Supporting the Policy Environment for Economic Development
SPEED+

Previous Publications

The adoption and successful implementation of policy and regulations require broad support from all stakeholders. The engagement and participation of all interested parties increase the likelihood of understanding and implementation of policies and reforms.  The right to ensure public participation in the rule making process including public policy issues and process is entrenched in Mozambican legal framework. However, public participation in public policy formulation has been done on an ad-hoc basis and there is no legal framework which obliges to call for public participation in policy formulation. In 2012 the Confederação das Associações Económicas de Moçambique  (CTA ), the Associacao de Comercio e Industia  (ACIS)  in collaboration with the Support Program for Economic and Enterprise Development ( USAID / SPEED ) engaged the services of Sal & Caldeira Advogados LDA to develop the  Draft Law on Public Participation in the Legislative Process Mozambique. This initiative will embark on a public consultation process led by CTA and other implementation partners, we invite your comments.

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Conservation is an important component of both agriculture and tourism and is essential for competitiveness. Preservation of the environment is crucial if we are to pass on our resource endowment to generations to come. SPEED is working with BIOFUND and MICOA’s CITES department to analyse and develop legislation and information which will support conservation and sustainable natural resource management.

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The position indicator of Mozambique in starting a business has been suffering a decline year after year. According to the Doing Business ranking 2013 (DB13), opening a business in Mozambique requires 9 procedures, takes 13 days and costs 19.7% of income per capita. Mozambique is in  the 96th position in the ranking out of 185 economies on the ease of starting a business and launch activities. In order to improve the country’s position in the DB ranking and to improve the business environment in Mozambique, SPEED commisioned work to  Sal & Caldeira, to assess processes and procedures on how to to streamline business registration.  Sal & Caldeira’s report explains how to  streamline starting business in Mozambique and proposes to  reduce the number of days to start a business from nine to three!

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The Support Program for Economic and Enterprise Development (SPEED) (hereinafter, the “project”), is required to report on impact of project activities to USAID. Under USAID’s results framework, SPEED is required to report on SPEED-support activities that result in: (1) a cost savings to the private sector and (2) jobs created. This paper sets out four draft frameworks and logic chains for estimating the monetary benefits for the following selected business environment reforms supported by the project

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For the past twenty years, Mozambique has been going through series of economic and socio-political transformations, gaining momentum now, with the boom in the extractive resources industry. As the natural resource sector assumes the driving force of economic growth, the Mozambican state’s engagement in business appears to be changing. While on one hand, the number of state owned enterprises (SOE) managed by IGEPE (Institute for the Management of State Holdings) is being reduced, the state is expanding its engagement in business activities in new areas, notably in the oil, mining and gas sectors. Within this context, there is a need for greater clarity and a public discussion on the role of the state in shaping and engaging in the business environment. Against this background, the private sector umbrella organization, CTA in collaboration with the USAID Support Program for Economic and Enterprise Development (SPEED), have commissioned this study to contribute to the discourse and generate a basis from which further understanding can follow on the state’s engagement in business.

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This Note makes a brief analysis of the “Medidas” (Measures) proposed by government. The “Medidas” aim at offsetting price increases that will result from elimination of domestic subsidies to diesel and wheat/bread in parallel with expected increases of world prices for basic foodstuff. The Note commends government action to mitigate the impacts of price increases on the most poor. The “Medidas” include two instruments: (i) the “Cesta Básica”, a safety net instrument envisaging to fix the cost of a basic food-basket at 840 MT (estimated cost of 6 basic food products in June 2011); and (ii) a subsidy on transport costing for workers, students and elderly.

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The government’s decision to mitigate adverse effects of subsidy elimination and world price of foodstuff increases on the most poor families is well justified. The proposed instruments are: the “Cesta Básica” (food-basket) subsidy, and a subsidy to transports.

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The CTA - Confederation of Business Associations of Mozambique, which works toward improving business environment in Mozambique on behalf of the private sector, identifies the tourism sector as a strategic and priority area for development. Maintaining a climate conducive to both foreign and domestic investments in the tourism sector is a priority for the organization not only because of the sector’s potential to generate foreign exchange, but more importantly, because of its potential to generate employment, increase consumption of local resources, contribute to alleviate poverty in Mozambique.

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