Mozambique: Interest rate cut will boost investment, lower costs - businesses
Photo: Domingo
Mozambican Prime Minister Benvinda Levi on Friday promised Mozambican business leaders that the government will work on legal reforms to ensure a more business-friendly environment in the country.
“Our commitment is to improve the current legal framework and implement reforms that ensure the continuous improvement of the business environment in our country, recognizing the role of the private sector as a strategic partner in the process of economic, social, and sustainable development of our country,” said the prime minister in Maputo, during the closing moments of the ninth Business Environment Monitoring Council.
“Concretely, we will continue to adopt policies and regulations that contribute to boosting the economy, correcting economic imbalances and asymmetries, as well as ensuring efficient public services that make the business sector more dynamic, engaging, and vibrant,” the prime minister said.
At the joint meeting with the Confederation of Economic Associations (CTA) of Mozambique, the largest private sector representative in the country, Levi stated that the provision of efficient public services will also allow for “greater procedural speed, eliminate administrative and infrastructural barriers, and take advantage of the benefits of the digital age”
The government and the private sector should adopt a “more creative and innovative” approach that clearly defines each party’s role, allowing everyone to effectively assess the degree of implementation of the actions agreed upon by each party within the framework of the public-private dialogue.
“It is in this context that the establishment of a structured regulatory framework for the management, implementation, and monitoring of reforms to improve the business environment is recommended,” said Levi, adding that the instrument should be developed “as soon as possible” to enable the effective and more structured implementation of the reforms over the next five years.
During the meeting, the CTA requested that the Local Content Law not focus solely on the oil and gas industry, but be extended to local purchases.
“It is essential to expand its scope to public procurement in order to prioritize goods and services that incorporate domestic raw materials, local labor, and Mozambican capital or capital invested in Mozambique,” CTA President Álvaro Massingue urged.
The proposed Local Content Law is currently under public review. It requires oil and gas companies in the country to purchase locally produced goods and services and hire local labour.
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