The president of the Industrial Association of Mozambique (AIMO), Rogério Samo Gudo, believes that the success of the National Industrialize Mozambique Program (PRONAI), launched this year by the government, involves stimulating investments capable of producing and placing the final product on the market with quality and at competitive prices.

According to Rogério Samo Gudo, there is a need to implement a package of incentives, such as exemption from paying Value Added Tax (VAT) on imported equipment.

"There must be exemption from VAT or reduction of the incidence to the levels of the average of the SADC region, which is 14% and not 17% as is established in Mozambique. For example, the Republic of Angola applies the lowest rate which is 7%. Therefore, this, in a way, motivates domestic and foreign investment, in order to increase the economy," explains the president of AIMO.

In this context that, according to Samo Gudo, the Mozambican private sector is in negotiations with the Ministry of Industry and Commerce (MIC) in order to induce reforms in the industrial fiscal policy, so as to boost the sustainable development of the industrial sector.

It should be noted that PRONAI is an initiative that aims to promote the development of the industrial sector, privileging local raw materials, with the goal of reversing the current scenario in which the industrial sector's contribution to the Gross Domestic Product (GDP) does not exceed 8.4%, despite the country's existing potential.

During the 10-year project, about $100 million will be invested by the government and partners to create a credit line to finance the companies.