Mozambique needs more SMEs, says UN

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Mozambique needs more SMEs, says UN

12:41 CAT | 27 Apr 2018

Mozambique needs to create more small and medium-sized enterprises to take advantage of extractive sector megaprojects, the United Nations Industrial Development Organisation (UNIDO) representative in the country has said.

“This sector is still 70 percent characterised by informal micro-enterprises,” Jaime Comiche said during the 6th Conference on Mines, Energy and Natural Gas, quoted by the Mozambique Information Agency (AIM).

Mega-projects such as coal mines or gas liquefaction are often forced to import equipment, consumables and services from overseas because of the lack of local companies able to guarantee their supply.

With the projected increase in megaprojects for natural gas and mineral extraction, a window of opportunity opens up, Comiche argued, in line with what has been detailed by various entities in the business sector in defence of so-called “local content”.

“The business environment needs to increase the number of formalised companies,” the UNIDO representative declared. A network of SMEs would be needed if megaprojects were to create jobs and sustainable development.

The Confederation of Mozambican Economic Associations (CTA) said in January that the approval of the Law on Local Content should be a priority for the Mozambican parliament in order to guarantee benefits for Mozambican small and medium enterprises in the extractive industry.

“The approval of the local Content Law by parliament should be a national priority, since only this law will allow Mozambicans to participate in the economic development of the country,” the CTA said.

Source: Lusa