Mozambique: Government approves regulation of the law on SMEs
Photo: CTA
The Confederation of Business Associations of Mozambique (CTA) recently hosted a World Bank team led by Sidy Diop, Lead Procurement Specialist, and also including Senior Procurement Specialist Amos Malate and Program Assistant Brígida Tchamo. The meeting aimed to announce the intention to conduct a Business Outreach Workshop aimed at the private sector and to analyse how companies can prepare for the event to be interactive and productive. The sectors covered include construction, consulting, and supply of goods and services.
The Business Outreach workshop will aim to share business opportunities within the scope of projects financed by the World Bank; to obtain feedback on how to improve procurement practices in Mozambique; to consult the private sector on various issues related to the business environment in Mozambique, with a focus on constraints in accessing opportunities under the financing provided by the World Bank to the Government of Mozambique.
With regard to simplifying procurement processes, the World Bank has shared experiences of flexibility in procurement in other countries affected by fragility, conflict, violence or emergencies. Examples of such flexibility include increasing advance payments to selected companies by up to 40%, or applying bid guarantees instead of bank guarantees.
With regard to its contribution to improving the business environment in Mozambique, the World Bank continues to support the Government in its reforms. A notable example is the recent launch of the Electronic Public Procurement (e-GP) project, a technology-based system for managing public procurement, which aims to increase transparency, simplify the public procurement process and reduce bureaucracy.
During the meeting, the private sector recommended that the World Bank segment tenders, because small and medium-sized enterprises (SMEs) often have to compete with non-governmental organizations and large companies. This issue was clarified during a meeting.
The private sector raised concerns about the high qualification requirements in tenders for national companies, and proposed that all tenders be in accordance with the National Procurement Regulation, which grants a margin of national preference.
In addition, it was suggested that reforms be implemented to reduce bureaucracy in order to increase the participation of Mozambican companies in these processes.
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