Mozambique: Government to consider Local Content Law “within weeks”

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Mozambique: Government to consider Local Content Law “within weeks”

3:39 CAT | 26 May 2022

Photo: Domingo

The government is working to create a legal framework that obliges multinationals operating in Mozambique to use local companies in their chain of production and supply of goods and services.

This information was released in Maputo on Tuesday morning by Deputy Minister of Economy and Finance, Milton Tivane, during the opening of the first edition ever of the International Fair of Micro, Small and Medium Enterprises (MSMEs).

Deputy Minister Tivane said that “ the government will consider, in a few weeks, the proposed Local Content Law”.

Speaking on the same occasion, Feito Tudo Male, president of the Association of Small and Medium Enterprises (APME), said that the lack of a local content law, together with the lack of financing lines and the tax burden, were the main challenges for these business segments.

In turn, the president of the CTA, Agostinho Vuma, called for the reduction of the tax burden in the country because the current economic situation is suffocating companies.

Vuma further noted that, in the midst of the effects resulting from climate change, terrorism, Covid-19 and the recent Russia-Ukraine war, the country recorded a drop in credit supply prospects from 58% in 2019 to 50% percent in 2022, of which only 2% is allocated to agriculture.

The International Fair of Micro, Small and Medium Enterprises took place from 25 to 26 May in Maputo, organised by the APME with the participation of representatives from Brazil, Portugal, Angola, Botswana, Malawi and South Africa.