Mozambique: CTA presents its position on the PAE to the World Bank

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Mozambique: CTA presents its position on the PAE to the World Bank

4:08 CAT | 11 Oct 2022

Photo courtesy: CTA

The Confederation of Mozambican Business Associations (CTA) held a working meeting with the World Bank Manager for Macroeconomics, Trade and Investment, Marco António Hernandez Ore, and his team of economists. At the meeting, the PAE measures were discussed, and CTA presented the results of the various consultations with the companies about them.

CTA started by sharing recent business performances, highlighting that the Northern Region of the country reached, in 2021, the largest share of food exports, without, therefore, jeopardizing food security. The main highlights are the 350,000 tonnes of pigeon peas, the 100,000 tonnes of sesame for Middle Eastern countries, cotton and others. For 2022, it is not expected to reach those levels of exports, in terms of food products.

Regarding the PAE, the proposals of the Private Sector were highlighted. In the area of transport, the tax obligation of carrying out the transshipment causes Mozambique to lose US$100 million per year due to this obligation.

The need to make maritime cabotage viable, obliging the Inspection to take place only at the port of arrival.

CTA also highlighted the need to rehabilitate Road Number 1 along its entire length. Because of these constraints, Zambia, which is the largest producer of copper in the region, exports the product through the ports of South Africa, which are 2700 km away, while there is the Port of Beira, which is about 1700 km away, therefore 1000 km closer.

Private education operators revealed that the World Bank, when providing support for education in Mozambique, only does so for public institutions, when the Private Sector plays the same role. High school graduates opt for the Private Sector simply because there is no absorptive capacity in the public sector, which does not mean that these graduates have great financial power.

Finally, it was agreed to organize specific work meetings on the Guarantee Fund, Foreign Exchange Law, organized by trade facilitation and interest rate. The World Bank shared the Economic Memorandum for Mozambique that sets out long-term policy options.

Source: CTA / Press Releas