Private sector calls for rapid improvements in the business environment

Sector privado pede rápidas melhorias no ambiente de negócios

The Confederation of Business Associations of Mozambique (CTA), the country's largest employers' association, wants the government to be quicker to approve reforms that will improve the business environment, according to a statement setting up a joint platform.

Vasco Manhiça, vice-president of CTA, asked the government for a greater speed in the approval of reforms, "from an average of two per year, to more than three," similar to what happens "in the sub-Saharan African region," reads the note launching the harmonization platforms of the Interministerial Group for the Removal of Barriers to Investment (GIRBI).

"We hope that this forum will be a platform for us to reflect on the implementation of the Action Plan for the Improvement of the Business Environment (PAMAN), as it expires this year," he said.

PAMAN is a list of 55 measures to make Mozambique more attractive and businesses more competitive, launched in 2019.

The execution of the plan is around 43%, said the vice-minister of Industry and Trade, Ludovina Bernardo, during a speech made on Friday, in Maputo, during the launching of the new platform.

The governor considered that there has been "remarkable progress" despite the challenges arising from terrorist actions in Cabo Delgado and the covid-19 pandemic.

CTA hopes that, given the challenges, the instrument will be extended beyond 2021.

The business confederation also proposes the introduction of a reform monitoring indicator in partnership with the Ministry of Industry and Trade.

Deficiencies in Value Added Tax (VAT) refunds, lack of flexibility in international trade, and delays in simplifying the Commercial Code and the insolvency legal regime are some examples pointed out by employers as obstacles to a good business environment.

"Improving the business environment is a process that does not end with the passage of laws, but is continuous, given the need for effective and correct implementation" of those same laws, the CTA stressed in 2019, after launching PAMAN.

Lusa Agency

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