Doing Business: Private sector recognizes leadership of Filipe Nyusi

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Doing Business: Private sector recognizes leadership of Filipe Nyusi

1:39 CAT | 19 Dec 2018

Ragendra de Sousa - Minister of Industry and Commerce, Filipe Nyusi - President of Mozambique, Agostinho Vuma - CTA's President & Businessman

The private sector believes that the leadership of the President of the Republic, Filipe Nyusi, in the process of more sensitive reforms in the Public-Private Dialogue (DPP), has helped raise three positions in Mozambique in Doing Business.

This rise marks the reversal of the fall of Mozambique, which had been registering for three consecutive years.

The information was recently advanced by the president of the Confederation of Economic Associations of Mozambique (CTA), Agostinho Vuma, during the end-of-year toast, which brought together businessmen and members of the association.

According to Vuma, this rise is not worth the number of positions the country has managed to achieve, but rather by the reversal of the trend that has been taking place and by the message that is being sent to the international market about Mozambique’s commitment to the implementation of reforms, aiming at improving the business environment.

However, no one is satisfied, Mozambique’s rise in the Doing Business ranking could have been even higher.

According to the source, data analysis shows that, of the three variables evaluated, namely, cost, time and procedures, the cost variable was the one that penalized Mozambique in Doing Business, and the overall, 438 per cent, from 2015 to this part.

In the indicator on obtaining a building permit, Mozambique was the best ranked in the whole of Southern Africa, until 2016, in position number 30. From there to this part, the country fell 34 places, and one reason was the rise in time waiting for the license to be obtained.

“Now, by compiling this estimated waiting time in 118 days, it is noted that about 40 days are spent on various inspections: this is not reasonable! We can make the time to obtain construction license fall 40 days, simplifying the inspections, which, of course, will be accompanied by a reduction in the number of procedures from 11 to 7, catapulting Mozambique into an enviable position in Doing Business, “said Vuma.

“The CTA is working with the Government to put a brake on some measures, which produce few benefits to the State, meanwhile, deteriorate the business environment. One of these measures has to do with neutralizing the tendency of the various sectors of the State to introduce rates and more taxes, which further burden business activity, “he said.

Therefore, according to Agostinho Vuma, they are of the opinion that the Ministry of Economy and Finance holds the exclusive responsibility of the administration of the entire tax system, namely taxes, taxes and other sectoral charges.

Source: Jornal Notícias