The administrative costs of establishing a micro, small or medium-sized enterprise with 20,000 meticals of starting capital in Mozambique has increased by 367.5% over the last three years, from 7,835 to 36,629 meticals, according to the Confederation of Economic Associations of Mozambique (CTA) in its latest information bulletin.
The amount includes registering the company name, notarisation of documents, commercial registration and publication of statutes, with eight pages, in the country’s official gazette.
According to the table published in the gazette, the cost of booking a company name increased from 75 meticais in 2015 to 200 meticais in 2018, a rise of 166.7%, the notary recognition of documents increased by 5,150% from 20 to 1,050 meticais, the commercial register increased by 207% from 505 to 1,550 meticals and the publication of the statutes in the official gazette increased by 509% from 5,220 to 3,1811 meticals.
Entitled “Look at the business environment,” the text recalls that in 2015, the document for applying to register a company name was free, and it now costs 100 meticals, “even if a personal printer is used.”
CTA questions the high administrative costs to set up a company, which at an exchange rate of 60.27 meticals, corresponds to US$607.75, is “well above the per capita GDP which, according to the International Monetary Fund, is US$500.”(macauhub)