Supporting the Policy Enabling Environment for Development

Making import and export easier and less expensive.

In 2016 Mozambique ratified the Trade Facilitation Agreement (TFA) of the World Trade Organization (WTO). The agreement aims to make import, export and transit operations easier and less expensive.

WTO estimates suggest that if fully implemented, the agreement could reduce the costs of trading by 14%, and stimulate an additional 1 trillion USD of trade per annum, with the biggest benefits in developing countries.

Implications of the ratification of the agreement include a commitment to implementing reforms in trade, including simplifying procedures, making information more widely available, consulting with the private sector on key issues, reducing the costs of services, and improving coordination between border agencies. Of particular note is that the agreement prohibits Pre Shipment Inspection, whereby goods are inspected in their country of origin before being transported to Mozambique. A case study of ‘KM4’ at Ressano Garcia was presented, highlighting clear areas for improved efficiency and high costs for traders.

SPEED+ is supporting the Government of Mozambique in implementing the measures required to become compliant with the TFA, and to address many of the inefficiencies and costs involved in trading across borders from Mozambique. As part of this support, in April 2017, SPEED+ held a Business Breakfast to discuss trade facilitation. The event was attended by senior staff from government, the private sector, and international partners.