The Confederation of Mozambican Business Associations (CTA) believes that the business environment in the country may improve with the likely introduction of new regulatory instruments in the second quarter of the current year.

CTA's expectations are based on the possibility of revision of the Labor Law, introduction of the electronic visa, General Regulation on Access to Off-Grid Power, as well as the revision of the Land Policy and Law for the removal of barriers in the sector and the Regulation for the Exercise of Ship Agency Activity.

The CTA's desire is embedded in the recently released business robustness index, a document that makes a comprehensive assessment of the performance of companies during the first quarter of 2021, which shows a reduction from 40 to 28% compared to the last quarter of 2020.

About the Labor Law, CTA understands that the legal framework in force for more than 10 years no longer responds to the dynamism resulting from globalization and tendencies to make labor relations more flexible.

"This law should ensure business competitiveness, creating conditions for increased formal employment, promoting entrepreneurship and attracting foreign investment," the document stresses.

It also advocates the need for electronic visa authorization in the country, which will translate into reduced waiting time for the issuance of the visa and reduction of other costs.

"There are people who had to travel from one province to another to deal with the visa," the report quotes. The source adds that "there is also an expectation about the General Regulation for Access to Off-Grid Energy. The changes in the law about this sector aim to ensure the use of clean and environmentally friendly energy, increasing the competitiveness of the sector, which will contribute to the massification of access to energy by the population.

"Among others, the regulation is expected to serve as a platform for the adjustment of the customs tariff regime applied to energy production equipment, from renewable sources, and contain a framework of incentives for scientific research and innovation oriented towards new technologies," the report reads.