Over the past few decades, Portugal and Mozambique have been consolidating their bilateral relations through a series of agreements aimed at fostering cooperation in several strategic sectors. The areas covered include the economy, trade, industry, health, education and, in particular, the prevention of double taxation, promoting a more favourable business environment. These agreements between Portugal and Mozambique establish the basis for mutual development and encourage the exchange of goods, services and investments between the two countries. Since the signing of more than 30 bilateral agreements, both governments have sought to increase economic and trade integration.
Historical Context of Bilateral Relations
The relationship between Portugal and Mozambique has deep historical roots, dating back to the early 16th century, when the first Portuguese navigators reached the coasts of East Africa. Over centuries of colonization, this relationship evolved, culminating in Mozambique’s independence in 1975. After a period of estrangement in the early years of independence, relations began to warm up in the 1980s. The turning point came with the official visit of the then Portuguese President António Ramalho Eanes to Mozambique in 1981, followed by reciprocal visits by leaders of both countries, marking the beginning of a new era of cooperation.
Cooperation Agreements between Portugal and Mozambique
Promotion of Small and Medium-sized Enterprises
In the economic sphere, the promotion of small and medium-sized enterprises (SMEs) has been a priority in cooperation policies between Portugal and Mozambique. SMEs play a key role in job creation, both in the industrial and service sectors, and contribute significantly to the economic growth of both countries. Through support and incentive programmes, governments have promoted the development of these companies, especially in sectors such as agro-industry, construction and renewable energy, fostering the creation of jobs and the training of skilled workers.
Trade Balance between Portugal and Mozambique
Trade between Portugal and Mozambique has been regulated since 1981 by the Trade Agreement, which facilitated the exchange of goods and services. This agreement allowed Portugal to export mainly machinery, equipment and industrial products to Mozambique, while importing agricultural products such as cereals and tropical fruits. Although the trade balance has historically favored Portugal, the two countries have worked to diversify and balance these exchanges, promoting greater inclusion of new sectors in their trade relations.
Investment Protection and Promotion
Legal security for investments was strengthened by the Agreement on the Promotion and Reciprocal Protection of Investments, signed in 1996. This legal instrument offers guarantees to investors from both countries, protecting them against risks such as expropriation and ensuring the repatriation of profits. The agreement opened the door to Portuguese investment in Mozambique, especially in key sectors such as agriculture, energy and infrastructure. In return, Mozambican investors find a favourable regulatory environment in Portugal, which facilitates access to the European market and offers similar protection.
Cooperation in the Industrial Sector
Since the 1980s, the Economic Cooperation Agreement and the Industrial Sector Protocol have been instrumental in driving industrialisation in Mozambique. Portuguese companies have found opportunities in areas such as construction, energy and infrastructure, contributing to Mozambique’s sustainable development. In addition, these partnerships have provided the transfer of technology and know-how, fostering the growth of Mozambican productive and industrial capacity.
Double Taxation Convention
Another relevant point in the cooperation between the two countries is the Convention for the Avoidance of Double Taxation, signed in 1991 and revised in 2008. This agreement aims to eliminate double taxation on income and prevent tax evasion, making investments more accessible and attractive. This convention has facilitated the mobility of professionals and workers, providing a more favourable environment for Portuguese citizens residing in Mozambique and Mozambicans working in Portugal.
Investment Support Institutions
Organisations such as the Portugal-Mozambique Chamber of Commerce and other cooperation agencies play a crucial role in supporting entrepreneurs and investors from both countries. These organisations promote the exchange of information, help identify investment opportunities and facilitate dialogue between the public and private sectors. Portugal is one of the main investors in Mozambique, with emphasis on sectors such as real estate, tourism, banking, energy and transport.
Cooperation in the Education and Technical Training Sectors
Cooperation programmes in the field of education and technical training, established since 1985, have been essential in the development of human capabilities in Mozambique. The training of Mozambican staff in Portuguese educational institutions and joint scientific research projects have contributed significantly to the development of human capital in Mozambique, strengthening ties between the civil societies of the two countries.
Bilateral agreements between Portugal and Mozambique have been fundamental in strengthening their economic and social relations, benefiting entrepreneurs and citizens of both countries. Through legal guarantees, technological cooperation and agreements that promote the mobility of workers and professionals, these treaties have created a more stable and secure business environment. The positive impact of these agreements is reflected in the modernization of the Mozambican economy and in the access of Mozambican investors to the European market. This mutual cooperation has been a lever for the sustainable development and economic growth of Portugal and Mozambique, strengthening the historical and cultural ties that unite the two peoples.
