Infrastructures and government stability boost confidence of Mozambican entrepreneurs

7 August 2006

Maputo, Mozambique, 07 Aug – Infrastructures and services as well as government stability are the factors that most influence the confidence of Mozambican entrepreneurs, a study by KPMG consultants indicated Monday.

The Business Environment Index produced periodically by KPMG and based on interviews with businesspeople recorded a slight drop in the last quarter of last year, and stood at 96.43 points (compared to the 1998 base year), versus 97.13 points in the third quarter.

The index reached a seven-year high (108.13 points) in early 2005 but since then has continually fallen.

At the end of last year the most favorable business environment was in the transport, terminals and associated services sector (111.28 points), the only one to rise over the previous quarter, and in trade and services (plus 97.43 points).

Standing out to the contrary were agriculture and fisheries (90.18 points), construction and construction materials (92.41 points) and banking, leasing and insurance (94.83 points).

The three factors most favorably viewed by entrepreneurs were those linked to infrastructures and services (102.18 points), acts of governance and government (101.62 points) and of a legal nature (101.05 points).

At the bottom of the table were factors linked to labour (93.22 points), the macroeconomy (93.34 points) and trade (93.62 points).

Most of the companies surveyed (69 percent) said they expected business to improve this year, mainly due to increased productivity, public investment, domestic demand and political stability, among other factors. (macauhub)