Mozambique private sector slows in January
The Confederation of Business Associations of Mozambique (CTA), which celebrates its 20th anniversary in 2016, has announced that it will resume the monitoring of the business environment at central and provincial level this year.
The CTA also plans to complete the implementation by June of this year of the reform agenda outlined in the memorandum signed in August 2015 between the government and the private sector.
As a representative of the business sector, the CTA intends to revitalise the joint CTA/government Business Environment Monitoring and also the Expanded Private Sector Councils at both central and provincial level.
Consultations are underway to revitalize the official public-private dialogue and discussions with the government on issues of interest to the private sector and solutions. In order to help Provincial Business Councils manage the public-private dialogue at provincial level, CTA will hire provincial managers and train representatives.
Developing awareness and observance of business law, paying taxes and the formalization of businesses and fighting tax evasion and corruption are also among the CTA priorities for 2016.
This year will be marked by a number of activities celebrating the CTA’s achievements, culminating in a gala to be held at the end of April. One of these will be building the House of The Entrepreneur and CTA delegations in all the provincial capitals, and the evaluation of the impact of reforms in the business environment.
In 2015, Mozambique fell six places from 127 to 133 in the international Doing Business ranking, an important indicator of Mozambique’s image among foreign investors. The decline, coupled with the current economic climate, will only exacerbate investor uncertainty regarding Mozambique.
However, the CTA considers the reform of the public-private dialogue and the associated agenda of reforms an important 2015 milestone.
Among these reforms the CTA highlights the regulation of exceptional public holidays decreed by government (‘Tolerâncias’); legislative authorization for the creation of central private credit information management; amendment of the civil aviation legal framework; and the waiver of fines for companies due to delays regarding discounts to the National Social Security Institute (INSS).
Approval by the Council of Ministers of eight legal instruments, including the revision of decree 15/2010 on Procurement and the approval of the decree on travel agencies is expected to benefit the private sector directly, but overall, the current business climate has not been favourable, even without the increase in foreign trade transaction costs.Source: Rádio Moçambique
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