Mozambique is holding steady in the World Bank Ease of Doing Business index, with its overall score on the index having improved.
The government has improved access to credit, reduced the cost of paying corporate taxes, and made it easier to register properties. Other positive changes include reducing the cost and time of registering a business in selected sectors.
A One-Stop Shop (Balcão de Atendimento Único) in Maputo simplifies the licensing of businesses in the nine sectors of agriculture, commerce, industry, civil construction, communications, culture, fishing, services and tourism. Financing of businesses has been made easier through the establishment of a new credit bureau. Cash flow for large commercial clients has been eased by dropping the requirement for the companies to make security deposits.
On the downside the government has made starting a business more difficult by increasing registration and notary fees. And getting connected to the power grid has been made more difficult by requiring authorisation of a connection project by the ministry of energy and by adding a compulsory inspection of the completed external works.
For traders Mozambique made exporting easier by improving infrastructure at the Maputo-Matola port complex, says the report. Mozambique has also reduced the time required to clear goods by introducing administrative improvements at customs.
For those wanting to build warehouses and other business infrastructure, Mozambique has made dealing with construction permits easier by improving internal processes at the department of construction and urbanisation – though it has also increased the fees for building permits and occupancy permits. A number of measures have reduced the risk of doing business for foreign companies.
On the labour side Mozambique has increased the maximum duration of fixedterm contracts and also reduced the notice period applicable in cases of redundancy dismissals.
The new Maputo-Matola bridge is the most visible symbol of Mozambique’s drive to make it easier to do business in the country.
