Cooperatives in Mozambique use the New General Law of Cooperatives number 23/2009 (Law no. 23) as the national cooperative legislation. Law no. 23 provides for cooperatives to be linked to organized systems in union, federations and confederations, in order to reinforce the importance and contribution of a strict system of supervision and regulation for the good governance and security of the whole sector. The seven ICA cooperative principles are duly recognized and incorporated in Law no. 23.
However, it must be noted that the cooperative movement in Mozambique still awaits the approval of legal instruments and regulations by the government to operationalize Law no. 23.
From the view of ICA contributing member organizations, Law no. 23 is to a high degree 'cooperative friendly' as embodied in Article 6 of Law no. 23. However, the lack of a specific tax regime applicable to cooperatives is a great constraint and hampers the development and growth of cooperatives in Mozambique.
The seven cooperative principles promulgated by the International Cooperative Alliance (ICA) in its Statement on the Cooperative Identity are duly recognized and incorporated in Law no. 23.
Key recommendations for improvement
- The approval of legal instruments and regulations for the full operation of cooperatives.
- Create a tax regime for the cooperative sector as a way of encouraging the establishment of more cooperatives and contributing to the economic and social development of the cooperatives in the country.
For cooperatives to perform more effectively and productively, there is an urgent need for the government to approve regulations to implement Law no. 23.