MOZAMBIQUE Law and Practice Contributed by: José Miguel Oliveira, Kenny Laisse and Caio de Mello Ferreira, VdA
(Articles 437 and 438) or impossibility of performance of contracts (Articles 790 to 793). Abnormal Changes in Circumstances Article 437 of the Civil Code applies whenever the cir - cumstances on which the parties based their decision to enter into an agreement have suffered an abnormal change. As a result, the party that has been adversely affected by that change may terminate the agreement or ask for its modification based on equity, provided the party demonstrates that it could not have pre - dicted the event and its consequences and that there is a causal link between the event and the failure to perform. However, the above-mentioned regime includes very strict requirements in order to be invoked, since it is not enough to demonstrate the difficulty in performing the contract, but rather that the abnormal change is not covered by the risks inherent to the contract, and that requiring the performance of the agreement is contrary to the principles of good faith. Impossibility of Performance If the contract becomes impossible to perform, Arti - cles 790 to 793 of the Civil Code are applicable, estab - lishing different consequences based on whether the impossibility is total or partial and definitive or tem - porary. 9.2 Enforcement of the IMO 2020 Rule Limiting the Sulphur Content of Fuel Oil For the time being, Mozambique has not approved specific domestic legislation dealing with the sulphur content of fuel oil used on board ships – with all this implies in terms of enforcement of the international standards on sulphur content limitations. However, there are now some players in the market that have started to provide fuel oil in compliance with the “IMO 2020” regulation. 9.3 Trade Sanctions Mozambique formally recognised and enforced the international economic sanction against Rhodesia (now Zimbabwe) in 1976, and decided to close all its
borders with said country, in full implementation of the relevant decisions of the United Nations. However, this was part of a political decision and was enforced by means of a Presidential communication to the nation, published in the official gazette on 3 March 1976. Mozambique has not approved any statute specifi - cally governing the enforcement of international trade sanctions. However, the Bank of Mozambique has approved Notice No 10/GBM/2024 of 30 August 2024 containing the rules and procedures to be adopted by commercial banks in order to conduct proper KYC and risk assessment analysis in relation to all opera - tions requested by their clients, and to ensure compli - ance with any applicable international sanctions. Currently, there are sanctions in place against indi - viduals and legal entities in Mozambique, in particular the Islamic State operating in Cabo Delgado Province. 9.4 International Conflict Mozambique remains neutral on the war in Ukraine. It has called for dialogue and abstained in the UN Gen - eral Assembly’s resolutions condemning Ukraine’s invasion by Russia. No sanctions on Russian individu - als and/or entities by the Mozambican government are currently in place. 10. Additional Maritime or Shipping Issues 10.1 Other Jurisdiction-Specific Shipping and Maritime Issues As part of the ongoing legislative reforms, the Mozam - bican government, through the Institute of Maritime Transport (ITRANSMAR), has launched a tender for the review of the main statutes dealing with maritime and shipping matters, with the aim of codifying the key matters in a single statute, to be complemented by specific regulations on a case-by-case basis. INAMAR also sought an opinion from the private sector, through the CTA – Confederation of Economic Associations of Mozambique – on the proposal for a Regulation on Maritime Cabotage Transport.
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