrade to a dedicated desk if a fixed location is needed, or even rent a private office if a small team is being hired in the meantime. This allows you to manage costs efficiently, paying only for what you use.

Professional image: Receiving clients in a professional and well-presented environment creates a much more positive impression than doing so in a café or your living room. Most venues have fully equipped meeting rooms that can be booked by the hour.

How to choose the right space?

To make an informed decision about their future workspace, freelancers should consider several practical aspects .

First and foremost, the location. Is the space easily accessible? Is it close to public transport, restaurants, and other services? A central location can be a great convenience in everyday life.

Next, consider the type of space and environment. Does the professional need a quiet place for in-depth work, or do they prefer a more dynamic and collaborative environment? Visiting the space is essential to feel the energy of the place. Many offer guided tours or even a free day to try out the service, which is always recommended.

Cost is another determining factor . Prices vary depending on the plan and location. It’s important to compare what’s included in each plan and check for additional costs for services like printing or room reservations. It’s worth considering that this investment may be less than the cost of frustration and lost productivity at home.

Finally, the services and amenities. Beyond the basics, does the space offer what you really need? It could include well-equipped meeting rooms, lockers, parking, coffee and tea, or even a terrace for a strategic break.

For freelancers in Mozambique, the decision to join a coworking space is, above all, an investment in their own business. It’s about trading the uncertainty of home for the guarantee of a functional workspace, isolation for a community, distractions for a focused environment. If the idea is to take their career to another level, it’s worth visiting some spaces, trying a day pass, and discovering how this way of working can truly transform their professional trajectory.

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But what exactly are soft skills?

Soft skills refer to the personality traits or skills needed to succeed in the workplace. They are a kind of added value that each individual has and that can imbue some dynamism and greater confidence in the labor sector. These skills do not necessarily imply technical knowledge, but only the behavioral capabilities of each one. For example, having a good interpersonal relationship and knowing how to manage time are examples of soft skills. These skills, although they seem natural and inherent to each one, can be learned or perfected over time.

Why are soft skills so important in the job market?

Employees with essential interpersonal skills often stand out from the crowd and can add dynamism to the day-to-day management of the company or can be more competent at performing tasks. Possessing strong communication skills, for example, MAY indicate that the worker is better able to build healthy relationships with customers or fellow employees. ot to mention, individuals with leadership skills are better able to find solutions to the challenges the company presents. Thus, training these skills or competencies makes workers more skilled and effective in achieving better results.

Most appreciated soft skills in the job market?

When it comes to looking for a job or filling a position with a company, none of the soft skills should be taken for granted. However, the actual circumstances inherent in a specific job post may require some skills more than others. Even so, there are soft skills that any employee should seek to develop, especially in this rapidly and constantly changing market.

Flexibility and Adaptability

With a world in constant change, flexibility and adaptability to the environment have become the most demanded interpersonal skills in the job market. Even in a company or project, things don’t always go as planned, so it’s extremely important that employees know how to react at the right time and how to adapt to new ideas and solutions. The most successful employees are those who know how to act in unforeseen situations and in the face of challenges, in addition to having a broader and more open vision when it comes to approaches and thinking.

Responsibility

Accountability is a very important and in-demand interpersonal skill, especially when it comes to a teamwork situation, as accountability is the key to allowing team members to trust each other. Qualities such as discipline, reliability, motivation and diligence or concentration in the execution of tasks demonstrate an individual’s responsibility. Taking responsibility means that the employee is willing to give his all for the company’s general objectives and also to take initiatives to improve himself, accept possible mistakes and strive for common success.

Communication skills

A good communication skill is always a given. This means that it is necessary to make an effort so that communication is always adapted to the content, the interlocutor and other circumstances, so as not to create interference or misunderstandings. It is necessary to take care that communication is established in a clear and constructive way, especially within a team where knowing how to effectively articulate thoughts is crucial. It is important to remember that part of good communication is the ability to listen carefully to the interlocutors.

Growth mindset

More than ever, it is necessary to adapt to changes in the job market as a whole and in the company itself, which is why the growth mindset stands out among the desired soft skills. What does it really mean? Growth mindset is a concept about motivating individuals to improve and achieve milestones by constantly learning new skills and adapting to changing circumstances. As a team, the growth mindset leads to faster and more innovative solutions and creates a stimulating environment for the general growth of everyone involved in the process.

Critical remark

Critical observation means the ability to adequately analyze and interpret facts or situations. In a work environment context, an employee with the critical observation skill helps to bring new perspectives, as it offers new solutions and ideas and helps to improve internal processes. Only those who have critical observation notice the existence of established standards that can be adjusted and improved when necessary. For example, the points where deviations or errors occur most frequently, the appropriate times of day or week for individual tasks, the strongest aspects of competence of individual team members, among others.

Read also: Burnout: how to prevent it?

Emotional intelligence

Emotional intelligence is an increasingly important skill in the job market. It represents the ability to perceive, process and react appropriately to the emotions of others. A well-developed emotional intelligence is particularly crucial in conflict situations, as the right approach can contribute to a better, healthier and more cooperative working relationship between employees. It also helps you to think calmly and soberly and find constructive solutions to future challenges. In stressful situations, emotional intelligence is one of the keys that can help the whole team work more smoothly and successfully, as well as generate more trust between team members and within the company in the long term.

Self motivation

A work team works best and most successfully when the individual is self-motivated and does not require supervision, as he performs all tasks on his own initiative and within the set time frame. Self-motivation is also closely related to trust and commitment to the team, so this is certainly one of the soft skills worth developing and cultivating. However, it is not enough for the professional to work by himself, but the work environment must also offer an adequate space for the growth and development of his potential as a whole.

CONCLUSION

As seen, soft skills are interpersonal skills that allow the individual to have added value within the job market. However, they must be accompanied by know-how and technical skills in order to make the employee more valued and respected within the workplace. The best way to develop soft skills is probably a combination of the old and new ways. Work experience will always be the best teacher, but complementing it with personal development on their own with the resources and tools that best suit their learning styles can help an individual grow faster.

Read also: The best jobs to work remotely

FAQs

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The above example shows how companies at some point need people who believe in and support their business with funding and make it available so that these companies can move forward, progress, and achieve established goals. In fact, for some entrepreneurs, external investment is the only way to keep their business idea alive. But what exactly are investors, how are they distinguished, and what are their advantages and disadvantages?

Investors

An investor is an individual or organization that gives money to another person or organization in the hope of a return on the invested capital. Theoretically, anyone can be an investor, even if they are a friend or a relative. As long as someone invests money in something, they are an investor; however, making an investment often comes with an expected counterpart. Depending on the type of investment made, the counterparts may consist of shares in the company’s profits, the right to make decisions in the company’s management, among others, and are usually well specified in the contract between the parties.

What different types of investors are there?

As we have seen, investors have the potential to serve as the muscle or life force of a company. The right investor can help propel a startup from its inception to becoming a successful company.

In the startup financial market, there are various designations for investors, which vary according to the type of investment. These include business angels, who accompany a company in the founding process through capital investment and/or other forms of assistance. In addition to them, there are venture capitalists, who invest so-called venture capital in a company with growth potential. In addition to these investors, there are so-called peer-to-peer investors, who can be friends, acquaintances, or unknown individuals who invest in their company indirectly or through specific platforms. In any case, it is important to note that there are distinctions between the types of investors and, for those starting out in business, knowing the differences is essential for when the phase of seeking investments or increasing capital arrives.

Business angels

Business angels or angel investors are usually successful entrepreneurs who want to expand their wealth by investing in projects they believe in, especially startups that may have difficulty accessing more traditional forms of financing. This investment is usually in the form of a loan or a stake in the company, depending on the terms. Sometimes, they also guide or advise the business in which they are investing, considering that many of them have some knowledge in the area or type of business they invest in. In some cases, these “angels” make a high-risk investment in the hope of receiving a large return if the company is bought by a larger company or fund or if it is publicly traded on the stock exchange.

VC’s

Venture capitalists typically invest larger amounts of money into a company in order to secure a stake in the company.. The investment is based on the idea that this increase in social capital will increase in value over time and they will receive a return on their initial investment. This type of investor usually works with companies that have a solid business plan and have already demonstrated some degree of success. Additionally, they rarely invest in startups considered risky. Entrepreneurs who choose this route should be aware that by seeking investment from a venture capitalist, they may be partially giving up control over the company, as VCs will certainly want to have a say in management decisions. For this case, it is important to establish a detailed partnership agreement that outlines the rights and responsibilities of each party.

Peer-to-peer lending

Peer-to-peer lending, also known as social lending, allows entrepreneurs to obtain loans directly from other individuals, eliminating financial institutions as intermediaries. For this type of lending, startups and entrepreneurs can create online profiles for their specific projects on sites to be considered by investors. Potential investors can access the credit history of the proponent. After the investment is approved, it will be necessary to negotiate an interest rate for the investment with the lender, who is usually an individual. It is important to understand the loan terms and avoid delays in payments, as it can harm future loans through these platforms.

How to find investors?

To find the type of investor needed, it is necessary to establish a carefully crafted business plan, indicating relevant information such as the business idea, objectives, and strategies to implement them, as well as a financial plan. It will also be essential to convince investors to perceive the potential of the market that the company presents. It is important at a minimum to establish a network or know digital investment platforms and not give up the search after the first rejection. Sometimes the type of investor to look for will also depend on the stage your company is in. For example, there are some investors who prefer to invest in a more advanced phase of any enterprise, and typically, venture capitalists look for companies that already have some traction in the market, with a minimum viable product and a sales track record.

The advantage of an investor is that they bring a certain level of expertise through investments already made and may even know other investors. . Thus, they can not only support you financially but also give tips and advise you regarding your business. Unlike banks, it is usually not necessary to pay interest on the capital of investors who participate in your social capital, which can be more attractive to startups, which generally cannot generate cash surplus in the first years after their foundation. Additionally, the investment increases the company’s assets, which may make the company more attractive to other investors. However, it should be noted that there are also disadvantages of investor financing because, as previously mentioned, the investor establishes one or more conditions for their investment, which usually materialize in the form of company shares or profit participation. Founders, therefore, are no longer the only shareholders, which can lead to potential conflicts in decision-making processes between the investor and the founder.

FAQ’s

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What is the Digital Nomad Visa?

The Digital Nomad Visa allows remote workers from outside the European Union to work in Portugal, without the need for a local employment contract. With this visa, the professional can establish residence in the country and move freely within the Schengen area, making it an attractive option for those who value mobility. Granting the digital nomad visa implies, however, compliance with certain requirements that guarantee the economic viability of the professional during their stay.

Visa Requirements

The main requirements for obtaining the Digital Nomad Visa are as follows:

1. 1. Proof of Income: The candidate must demonstrate average monthly income in the last three months equivalent to at least four Portuguese minimum wages. In 2024, this amount amounts to 3,280 euros per month, which aims to ensure that the digital nomad has adequate means of subsistence.
2. 2. Proof of Means of Subsistence: In addition to the monthly income, it is necessary to prove that the individual has sufficient resources to cover his/her expenses in Portugal, through bank accounts or other assets.
3. 3. Employment or Service Provision Contracts : In the case of employees, the presentation of an employment contract is required. For self-employed professionals, the submission of service provision or partnership contracts is essential to prove economic activity.

Tax Regime for digital nomads in Portugal

Advantages of the Digital Nomad Visa

The visa provides significant advantages for professionals who wish to enjoy the Portuguese lifestyle:

1. Residence and Mobility: The residence permit allows you to move freely throughout the European Union, which is an added value for professionals who wish to expand their horizons within the European market.
2. Quality of Life and Competitive Cost of Living : Portugal offers one of the best climates in Europe and a relatively affordable cost of living, especially when compared to other Western European countries. High-speed internet access and a vast network of coworking spaces ensure ideal conditions for remote working.
3. Infrastructure and Security: Portugal has a modern infrastructure, high security and a welcoming environment, factors that contribute to the quality of life of digital nomads and their families.

Tax Residency and Tax Planning

A key issue for digital nomads in Portugal is tax residency, as this is what determines where income should be taxed. Tax residency in Portugal is granted to any individual who spends more than 183 days per year in the country, which implies the need to declare income, regardless of whether it is obtained in Portuguese territory or abroad.

The Importance of Tax Residency

Tax residency does not depend on the possession of a fixed residence, but rather on habitual residence in the country. If the digital nomad has not submitted the Declaration of Permanent Departure in his/her country of origin and remains in Portugal for more than 183 days, he/she may be considered a tax resident in both countries, resulting in dual tax residency. This situation entails the obligation to declare income in both countries, which may give rise to cases of double taxation, which makes tax planning essential.

Non-Habitual Resident Regime (NHR)

The Non-Habitual Resident Regime (RNH) has been, until its announced abolition, one of the main reasons why many qualified professionals have chosen Portugal. This regime allowed the taxation of income obtained in Portugal at a flat rate of 20% for professions considered to have high added value, such as engineers, doctors or architects. In addition, income obtained abroad could be exempt from taxation in Portugal, depending on international double taxation agreements. However, it is important to highlight that this regime is about to be abolished, requiring extra attention from those who can still benefit from it.

Tax Planning and Compliance

The issue of double taxation, combined with the exchange of information between tax authorities in different countries, requires digital nomads to adopt a clear strategy that complies with the laws of both countries where they may be considered tax residents. Failure to comply with tax obligations, particularly with regard to the universal income declaration, can result in severe penalties, including heavy fines and, in extreme cases, the loss of residence permits. Therefore, specialist tax advice is crucial to avoid mistakes and maximize the advantages offered by the Portuguese regime.

The Digital Nomad Visa in Portugal represents an excellent opportunity for remote professionals who wish to combine work with a high quality of life, while benefiting from an attractive tax regime. However, the key to success lies in proper tax planning, which allows you to avoid double taxation and ensure compliance with legal obligations both in Portugal and in your country of origin. For those seeking a balance between work, freedom and security, Portugal presents itself as the ideal destination, both personally and professionally.

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TYPES OF STARTUPS

Although they vary in their business models, objectives and sectors of activity, all startups share a search for innovation, problem solving and the potential for rapid growth. In this context, we can find different types of startups, of which we highlight the following:

Scalable Startups

These are companies with the potential for rapid growth and seek to capture a significant portion of the market with innovative ideas. They prioritize scalability, expanding without proportionally increasing costs. They generally seek venture capital financing to boost their growth and achieve their expansion plans.

Lifestyle Startups

Focused on the balance between entrepreneurs’ personal and professional lives, these startups do not necessarily seek rapid growth, but rather create an environment that supports the desired lifestyle. They operate in niche markets and offer flexibility in schedules and remote work options. Examples include businesses related to yoga, sports, dance, jewelry sales, fashion consultancy, among others.

Small Business Startups

These focus on local or niche markets. These startups prioritize long-term stability and sustainability. They are generally self-financed or supported by loans; they contribute to community development and the creation of jobs in their areas of activity. Eco-lodges, small-scale agribusinesses and artisanal businesses are some examples.

Social Entrepreneurship Startups

Combining business principles with social or environmental impact objectives, these startups seek to solve urgent issues, such as poverty and inequalities, in a financially viable way. They use strategies such as social enterprises and impact investments to achieve dual results: financial sustainability and social or environmental benefits. Organizations such as Plataforma Makobo, Mozambikes and BioMec exemplify this type of enterprise in Mozambique.

Corporate Startups (Intrapreneurship)

These are initiatives that are born and developed within larger organizations, taking advantage of the resources and market presence of the parent company to foster innovation and explore new markets or products. Promoting a culture of internal entrepreneurship, they encourage employees to pursue innovative ideas with the company’s dedicated support.

University Startups

They are created from academic institutions; These startups aim to commercialize products or discoveries resulting from university research. Leveraging university resources such as research facilities, they work collaboratively with faculty and students to develop marketable solutions, providing practical entrepreneurial experience for students.

WHAT MAKES A STARTUP SUCCESSFUL?

Successful startups are those that manage to transform their ideas into profitable and sustainable ventures, creating value for shareholders, employees, customers and society as a whole. These emerging companies demonstrate significant growth in terms of revenue, customer base, market share and impact on the industry or market in which they operate. Furthermore, successful startups are usually recognized for the innovation of their products or services, the efficiency of their operations and their ability to adapt to changes in the business environment.

DISTINCTIONS BETWEEN STARTUPS

Startups are distinguished from each other mainly by the following aspects:

Business model:

Each startup can adopt a unique business model, which defines how the company creates, delivers and captures value. This may include subscription models, marketplace, freemium, among others.

Activity Sector:

Startups can operate in a wide variety of sectors, such as technology, health, finance, education, transport, among others. The sector in which they operate influences their growth, competition and regulatory strategies.

Value offer:

Each startup offers a specific value proposition to its customers, that is, the promise of benefits that its products or services bring. This may include technological innovations, convenience, cost savings, among others.

Growth Strategy:

Startups can adopt different strategies to grow, such as geographic expansion, product diversification, strategic partnerships, mergers and acquisitions, among others.

Organizational culture:

A startup’s culture, including its values, beliefs, practices and work environment, can vary significantly from one company to another. This affects the way employees work and interact within the organization.

Financing source:

Startups can obtain financing from various sources, such as angel investors, venture capital, crowdfunding, bank loans, among others. The chosen financing strategy can impact the company’s growth and autonomy.

These are just some of the factors that distinguish startups from each other, and each company may have a unique combination of these elements that contributes to its identity and success.

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According to the World Bank, governments around the world spend $9.5 trillion a year on purchasing goods and services. The construction of schools, the purchase of hospital supplies, the renovation of vehicle fleets for public transport, the construction of roads or the security of computer systems in public buildings are examples of the wide range of sectors covered by public procurement. According to the same data, developing countries spend US$ 820 billion a year in obtaining these goods and services from the private sector, making the public procurement market a great business opportunity for companies around the world.

In Mozambique, with the introduction of the new 2010 Procurement Regulation, all public works, goods and services acquired by the government at all levels (national, provincial, district and municipal, as well as companies in which the State holds 100% of the capital , when the financial activities of any of the aforementioned entities are linked to the State budget, must be carried out in accordance with the requirements set out in the Procurement Regulation, which provides for the Public Tender as the only means of bidding.

The Procurement Regulations require that all procurement procedures comply with a number of principles, including legality, public interest, transparency, openness, equality, competitiveness, impartiality and sound financial management. In addition, procurement processes should be decentralized wherever possible, as indicated by the UFSA (Functional Procurement Supervision Unit), and should strive to optimize the benefits of procurement.

The Public Tender proceeds according to a logical sequence of phases, which provides for the preparation; the release; the submission and opening of bids and qualification documents; the evaluation of proposals and qualification documents; sanitation; the classification; the Jury’s Recommendation; the decision; followed by a complaint and appeal (in case of any anomaly); and finally the award.

The Bidding Documents may require, as a condition of acceptability of the proposal, the provision of guarantees, which may be definitive or provisional, and their value meets the maximum limits stipulated in the Regulation. Bank guarantees are normally accepted; cash security; certified check; public debt securities; and guarantee-insurance. The price proposal must be presented in national currency, the Metical, except in the exceptional cases provided for in the Tender Documents.

Read also: How to register a company in Mozambique, step by step

Entities or persons that can apply for public tenders in Mozambique:

Eligible to compete for the contracting of works, supply of goods or provision of services to the Mozambican State are natural or legal persons, national or foreign, who demonstrate legal, economic, financial and technical qualification and who are in a situation of tax compliance.

In terms of qualification requirements, there is a need for proposals to be accompanied by, among others, the following documents: commercial registration certificate and updated statutes; declaration signed by the competitors that they do not incur any impediment; consortium project or consortium formation agreement (in the case of groupings of companies); periodic declaration of income and annual declaration of accounting and tax information; certificate proving registration or enrollment in a professional activity compatible with the object of the contract in question, license or equivalent document issued by the competent entity.

National/Foreign

For the purposes of the Regulation, a “national” competitor is considered to be a natural person who has Mozambican nationality; or a legal collective person that has been incorporated under the terms of Mozambican law and whose share capital is held in excess of 50% by a Mozambican natural person or by a legal collective person whose share capital is majority owned by more than 50% by a Mozambican natural person.

The Contracting Entity may restrict the Tender to the participation of national competitors, whenever it is a contract whose estimated value is less than 5,250,000,000.00 Meticais, in the case of public works contracts, and 2,625,000,000.00 Meticais , in the case of acquisition of goods and services.

The foreign competitor, whether or not he is authorized to carry out his activity in Mozambique, must comply with the general rules set out in the Regulation and must, in addition: have a resident attorney domiciled in the country, with special powers to receive summons, subpoena and respond administratively and judicially for his acts, joining the relevant instrument of mandate with the documents determined in the Regulation; prove their legal, economic-financial, technical qualification and fiscal regularity in the country of origin; prove the inexistence of bankruptcy or bankruptcy petitions in Mozambique and in the country of origin and finally; proceed with the delivery of documents written in Portuguese.

Competitors formed in a consortium or associations are always allowed to participate in the Contests, however, members of a consortium or association cannot participate alone or as part of another consortium or association in the same Contest.

Read also: What is a business center and what are its main advantages?

Publication

The tender process starts with a public notice, which is published by a public sector body to generate bids from competitors that meet the specific requirements defined in the tender notice. It is mandatory to publish the Notice of Tender either in the press or at the headquarters of the Contracting Entity, and in the case of an “International Tender” the disclosure must be made through the Republic Gazette and/or website (www.concursos.co.mz ).

Bid Evaluation and Decision Criteria

Regarding the evaluation criteria, the foreseen rule is the lowest price. Consequently, in general, the lowest price offer is the one chosen for the award. In case of a tie, the final classification of the proposals is determined by drawing lots. The Regulation also provides that, exceptionally, the award criterion may take into account the technical evaluation of the proposal and the respective price. In situations of tie in the evaluation of the proposals, the best technical proposal prevails.

Tender Decision Criteria for Concession

The decision of the Tender for the concession of works or provision of public services may be adopted, observing, individually or jointly, the following criteria: higher price offer for the concession; lowest tariff or price to be charged to users; better quality of services or goods made available to the public; and better service and demand satisfaction.

Contracts – Applicable Rules

The contracts provided for in the Regulation will be set out in writing and must comply with the models contained in the Tender Documents, which must, obligatorily, be submitted to prior inspection by the Administrative Court, within a period of 5 days after their execution. Due to the administrative nature of the Contracts in question, the Regulation provides for certain clauses, designated as essential, such as the Identification of the parties; Object of the contract; Start and end dates; Warranties; Payment terms and conditions; Estimate of the total charge; Applicable sanctions; Judicial or other forum, for the resolution of disputes; Anti-corruption clause; and Other conditions that the parties consider essential for the proper performance of the contract.

The Contracting Entity must demand, when provided for in the Bidding Documents, that the Contractor provide a definitive guarantee, adequate to the good and timely fulfillment of its obligations; and its presentation is a prerequisite for the conclusion of the contract, therefore, payment of an advance without presentation of a guarantee of the same amount is not allowed – with the exception of rare exceptions provided for in the Regulation and subject to certain admissibility conditions.

In general terms, this is the main information about Public Procurement in Mozambique, a country with several potentials and enormous challenges and needs for the execution of mega-projects of public nature, especially in the area of ​​energy, construction of infrastructure , exploration of natural resources and railways.

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Research and prospecting for hydrocarbons in Mozambique dates back to the late 1950s, with the first gas deposit being discovered in 1961 and the first commercial production starting in 2004 by Sasol, in Inhambane province, with proven reserves of 2.6 trillion cubic meters (TCF) and an estimated investment of 1.4 billion dollars.

But if it is true that the history of the extractive industry in the Oil and Gas sector in Mozambique already has this legacy as a whole, the numbers of recent discoveries are, by far, superior to all the investment previously made in the country. As an example, area 1, in the Rovuma basin, led by Total SA hopes to build up to six LNG plants, and the first two plants reached already the final investment decision (FID) in 2019 worth 23 billion dollars .

The creation of infrastructure for the extraction, processing, liquefaction and storage of natural gas has already led to large investments in advance. The coronavirus crisis in mid-2020 led to delays in the development of the Mamba gas field in the Area 4 concession area, which was developed by a consortium led by the US company ExxonMobil. There is also the smaller Campo Coral, also in Area 4, which is being developed under a consortium with the leadership of Italian Eni.

Also last year, Total announced business opportunities for the Golfinho/Tuna Project for the next 6 months. The project envisages contracting with local companies US$2.5 billion, with around 28% of this amount having been fulfilled out so far. Among the opportunities presented, stands out the installation for LNG (onshore), the construction and installation of sub-aquatic systems (offshore) and the construction of the Afungi aerodrome, and more business opportunities in the areas of information technology services, transport , health, catering and security.

Read also: How to apply in a public tender in Mozambique?

Oil and gas in Mozambique, also for domestic consumption…

The Mozambican government determined that part of the natural gas production must be used locally to meet the needs of the internal market, the National Petroleum Institute (INP) organizes tenders to identify companies interested in developing industrial projects. In 2016, Norwegian company Yara International received an allocation to produce 1.2-1.3 million tonnes per year of fertilizers. In addition to that company, Royal Dutch Shell won the concession for a liquefied gas plant (GTL), producing 38 million barrels per day (MB/d) of liquid fuels such as diesel, naphtha and kerosene. Finally, a Kenyan group, GLA, obtained a concession to build a 250 MW power plant.

However, despite the initial optimism, it is important to emphasize that many of these investments are either stopped or in stand-by, due to the coronavirus and fundamentally for security reasons. French oil company Total SA has announced a minimum delay of 12 months, which will push the start of the $20 billion project to at least 2025. Security reasons, including insurgent attacks in Palma, Cabo Delgado, hampered Total’s plans and Exxon Mobil, which also has an LNG project in Mozambique, to turn the country into a major LNG producer to rival Australia, Qatar, Russia and the United States of America. Total SA’s decision to invoke force majeure is seen as a blow to the Mozambican economy, especially for SMEs, since the company would not fulfill its contractual obligations during the period in which this state is in force, and will not allow Mozambique to position itself as an important player in the world energy market. At the same time, this disruption comes at a time when major energy companies are re-evaluating their approach to LNG, once seen as the fuel of the future because it has lower emissions than coal or oil, but which is now under scrutiny in the attempt to cut carbon emissions even further.

Experts in the Oil and Gas sector, however, predict that with this forced interruption and, equally, the crisis generated by Covid-19, local companies have a point in their favor: with the disruption caused by the restriction in the movement of people and goods , the oil and gas industry will become increasingly collaborative and joint ventures with local companies may become a trend to face the limitations of movements and with the way to guarantee the continuity of operations. In this sense, the business fabric can take advantage of this forced break time and accelerate its productivity and competitiveness capabilities to respond to the standards that the industry demands.

The latest events marked by an unprecedented energy crisis in the most industrialized countries, especially in Europe, China and the United States, and the lack of a viable practical alternative to gas may, however, create conditions to accelerate the recovery process in some projects , provided that they are guaranteed necessary security conditions. Analysts linked to the sector indicate that if, at this time, efforts are made to provide training and intensive preparation of the local business community, when there is a recovery and new tenders are launched, it will be possible to see Mozambican companies in joint ventures in the main investment projects planned in the sector. .

Furthermore, government policy is to maximize the use of gas produced in the country to create economic and industrial development in Mozambique, giving a starting point in a local gas consumption industry. So far, Mozambique has granted gas distribution licenses in Vilankulo and Inhassoro, near the Temane gas fields, and in the Matola and Machava regions, which are the country’s main industrial area. Therefore, there is still room for other business opportunities in the areas of oil and gas for industrial, commercial and domestic use in Mozambique.

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