Review of the Law on Cooperatives in Mozambique (1979) – Phase II

Client – NPCM (Center for the Promotion of Modern Cooperatives in Mozambique) – UNAC, FRUTISUL, CLUSA, APAMO)
Location – Mozambique
Year – 2007 – 2008
Time – 6 months

Commercial cooperatives in Mozambique are an important form of association and a legal entity for farmers to defend their economic interests. There are networks of cooperative companies formed, especially in central and northern Mozambique over the past ten years.

Farmers understand and are interested in joining these cooperative structures, if they offer real benefits to their members. For this, there is a clear need to review the legislation of the cooperatives of July 10, 1979 (Law No. 9/79), still from the time of socialism, with a new draft code under discussion since 2001.

This study, foresees and formulates general observations on the draft code relating to the concept of cooperative organization, taxes, methods of legislation and the capitalization of its members. This economic analysis of the cooperative will be the basis for the legal adjustment of the cooperative in the Law on Cooperatives.

The study, in conjunction with international legal advisors, wrote the part of the explanatory memorandum draft that concerns the cooperative’s economic analysis, giving a legal justification on the basis of the legal adjustment, and took steps to ensure that this agreement covers a wide range stakeholders (farmers, “cooperatives”, Ministry of Justice, politicians, parliamentarians, etc.).

“Translate” the concept discussed internationally to the circumstances of Mozambique before starting to write a draft law, wrote the statutes of the cooperatives, discussed the draft statutes widely, adapting the proposed Law of Cooperatives to the Mozambican legal system.

Provide an explanation to justify the cooperative as a legal entity in the legal system (eg civil law, right to legal persons; tax law, etc.).

The proposed law should be submitted to Parliament for approval in December 2008, involving all interested parties to receive contributions for the drafting of a new cooperative law in Mozambique, with the capacity, in addition to other legal aspects, to create a framework legal favorable, for some types of associations to be able to make profits in their activities.

The project also included consultations with lawyers and national and international cooperative organizations, including members of the Mozambican Parliament to produce the “Draft law on the cooperative”.