Mozambique: New Decree Establishes Special Golf Tourism Zone, Incentives

Mozambique's government, through Decree No. 56/2026, has formally established a new Special Zone for Golf Tourism (ZETG) in Inhambane Province, offering significant incentives for projects within its boundaries.

This development signifies a strategic move by the Mozambican government to diversify its economy and attract foreign direct investment into the tourism sector, specifically targeting high-value golf tourism. Projects within the ZETG will benefit from a comprehensive package of incentives, including tax breaks, guaranteed access to reserved land, priority for the repatriation of dividends, and access to a dedicated fund for financing infrastructure, training, and events. This framework aims to create an attractive investment environment by reducing financial and operational risks for developers.

The legal significance of this decree lies in its potential to stimulate economic growth and job creation in Inhambane Province, while also setting a precedent for sector-specific special economic zones. For investors, the explicit provision for priority repatriation of dividends addresses a common concern regarding foreign exchange controls and profit mobility, enhancing Mozambique's appeal as an investment destination. The establishment of a dedicated fund further underscores the government's commitment to supporting the development of the ZETG, potentially through public-private partnerships or direct state investment in enabling infrastructure.

The legal context for this initiative is rooted in Mozambique's broader framework for investment promotion and special economic zones. Decree No. 56/2026 operates within the ambit of existing legislation governing foreign and domestic investment, as well as laws pertaining to land use and fiscal incentives. While the specific details of the tax incentives and fund mechanisms would be elaborated within the decree itself, they are likely to align with or build upon provisions found in Mozambique's Investment Law and relevant tax codes. The key parties involved are the Mozambican Government, particularly the executive branch responsible for issuing decrees, and potential local and international investors in the golf tourism and hospitality sectors.

Practising attorneys advising clients on investment in Mozambique, particularly in tourism, real estate, or infrastructure development, should thoroughly review Decree No. 56/2026. It is crucial to understand the specific eligibility criteria for projects, the application processes for accessing incentives, the precise mechanisms for dividend repatriation, and the operational details of the financing fund. Businesses considering investment in Inhambane should conduct comprehensive due diligence on the land tenure arrangements within the ZETG and assess the long-term stability and enforceability of the offered incentives within Mozambique's evolving regulatory landscape.