The Assembly of the Republic unanimously approved the Crowdfunding Legal Framework Proposal on Wednesday, November 11, aimed at expanding access to financing for Micro, Small, and Medium Enterprises (MSMEs).
The government initiative seeks to create alternatives to traditional financing mechanisms, enabling businesses and other beneficiaries to obtain financial resources through collaborative funding platforms.
Presenting the proposal on behalf of Finance Minister Carla Louveira, Minister of Public Works, Housing and Water Resources, Fernando Rafael, stated that this initiative forms part of the government’s efforts to foster a more dynamic, inclusive, and competitive economy that generates opportunities for Mozambicans.
The new framework outlines four types of crowdfunding: equity, loan, donation, and reward-based financing. Additionally, it introduces five essential mechanisms, including mandatory registration of involved entities, protection for funders and investors, transparency requirements, measures to prevent conflicts of interest, and the introduction of a custodian role.
Fernando Rafael believes that the law’s approval will facilitate access to financial resources, particularly through equity and loan modalities, thereby stimulating economic development.
The government contends that regulating crowdfunding will contribute to the nation’s economic independence by creating new investment opportunities and supporting the growth of domestic enterprises.
