Government and private sector discuss business environment improvement | Mozambique

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Government and private sector discuss business environment improvement | Mozambique

2:51 CAT | 22 Mar 2022

Photo: Ministério da Indústria e Comércio - Centro de Informação de Negócios

A meeting recently took place between the Confederation of Economic Associations of Mozambique (CTA) and the Inter-ministerial Group for the Removal of Barriers to Investment (GIRBI).

At the meeting, the CTA presented a variety of factors that they deem to have negatively impacted the performance of the business sector since 2016. These include terrorism in Cabo Delgado, Cyclones Idai and Kenneth, and the outbreak of the Covid 19 pandemic.

Although recognizing the government’s effort to create measures for economic recovery, CTA representatives felt that the existing credit lines carry unsustainable interest rates, above the means of the business community.

During the meeting, the CTA presented a set of proposals for the acceleration of measures enshrined in the government’s Five-Year Plan and in the Action Plan for the Improvement of the Business Environment (PAMAN).

These include:

The need for intermediation between producers, industries and economic agents, with the intermediary being responsible for the entire value chain from transport, drying, storage, distribution with the desired quality, which they consider a viable solution for reducing cereal imports by industries;

VAT review;

The payment of a single fee in the BAU;

The improvement of the conditions of connection between the north, centre and south of the country;

The revision of interest rates in agriculture;

The revision of the tourism tax;

The prompt payment of state debt to companies.

In turn, the Minister of Industry and Commerce, Silvino Moreno, said that the dialogue aims to find mechanisms to overcome the difficulties that the sector faces, identify a possible process with effective communication, and survey problems and possible solutions.

According to the minister, the government is committed to accommodating the proposals of the private sector, although the process will not be immediate, but gradual. Some changes, due to their impact on the national economy, require channelling and deliberation in their own forums.

“It is necessary to work together to eliminate the grey areas. It is necessary to bring about changes and everyone is working for this to happen,” the minister said.

Silvino Moreno said the work of restructuring procedures was in progress, pointing as examples to changes in the commercial code and the customs tariff.

Meanwhile, regarding the review of the customs tariff, the government was awaiting the presentation of proposals from the private sector in relation to charges subject to exemption from fees.