Lack of legal knowledge and judicial weakness affect businesses in Mozambique – report

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Lack of legal knowledge and judicial weakness affect businesses in Mozambique – report

8:43 CAT | 17 Feb 2016

Lusa (File)

The lack of legal knowledge and the absence of a strong judicial system are still challenges for the business environment in Mozambique, according to a report which analyses corporate governance in 13 African countries.

“Despite the reforms that have been introduced, including the Commercial Code, there is still considerable lack of public knowledge of laws and regulations related to the business environment and corporate governance,” reads the document produced by the African Network for Corporate Governance and the Institute of Directors of Mozambique and launched on Tuesday (February 16) in Maputo.

The document notes that companies in Mozambique are usually small, and says that the country still has a weak judicial system, representing a challenge to the business environment.

“Generally, companies in Mozambique are small, which means that corporate governance is seen as relatively expensive,” the authors of the report write, going on to advise Mozambique to streamline access to information regarding laws and regulations as a means of increasing the level of corporate governance in the country.

Source: Lusa