Introduction Investors Top 25 Investment Climate Tourism Sector Legislation Process Guides

Investment Climate Background

Material providing background to the investment climate in Mozambique, analysis and reports on, for example, land, taxation, financial services and infrastructure etc.

General
Document Author Date Size Document Type Contents
Moz Administrative Barriers to investment FIAS (World Bank Group), IFC (World Bank Group) 1996 448kb Report This fairly old but detailed report has value in presenting the procedures and documents (and the legal framework behind it) needed to apply and obtain licenses and permits in Mozambique and highlights the subsequent transactions costs to businesses. An important finding is that major changes such as decentralization of decision making can be done without modifications to existing laws.
Investment Guide to Moz UNCTAD 2001 1.57mb Report Excellent report, although old, providing a brief introduction to Mozambique, moving on to the investment environment, areas of opportunity, the regulatory framework and private sector perceptions. There is a good level of detail on the labour law, tax and corporate tax, tax reductions and relief, as well as some procedural detail on investment ‘entry and exit’.
Moz Continuing to Remove Administrative Barriers to Investment FIAS (World Bank Group), USAID, IBRD, IFC (World Bank Group) 2001 776kb Report Update on reforms and remaining challenges since 1996. According to the report, specific remaining concerns include access to land, employing expatriates, domestic labour, the import process, tourism licensing and company incorporation. The report then looks ahead to the next steps and makes recommendations.
Mozambique Pilot Investment Climate Assessment WB/ IFC in partnership with CTA and CPI 2003 684kb Report Survey reveals access to finance, the regulatory environment and infrastructure as the principal constraints. Within the regulatory environment, specific attention is draw to the legal system, corruption and taxes. The report discusses the policy environment, and the investment climate from both the international and sub-national perspective before making policy recommendations. Provides good background information on most business environment issues and some useful data in the appendices (although is now fairly dated).
Plano De Desenvolvimento Do Sector Privado Exec Sum CTA 2004 88kb Plan for Private Sector development (Portuguese) Suggestions/recommendations for development include, liberalising, integrating and prioritising. The private sector requires support in terms of infrastructure development, access to capital, and business environment reform.
Removing Obstacles to Economic Growth (Summary) Integrated Framework (IMF WB, UNDP etc) 2004 544kb SUMMARY Diagnostic Trade Integration Study (DTIS) Diagnostic study identifying constraints on trade integration. See ‘Removing Obstacles of Economic Growth’ for full report.
Diagnostic Trade Study: Removing Obstacles of Economic Growth in Moz USAID 2004 2.26mb Diagnostic Trade Integration Study (DTIS) The study focuses on international trade environment in Mozambique (trade facilitation, access to export markets etc). Good chapter (Dismantling Administrative, Regulatory, and Commercial Legal Barriers to Expanded Trade and Investment) outlining general impediments within the business-enabling environment (such as labour and land law), and a detailed overview of the trade and investment policy, processes and institutions. The study provides good detail on the trade-related aspects of the business environment (e.g. customs, transport, logistics, tariff structure for imports), and also a chapter on tourism opportunities, recommendations and existing donors.
MIC Manual do Investidor Ministry of Industry and Commerce (MIC) 2004 1.04mb Investment Manual (Portuguese) Comprehensive (if a little outdated) investment guide to Mozambique. It goes through the economy, political system, business environment, operating costs, legislation on investment and development projects.
AGOA Competitiveness Report Office of US Trade Representation 2005 612kb Report 5/156 pages directly concern Mozambique. The report documents Mozambique’s principal exports and outlines general challenges to export growth, the first challenge being the business environment. The report specifically notes the complexity and cost associated with complying with regulations, and the land policy.
Mozambique Country Economic Memorandum World Bank 2005 14.3mb Report This Memorandum examines the growth-poverty linkage, using a wide variety of data sources, including the recently completed national household survey (2002/3). It seeks to understand the sources of growth in the recent past, to evaluate the prospects for growth in the next decade, to examine the likely implications for poverty, and to outline the policies that will be needed to achieve further growth and poverty reduction.
Snapshot Moz - Enterprise Benchmarking MIGA (World Bank Group) 2005 1.17mb Report The EBP uses a location benchmarking approach to better understand Mozambique’s competitiveness in attracting FDI. The report provides a summary of the positives and negatives found in Mozambique in terms of FDI attractiveness, providing considerable detail of different industries’ views (including tourism) to aspects of the business climate under the ‘Site selection factor Weighing Matrix’.
Snapshot Mozambique - Executive Summary MIGA (World Bank Group) 2005 272kb Executive Summary Executive Summary of Snapshot Mozambique
FIAS Investment Review FIAS (World Bank Group) 2006 152kb Workshop Review The main focus of the discussion was on business start-up, labour, and cross-border trading issues as well as general issues on the pace and scope of the current investment climate reforms. The private sector’s priorities for reform include ‘corruption imbedded within current regulatory processes pertaining to licenses, tax, trade and customs.’
2006 Country Commercial Guide Doing Business, Chapter 6: Inv Climate US Embassy, Maputo 2006 636kb Guide to investors Designed to inform potential investors, Chapter 6 ‘The Investment Climate’ provides good factual detail on critical aspects of the investment including conversion and transfer policies, expropriation, compensation, dispute settlement, performance requirements and incentives, right to private ownership, property rights, transparency of regulatory system, efficient capital markets and portfolio investment, bilateral investment agreements, and labour regulations.
PARPA Action Plan GoM 2006 388kb Poverty reduction strategy action plan Section A describes ‘Fundamental Areas of Action’ such as macroeconomic policy, health, education etc. Section B expands on other important issues such as the employment and business environment. Recommended actions in this section include updating the labour law and commercial code (both of which have been done) and strengthening institutions. Sector specific actions for tourism include strengthening the sector’s policy, professional training and promotion.
Moz Business Climate Survey KPMG 2006 612kb Report Report details results from series of surveys on various aspects of general business climate from corruption, to bureaucracy to co-operation with public sector.
Breaking the Rules that bind DAI for USAID 2007 1.0mb Report A series of chapters by varied authors on the regulatory environment in general, covering topics such as e-governance, competitiveness partnerships, impact assessments, lessons learned, case studies and the judicial side of regulatory reform.
Moz - The business view Business Leadership SA 2007 436kb Survey report The report examines Mozambique by sector (ports, financial services, tourism etc), before going into the survey methodology and its main findings (broken into categories such as taxes, language, corruption etc) and providing recommendations.
Cost of Doing Business in Moz relative to other SADC countries Presentation Econex 2008 576kb Presentation Presentation of research note of same name.
Review of Investment climate Procedures in Mozambique ComMark Trust for PIAB 2008 464kb Report (english) Report identifying key barriers to investment, and focusing on providing reccommendations - 'zone and agency model'.
Investment Climate Assessment Mozambique 2009 World Bank 2009 2.44mb Report Based on an enterprise survey and building on the Doing Business report – this ICA goes into greater detail on the principal barriers to investment in Mozambique.
Investment Climate Assessment 2009 Exec Summary World Bank 2009 216kb Exec Summary (Portuguese) Based on an enterprise survey and building on the Doing Business report – this ICA goes into greater detail on the principal barriers to investment in Mozambique.
Cost of Doing Business in Moz relative to other SADC countries Econex 2009 128kb Research note This research note provides a snapshot of Mozambique’s relative attractiveness as a destination for investment and doing business. Econex was contracted by the CTA (Mozambique Chamber of Commerce) at the end of 2008 to conduct a review of transaction costs (and associated competitiveness) in the Mozambican economy - specifically the level of these costs relative to other countries in the SADC region and South Africa in particular. It reviewed all possible sources of transaction costs including specifics of telecommunication, utility and transport costs; customs procedures as well as the steps required for investment and the setting up of a business in Mozambique.
Moz Business Forecast Report 2009
Available by purchase only www.businessmonitor.com/ 		Business Monitor International 2009 Q3 - Report Quarterly report on business forecast of Mozambique, focussing on the economic crisis; ‘it’s no picnic, but not a disaster either’. Report goes into the political environment, economic activity, fiscal policy, regional banking outlook, and forecasts for the Mozambican economy to 2018.
Indices
Document Author Date Size Document Type Contents
Index of Economic Freedom Moz The Heritage Foundation and the Wall Street Journal 2007 104kb Global Benchmarking Index of economic freedom This index ranks 157 countries in order of how ‘free’ their economies are. Mozambique ranks 101/157 and 14/40 in the sub-Saharan region. The Index report concludes that Mozambique ranks highly in fiscal freedom (85.5% free), freedom from government (86.2%), investment freedom 50%), and monetary freedom (75.9%). It is hampered by fairly high inflation, labour freedom, property rights, financial and business freedom.
Moz Travel and Tourism Competitiveness Index World Economic Forum 2007 112kb Mozambique’s competitiveness report Ranked 119/124. Includes a variety of business environment indicators. Is a useful tool to broadly compare Mozambique’s tourism industry to the region, but only gives broad indications of the positives and negatives of the business environment as it affects tourism.
Doing Business Report World Bank Group 2008 748kb Global Benchmarking Index of business environment Describes specific elements of the business environment. Countries are ranked according to the ease of doing business. Mozambique is ranked at 134/178 economies. Singapore is the top ranked economy in the ease of doing business. Mozambique ranks highest (33/178) on the indicator 'protecting investors' and lowest (162/178) for 'employing workers'.
Business Confidence Index 2008 KPMG 2008 1.64mb Report (English and Portuguese) Report detailing the macroeconomic context for the index, the main economic actors, and then the index itself, based on a set of indicators, followed by a statement on ‘overall perception of the business climate’.
Doing Business Report World Bank Group 2009 528kb Global Benchmarking Index of business environment Describes specific elements of the business environment. Countries are ranked according to the ease of doing business. Mozambique is ranked at 140/175 - highlighting not only general bottlenecks in the business climate, but more usefully, weaknesses in specific processes – e.g Registering property. The report lists 8 procedures to register property, totally 42 days.
Business Confidence Index 2009 KPMG 2009 896kb Report (English and Portuguese) Report detailing the macroeconomic context for the index, the main economic actors, and then the index itself, based on a set of indicators, followed by a statement on ‘overall perception of the business climate’.
Travel and Tourism Competitiveness Report 2009 World Economic Forum 2009 2.85mb Report Annual report benchmarking set of standard travel and tourism competitiveness indicators in approx. 130 countries across the globe.
International Property Rights Index - Portuguese Property Rights Alliance 2010 464kb Report Index ranking different countries on the competiveness of their property rights
International Property Rights Index - English Property Rights Alliance 2010 3.98mb Report Index ranking different countries on the competiveness of their property rights
Business Confidence Index 2009 KPMG 2010 980kb Report (English and Portuguese) Report detailing the macroeconomic context for the index, the main economic actors, and then the index itself, based on a set of indicators, followed by a statement on ‘overall perception of the business climate’.
Financial Services
Document Author Date Size Document Type Contents
Financial Sector Constraints to Moz private sector USAID 2007 580kb Report This paper examines key financing constraints to development of the private sector, focussing primarily on the high cost and low availability of credit. The paper also includes a detailed review of the legal and judicial foundations for financial sector development and concludes with over 60 recommendations for overcoming financial constraints.
Research Economics Mozambique Blueprint Standard Bank 2008 168kb Bulletin This bulletin provides news and projections on the political climate, economic growth and structure, inflation, interest and exchange rates, and government finance. sectors.
Licensing
Document Author Date Size Document Type Contents
One Stop Shops UNIDO 2005 364kb Report This UNIDO report covers the background and function of the One-stop shops in Mozambique, the vision of the private sector, the challenges faced, formalising the system, structure, budget, organogram, location, personnel, monitoring and evaluation, the Case of Tourism, and recommendations.
Analysis of One-Stop Shops Processes in Sofala GoM and GTZ 2006 600kb Report Introduction to the Program, objectives and results of data gathered during the mission to Sofala in 2006, methodology, followed by an analysis of the current situation on One-Stop Shops and issues identified by the technical assistants.
Organic Statute on the One-Stop Shops GoM 2007 160kb Organic Statute and GoM Decree on 1-Stop Shops The Organic Statute is a legal document setting out the objectives, responsibilities, structure, services and management structure of the One-Stop Shops for licensing in Mozambique.
Improving Business Licensing and one-stop shops in Moz USAID 2007 1.21mb Report Analysis and recommendations on simplifying Mozambique’s licensing regime, including progress of reform and analysis of the current situation, analysis and next steps for ICT in relation to licensing, investigation into one-stop shops (BAUs) and summary recommendations.
Intellectual Property
Document Author Date Size Document Type Contents
Intellectual Property Milestones GoM - Ministry of Industry and Commerce 2007 108kb List of milestones (Portuguese) List of milestones/ progress achieved in establishing Intellectual Property rights
Land
Document Author Date Size Document Type Contents
Land Tenure Services Chemonics for USAID 2006 5.39mb Report Excellent detail on land tenure in Mozambique; outlining the current policy, administration, approaches and processes. It moves on to describe the key problems and constraints (regulatory, implementation, institutional), before proposing recommendations and discussing the issues of policy monitoring and capacity-building in Land Administration. Excellent level of detail contained in the annex.
Land Use rights for Commercial Activities in Mozambique USAID 2007 412kb Report The report goes through the history and context of land-use, the land-law and the practicalities of accessing land, securing tenure, transferring and mortgaging DUATs, followed by lessons learned for Mozambique through international experience.
Tourism and Land FIAS (World Bank Group), Iain Christie 2007 340kb Discussion Note Note goes through details of Land Policy (land registration and rights, transactions, land use planning and institutions) before going into land as it relates to tourism. This is a fairly academic study with a good level of annexed detail, focussed on Africa as a whole.
Special Economic Zones: Performance lessons learned FIAS (World Bank Group) 2008 2.62mb Report The report goes through zone definition and development trends examining 30 years of experience in zones, reviewing development patterns and economic impacts of zones worldwide. It explores zone growth and key characteristics, economic performance and impacts, before going into lessons learned and implications for zone development.
Tax
Document Author Date Size Document Type Contents
Tax Reform and the Moz Business Environment Nathan Associates for USAID (Bolnick) 2004 468kb Report The report examines tax reform in Mozambique and the principle concerns that remain from the private sector. It gives an outline of developing country taxation principles before describing the main elements of the tax system in Mozambique (e.g. VAT, corporate and individual income tax). The report then describes the main private sector concerns e.g. complexity, high rates, and narrow base, and provides reccommendations.
Selected Issues and Statistical Appendices IMF 2005 624kb Report The report finds that Mozambique currently has a comprehensive tax system broadly in line with international best practice, and that Mozambique’s tax ratio (which is low compared to other sub-Saharan countries) has stagnated in recent years. The report compares the pre and post reform tax systems, describing in detail the reform of customs duties, domestic taxes and tax incentives, before describing tax administration reforms and making recommendations on the remaining weaknesses.
Post-Reform Evaluation of the Tax System IMF 2006 736kb Report Since 1997 and the beginning of the customs reform, reform of the tax and tax administration reform was initiated. The rise in revenues however has been smaller than expected, and the tax ratio has been falling. The report examines the reasons why and makes recommendations on policy, benefits and administration.
Study on Impact of Taxes, Customs, Licenses on Inv Climate Executive Summary FIAS (World Bank Group) 2006 212kb Exec Summary Exec Summary on full report 'Study on Impact of Taxes, Customs, Licenses on Investment Climate'
Study on the Impact of Taxes, Customs, Licenses on investment climate FIAS (World Bank Group) 2006 1.14mb Study This report provides background into the business climate in Mozambique and a summary of current tax policy and administration. The report finds that under the ‘standard’ tax regime, Mozambique investors face a relatively high tax burden but when the Fiscal Benefits Code is applied, Mozambique’s tax regime is competitive. Tax administration, however, considerably slows down the process. The report then examine the effective tax burden both economy wide, and by sector (including tourism). It provides an excellent level of detail on all taxes and incentives that apply to the tourism sector including corporate tax (at 32%), customs and excise, airport tax, departure tax, VAT etc.
Tax Incentives to Investment in Mozambique: Perspectives and Opportunities One Vision 2010 200kb Newsflash Summary of tax benefits, categories, assumptions and procedures
A Tourism Levy in Inhambane, Mozambique Genesis Analytics 2010 720kb Report Investigating the potential revenue that could be raised from a levy on tourism in Inhambane
Institutional
Document Author Date Size Document Type Contents
Organigramme du Governement GoM 2007 88kb Organigram of governmental ministries and departments The diagram shows all ministries, departments and state offices from the presidential to the district level, including details of the personalities responsible.
Organogram MIC GoM   28kb Organogram Structural diagram showing the internal relationships between the different departments within the Ministry of Industry and Commerce
Organogram Dept of Commerce GoM   20kb Organogram Structural diagram showing the internal relationships between the different departments within the Department of Commerce within Ministry of Industry and Commerce
Organogram Dept of Industry GoM   36kb Organogram Structural diagram showing the internal relationships between the different departments within the Department of Industry within Ministry of Industry and Commerce
Infrastructure
Document Author Date Size Document Type Contents
Clear Skies over Africa ComMark Trust 2006 2.94mb Report This report shows that if air transport in the South African Development Community (SADC) was liberalised, the entire region would benefit from increased economic growth and employment opportunities. Research shows that a 20% increase in air travel would mean another 500,000 visitors to the SADC region each year. The report uses Mozambique as a case study for policy conflict.
Costs
Document Author Date Size Document Type Contents
Cost of Factors CPI 2009 214kb List of costs associated with operating a business The document shows a list of some of the costs of investing and operating in Mozambique, including water, electricity and telecommunications rates, labour, rent, leasing, use and tenure of land.

 

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Last updated: 27th October 2010