Unfair competition from black market affects business in Mozambique

30 June 2009

Maputo, Mozambique, 30 June – Unfair competition between the black market and the official market is the main obstacle to the development of business activities in Mozambique, according to a report from the World Bank published Monday in Maputo.

The study, which was presented by José Reis, a World Bank official, said that competition driven by the black market is more significant than other obstacles to doing business, such as access to finance and infrastructures, issues which are normally at the top of the list of the main impediments to economic activity in Africa.

“Our interpretation of this result is that black market competition is, partly, one of the challenges for the regulatory framework of economic activities and teh quality fo governance in Mozambique,” Reis said.

Reacting to the results of the report, the representative of the Confederation of Economic Associations (CTA), Kekobad Patel said that publishing the report was a turning point in the activities of the World Bank in Mozambique.

“It is the first time that the World Bank has published a study about aspects of the micro-economy. Issues that are merely a business matter were not focused on by the bank, unlike what has happened with this report,” he said.

Patel added that for over 10 years the private sector had been discussing with the government ways of overcoming problems similar to those identified by the World Bank, “except that the speed at which reforms are implemented in Mozambique means that it is ranked among the last places in international competition rankings.” (macauhub)