Maputo, 02 Nov (AIM) – Mozambican Finance Minister Carla Louveira believes that sustainability of public finances and the vitality of the private sector are complementary and interdependent dimensions of the country’s development.
“Mozambique recorded growth of 1.7 percent in the second quarter of 2026, accompanied by a reduction in inflation to around six percent between August and September. These indicators reflect signs of a gradual recovery in economic activity, despite the challenges that continue to constrain the resumption of productive capacity”, the minister said.
Speaking at the sixth edition of the Business Breakfast, which was organised by the country’s Confederation of Business Associations (CTA), which brought together government representatives, businesspeople and financial institutions to discuss the challenges of economic policy and its role in stimulating economic activity, Louveira said that strengthened partnership between government and CTA is crucial.
In the area of public finances, the minister reported that revenues from oil and natural gas projects reached 334.35 million US dollars.
She also highlighted the implementation of the Fiscal Consolidation Plan, which aims to strengthen “revenue mobilisation, rationalise public expenditure and ensure greater transparency and efficiency in the use of State resources.”
Regarding ongoing measures to strengthen the private sector, the minister highlighted the structuring of the Development Bank of Mozambique, the establishment of the State Procurement Agency (CAE, IP), the approval of tax regulations and the implementation of the Strategy for Payments to Suppliers.
The minister also highlighted the preparation of a Value Added Tax (VAT) Refund Strategy, an initiative intended to improve companies’ liquidity, provide greater financial predictability for economic operators and contribute to stimulating business activity.
These interventions fall within the Public Finance Management Strategy 2026–2035, which establishes an agenda for modernising the State’s financial management, encompassing, among other priorities, digital transformation, the integration of the climate component and human capital development.
For his part, CTA chairperson Álvaro Massingue highlighted the financing costs, tax pressure, and delays in State payments to suppliers and difficulties in accessing credit, particularly for micro, small and medium-sized enterprises (MSMEs), which account for more than 97 percent of the country’s business fabric, as main constraints to private sector.
He said that it is crucial to improve the predictability of public expenditure execution and establish transparent mechanisms for the validation and settlement of State debts to suppliers, taking into account the impact of payment delays on companies’ cash flow, the maintenance of jobs and the continuity of productive activity.
CTA also called for the need for structural reform of the tax system, aligned with regional and international best practices, to simplify tax obligations, reduce compliance costs and create more favourable conditions for the formalization, productivity and competitiveness of businesses.
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