Electronic Transactions in the Mozambican Legal System

The fast-paced evolution of information and communication technologies has brought a notable change in how operations and interactions occur, mainly through the growing use of the Internet, digital platforms, and electronic services. This new reality naturally calls for the establishment of suitable rules to ensure secure transactions and communications.

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As in other legal systems, in Mozambique there has been a progressive commitment by the lawmakers to develop and implement rules that regulate these electronic transactions so that the country can keep up with the rapid technological evolution and the growing use of digital platforms that have been adopted globally, as well as enabling efficiency, transparency and accessibility of public services through the implementation of e-government, thus boosting socio-economic development in the country. 

To some extent, the Constitution of the Republic of Mozambique and the Mozambican Civil Code have long established rules on privacy, data protection and reservation of the intimacy of private life.

In 2017, the legal framework for electronic transactions was established by Law no. 3/2017, of 9 January (“Electronic Transactions Law”), with the purpose of regulating electronic transactions, e-commerce and e-government, in order to ensure the security of information technology providers and users.

Although the Electronic Transactions Law contains various rules on the matter in question, which will be addressed below, many of these rules refer to regulations that will have to be enacted for its full implementation. These regulations, however, have been progressively enacted. Initially, these regulations were published relatively slowly, unlike what is happening currently, due to the need to keep up with digital operations taking place in Mozambique.

The Electronic Transactions Law sets out the principles, general rules and legal framework for electronic transactions in general and, in particular, for e-commerce and e-government, to be complied with in Mozambique, and applies to all individuals and corporate entities, public or private, who use information and communication technologies in their activities, namely electronic or commercial transactions and e-government.

The objectives of the Electronic Transactions Law, according to the referred Law, should be pursued by the entities that, under applicable legislation, have responsibility over each of the identified domains and are, briefly, the followings:

1. regulate and discipline activities within the scope of electronic transactions;
2. establish a legal framework that allows electronic commerce, e-government services, data messages, and electronic communications to be conducted swiftly and securely;
3. create a sanction regime for cyber infractions, thus ensuring consumer protection;
4. promote public and private investment in the information and communication technology sector and the internet, as well as promote and make available information technology networks and services; and
5. ensure the authenticity, integrity, and reliability of data messages and electronic communications through the legal recognition of data messages.

The Electronic Transactions Law also establishes the rules applicable to the access, collection, processing or electronic disclosure of personal data and the rules applicable to the data processor, as well as the rights of the data holder.

In relation to the data processor and the rights of the data holder, the Law establishes rules for the protection of personal data against risk, loss, unauthorized access, destruction, use, modification or disclosure, forbidding access to archives, computer files and records or databases for the purpose of obtaining information on the personal data of third parties, as well as the transfer of data from one informatics file to another belonging to different services or institutions, apart from a few exceptions established in the Law.

The Electronic Transactions Law has also encouraged the development of e-government services, such as the provision of services electronically in public administration, the acceptance of electronic archive and issuance of documents and the digital certification system, which is an important step towards the modernization of public administration and the improvement of public services, thus contributing to better efficiency in the analysis, transparency and swiftness of proceedings.

The Electronic Transactions Law marked a first step towards the development of a more comprehensive and solid Mozambican legal framework, which is demonstrated by the enactment of a number of subsequent pieces of legislation on matters related to and based on this Law, most notably the following legal diplomas:

1. The Regulation on the use of the “mz” domain, approved by Decree no. 82/2020 of 10 September, which sets forth the terms and conditions applicable to the management, reservation and registration of names under the domain of Internet “mz”, establishes the rules for registration of domains and subdomains, the application of licensing fees and annual use of the domain, the rules and licensing of registrars, as well as defines penalties for fraudulent or abusive use of the domain;
2. The Legal regime for commercial contracts, approved by Decree-Law no. 3/2022 of 25 May, which addresses electronic contracts and smart contracts, although they still lack specific legislation governing same;
3. The new Commercial Code, approved by Decree-Law no. 1/2022 of 25 May, which makes reference to the use of electronic means for the registration and inscription of corporate acts, as well as mentioning a publicly accessible website, with the electronic address of the entity responsible for registration, for the publication of communications that the law requires to be published, which are addressed to shareholders or creditors;
4. The Regulation on the Registration and Licensing of Intermediary Providers of Electronic Services and Operators of Digital Platforms, approved by Decree 59/2023 of 27 October, which represents a major contribution to the development of the sector of information and communication technologies, by specifically defining and regulating the requirements for the registration and licensing of operators of digital platforms and intermediary providers of electronic services.
   
   In particular, this Regulation establishes that intermediary providers of electronic services and operators of digital platforms offering services in Mozambique, even if they do not have an establishment in national territory, must be licensed for this purpose, in accordance with the provisions of the Regulation.
   
   The Regulation defines the following as categories of intermediary providers of electronic services: (i) intermediary provider of mere conduct service, (ii) intermediary provider of caching service, (iii) intermediary provider of hosting service, and other providers to be defined by resolution of the Information and Communication Technologies (ICT) Regulatory Authority.
   
   In turn, the following are categories of digital platforms: (i) digital market platform, (ii) digital search platform, (iii) digital repository platform, (iv) digital communication platform, (v) digital community platform, (vi) digital payment platform, among others to be approved by resolution of the ICT Regulatory Authority.
   
   The entrance into force of this Regulation is fundamental to modernize and encourage the development of new businesses by companies, investors, and entrepreneurs aiming to establish themselves in Mozambique and develop digital platforms and electronic services. Moreover, it is important for the safety of users of these platforms and services, given their increasing use worldwide.
5. The Regulation on the Registration of Legal Entities, approved by Decree-Law 1/2024 of 8 March, formalizes the possibility of submitting processes remotely to the Legal Entities Registrar Office, through a portal for submission of processes of the Legal Entities Registrar Office, as well as the issuance of Commercial Registration Certificates, which are now issued “in forms of an approved model and duly sealed or in an electronic format of an approved model with a barcode that gives access to the Legal Entities Registrar Office portal for authenticity consultation”.

The approval of the aforementioned legal diplomas is important not only to promote trust and protection for users and businesses in the digital environment but also to facilitate Mozambique's integration into the global economy, while fostering technological innovation in the country and Mozambique's inclusion in the “digital world”.

There should be further development of regulations to enable the full applicability of the Electronic Transactions Law, so as to protect individuals and entities, whether public or private, who use information and communication technologies, from fraud and other forms of exposure, allowing individuals and companies in general to engage in the digital economy in a dynamic, secure and reliable way.

As technology evolves rapidly, it is crucial for the Mozambican legal framework to keep pace with these changes, allowing the country to position itself and take full advantage of the opportunities that the digital economy offers globally.s will impact this corner of the market when it starts to implement the Competition Act.

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Read the original publication at CGA