Mozambican employers criticise reforms of business environment and transaction costs

26 October 2010

Maputo, Mozambique, 26 Oct – Mozambique’s employers criticised on Monday in Maputo the pace of government reforms meant to improve the business environment and also contested the “high transaction costs” of goods and services.

“The pace of reforms affecting the country’s business environment does not meet the private sector’s expectations,” said Orlando da Conceiçao, director of the Federation of Mozambican Economic Associations (Cta), when announcing that the 10th Annual Private Sector Conference would be held this coming 23 November.

“The private sector had expectations when the government launched the administrative and bureaucratic reforms to achieve a better business environment, but those expectations have not been met,” da Conceiçao said.

He explained that the government had failed to create conditions that lower the cost of doing business in Mozambique. There are studies indicating that the country is the most expensive in southern Africa for potential investors.

“Transaction costs remain high and discourage investment and business,” da Conceiçao stressed, indicating that obstacle as one of the concerns the organisation will raise in talks with the government.

He acknowledged that despite the slow pace of reducing red tape in the state bureaucracy, the reforms have generated some progress, such as smoother customs handling and fiscal administration.

The director of the Private Sector Support Office of the Ministry of Trade and Industry, Claire Zimba, said the government hoped the conference would identify ways to involve the private sector in increasing production and productivity in the country, bearing in mind the importance of those two factors in economic development and the fight against poverty.

More than 500 business representatives are expected to attend the meeting, whose theme topic is “How to Efficiently Produce”. (macauhub)