Maputo, 14 May (AIM) – The Mozambican government intends to reintroduce, as of next year, an Action Plan for the Economy and Business Environment in order to strengthen the Package of Economic Acceleration Measured (PAE), which was implemented in 2022 to restore economic growth that had stagnated as a result of the Covid-19 pandemic and the suspension of direct support to the State Budget from donors in the wake of the scandal of the “hidden debts”.
PAE includes the reduction of the standard rate of Value Added Tax (VAT) from 17 to 16 per cent, exempting imports of inputs for agriculture and electrification from VAT, simplifying the procedures for repatriating capital, and creating and implementing the Mozambique Sovereign Wealth Fund.
According to the director of Private Sector Support at the Ministry of Industry and Trade, José Júnior, who was speaking to reporters on Monday, in Maputo, at a joint press conference between his Ministry and the Confederation of Mozambican Business Associations (CTA), there is a legal instrument that needs to be restored in order to boost the business environment, namely the Action Plan for the Economy and Business Environment which was in force from 2019 to 2021.
“We have a legal instrument that has been discontinued, which is the Action Plan for the Economy and Business Environment, which was in force from 2019 to 2021 and which we will probably continue to implement in 2025”, he said.
He guaranteed that the Mozambican authorities will do everything in their power to maintain a favourable economic climate for business in the country.
“There will be no legal vacuum, reforms will continue to take place and we will continue to work. We are here to keep working, the actions are continuing,” he said.
Junior also said that the forthcoming annual private sector conference (CASP) would be presenting a tool to help with problems related to public procurement. “At the same time, there will be the launch of a practical guide to combating collusion in public procurement,” he said.
He also said that at CASP, six Mozambican companies will receive quality certificates, which will allow them to take their brand abroad.
“Six Mozambican companies will be awarded quality certification, which means that they are companies that are approved to export their products and services. They are now eligible for Southern Africa Development Community (SADC) quality awards and for Mozambique. This is very good as it helps to encourage other Mozambican companies to start certifying their products and services,” he said.
(AIM)
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