Maputo, Mozambique, 14 July – The Mozambican business climate improved from October 2008 to March 2009, according to a survey by survey and consulting company KPMG, published Monday in Maputo.
Based on a survey of 938 companies from Mozambique’s 11 provinces, the Business Climate Index survey for 2009 shows crime levels, mainly organised crime, corruption and bureaucracy as factors that have held back business in the Mozambican market.
“Although the Government’s efforts are visible in providing new infrastructures and services, including roads, bridges and telecommunications, a lot has yet to be done to positively influence the expectations of the economic players in these and other areas,” the document said.
However, some changes introduced by the Mozambican government, such as a simplified tax for small-scale taxpayers and a simplified licensing system for issuing business permits, were well-received by business owners.
On a sector level, banking, leasing and insurance, hotels and tourism as well as transport, terminals and related services showed lower levels of confidence due to the effects of the global economic recession, a sharp rise in competition in the market, difficulties in accessing credit, amongst other issues.
However, the improvement in infrastructure, supply of electricity and water are factors that have raised the expectations of Mozambican business owners about the business climate.
The survey was taken between the last quarter of 2008 and the first quarter of this year, and was funded by the Irish embassy and German aid in partnership with the Confederation of Economic Associations of Mozambique and the Mozambique-South Africa Chamber of Commerce and Industry. (macauhub)