(Commonwealth Union)_In Mozambique, land belongs to the government and cannot be bought, sold, financed or charged. The only means of access to land permitted by law, aside from occupation, are special licenses and the right to use and benefit from land (Direito de Uso e Aproveitamento da Terra, or “DUAT”), Law No. 19/97 of 1 October (Land Law) and Decree No. 66/98 of 8 December govern Land Use and Benefit Rights (DUATs) (Land Law Regulation).
Therefore, a land use and benefit title, also known as a DUAT, must be applied for in order to purchase land directly from the State (Direito de Uso e Aproveitamento da Terra). If a foreigner has lived in Mozambique for more than five years, they may apply for a DUAT. It is necessary for international businesses to register or incorporate in Mozambique.
According to the law, a foreign company is any organization that was incorporated under Mozambican or foreign law and in which foreign individuals, organizations, or enterprises hold a majority of the stock.
Holders of DUATs may transfer infrastructure, buildings, and other properties on the subject property by presenting a public deed that is accompanied by an authorisation from an appropriate state agency. The application must be supported by a project that has been approved (according to the Investment Legislation) and an environmental license following an evaluation of the project’s environmental and social impacts (Legislation on Environment).
Until the project has reached a significant and verifiable phase of implementation, all investors are given a provisional right that is valid for two years. Once a project has been approved, a definitive DUAT is given, allowing the investor to secure ownership for up to 50 years, with an additional 50 years of renewal rights.
The DUAT issued by the State is a private right that is difficult to cancel under the legal framework created by the Land Law for acquiring and exercising land rights. Additionally, it benefits from Article 82 of the Constitution’s general guarantees of property rights.
Only when it is in the public interest or necessary (such as when building a public infrastructure), the State may revoke a DUAT, but it must first provide a reasonable and just compensation (Constitution, Article 82, number 2, and Land Law Article 18). The DUAT may also be cancelled if the land is not being used in accordance with the project for which it was given or with environmental, social, and other standards.
In urban areas, the DUAT of a plot automatically passes to the buyer of a home or other structure. In rural areas, the buyer of crops, physical infrastructure, or improvements must ask the government for permission to transfer the DUAT into his or her name.
