Supporting the Policy Environment for Economic Development
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Business Environment

Assessment of the Government of Mozambique’s Proposed Regulations for Public Works Contracts and Procurement of Goods or Services

The Confederation of Mozambican Business Associations (CTA) requested technical assistance to evaluate the Government of Mozambique’s proposed procurement policy: Regulations for Public Works Contracts and Procurement of Goods or Services.

 

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Tax Reform and the Business Environment in Mozambique: A Review of Private-Sector Concerns (Bolnick, 2004)

The Mozambique government has been pursuing a comprehensive tax reform program to modernize and strengthen the tax system. Yet many business leaders express deep concern about adverse effects of the reforms on private sector development. This paper examines the tax system in light of these concerns, with a focus on the income tax and the value added tax.

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A national survey of Mozambique’s business environment was undertaken between June 8 and August 27, 2004. The survey covered 99 companies in 7 of the country’s 10 provinces—19 in the northern region, 13 in the center, and 67 in the south. Seventeen of the companies in the south were multiregional.

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Regulatory barriers, pervasive rent-seeking behavior, and other impediments to trade threaten the competitiveness of Mozambique’s economy. The reports below examine how competition policy could be used to promote private sector growth in Mozambique.

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The USAID TIP Project, together with funding from the Millennium Challenge Corporation (MCC), worked with the Mozambican Statistics Agency (INE) and the Ministry of Planning and Development to undertake in-depth surveys that helped contribute to the strengthening of aggregate macroeconomic statistics.

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In April 2007, a team from the World Bank in Washington, DC visited Mozambique to share information on the methodology used in arriving to the times reported in Doing Business 2007 and to assist in the development of a work plan to help reduce import and export times in Mozambiuqe. Presentations were held at USAID and at the Polana. Presentations are below.

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An adequate and effective industrial property system is essential for economic development. Industrial property rights allow entrepreneurs to create wealth and improve profitability, by providing a legal means to protect reputation and capture some of the value of their creations. Industrial property rights also provide a vehicle for technology transfer. Economic studies show that a country’s protection of industrial property is important to its ability to compete for foreign investment and the wealth, jobs, and technology transfer associates with those investments.

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The Confederation of Mozambican Business Associations (CTA) has requested a consultancy to help produce a study assessing both the cost and quality of electricity supply for Mozambican industry, including local distribution to end users. This assessment will also compare the cost and supply quality conditions for Mozambique with other Southern African countries especially those within SADC. CTA wishes to use the results of this study to promote government policies and investments that can result in lower electricity costs thereby improving the competitiveness of Mozambican industries.

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