Supporting the Policy Environment for Economic Development
SPEED+

Previous Publications

Much of SPEEDs work in the context of the business environment and Mozambique’s competitiveness reveals that the perpetuating electricity quantity and quality deficit could emerge as the biggest single constraint to economic development. The private sector including leading industries have openly complained that most of their development and expansion plans have stalled due to the lack of reliable power.

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The Mozambican Labor Law provides for the concept of Tolerância de Ponto (TdP). These are ad hoc public holidays which must be declared by the Minister of Labor and which are to be declared and communicated with a minimum warning period of 48 hours. As a matter of practice the Minister consults with the tripartite labor committee (CCT) for approval when declaring TdP. However since the body is tripartite unions and government are able to out-vote the private sector meaning that TdP are generally declared even if the private sector opposes them. On the other hand, even when the business community is consulted through the CTA representative at CCT, the time given to respond is rarely sufficient to permit a wider consultation among the private sector.

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The Government is proposing a 20% duty (ad valorem) on the export of pigeon peas for a period of 5 years. The arguments put forward by the Government in its proposal are: (i) the need to protect an emerging/infant pigeon pea processing industry, and (ii) the opportunity to generate additional government revenue, not only through the collection of the export duty but also by reducing and/or eliminating the potential occurrence of under-invoicing pigeon pea exports.

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It is widely agreed that agricultural growth is central to broad, inclusive economic growth and poverty reduction in low-income countries.  At the same time, these countries do not want just to produce, consume, and export primary commodities; they want to increase value-added off the farm to create employment and drive broader growth beyond the farm.  The challenge is how to do this in ways that are sustainable and that benefit farmers, agribusinesses, and consumers at the same time.

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Economic growth in Mozambique makes the country more attractive for foreign investment, which is necessary for the development of the national economy. The employment of foreigners in Mozambique, as well as the applicable procedures for doing so, are duly regulated by various national legal instruments.

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The growth of global trade and the growing security threats to the international movement of goods have forced the customs authorities to change their focus from their traditional task of collecting customs duties to guaranteeing the facilitation of international trade and strengthening security. Recognizing this evolution, the World Customs Organization (WCO) has prepared a Framework of Standards to Secure and Facilitate Global Trade (SAFE). Several standards are included that can assist the customs authorities in meeting these new challenges. The development and implementation of an AEO (Authorized Economic Operator) program is an essential part of SAFE.

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The African Growth and Opportunity Act (AGOA) is a U.S. trade act that provides duty-free import to goods produced in qualifying Sub-Saharan African (SSA) countries. AGOA came into force in 2000 and was most recently extended to 2025 through the AGOA Extension & Enhancement Act (AEEA). Mozambique has been eligible for AGOA since 2000. One of the additions to AGOA through the AEEA is language in the legislation that states countries should produce “AGOA Utilization Strategies” to take advantage of the benefits. Accordingly, this AGOA Utilization Strategy is intended to identify strategic sectors and goods for exports to the U.S. under AGOA by Mozambique, to provide guidance on increasing the awareness and expertise of AGOA among Mozambique’s relevant public and private stakeholders and to elaborate a set of strategic actions that, if implemented, could help Mozambique to better utilize the AGOA.

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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 legislation aims at using fixation of maximum profit margins of wholesalers and retailers as the instrument to mitigate these effects. This measure assumes that profit margins are excessive and can be reduced with instruments of direct intervention.

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a. Business Environment Annual Strategy – PAMAN

SPEED, in collaboration with the Ministry of Industry and Commerce (MIC), Confederation of Business Associations (CTA) and International Finance Corporation (IFC), drafted the Business Environment Action Plan (PAMAN) in December 2011. It comprises a list of the key policy reforms to be implemented in 2012 by the GOM. The plan was submitted to and approved by the Council of Ministers in February 2012.

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