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CASP 2025: Government Advocates Reforms to Unlock the Potential of SMEs

CASP 2025: Government Advocates Reforms to Unlock the Potential of SMEs

The Government defended this Thursday (13), in Maputo, the urgent need to remove structural and institutional barriers that continue to limit the growth of Small and Medium Enterprises (SMEs), stressing the importance of reforms that ensure a more favorable, predictable, and inclusive economic environment, according to Lusa.

The position was presented by Cândido Langa, Director of the Directorate for Private Sector Support (DASP) at the Ministry of Economy, during the 20th Annual Private Sector Conference (CASP 2025), which has been taking place since Wednesday in the capital under the theme “Reform to Compete: Pathways for Economic Relaunch.”

According to the official, “the reflections shared here have highlighted the urgency of confronting and removing the structural and institutional barriers that still limit the growth of SMEs—reforming to unlock productive potential, which means simplifying processes, ensuring legal certainty, and promoting policies suited to the realities of our entrepreneurs.”

The DASP Director recalled that Micro, Small, and Medium Enterprises (MSMEs) represent one of the main engines of national development, as they are responsible for generating jobs, driving innovation, and energizing local economies. However, he stressed that they can only reach their full potential if adequate conditions for sustained growth are created.

At the same event, Bruno Comini, president of the Kuvanga project — a cooperative for agro-processing — called for tax incentives to strengthen national cooperativism, proposing a five-year tax exemption for processing cooperatives as a measure to help them establish themselves in the market. He also suggested reducing the Corporate Income Tax (IRPC) rate from 32% to 10% for cooperatives and implementing discounted energy tariffs, arguing that current costs are prohibitive for these entities. “It is also necessary to simplify accounting processes, bearing in mind that many cooperatives involve disadvantaged populations, including illiterate people,” he warned.

Bruno Comini also called for a review of cooperativism legislation and advocated for the effective inclusion of young people and women in the national economic system, arguing that their integration could create a virtuous circle of opportunity, entrepreneurship, and social cohesion.

The 2025 edition of CASP brings together more than 2,000 participants, including representatives from the Government, private sector, development partners, and civil society. It features 40 speakers and 80 exhibitors at the Mozambique Home Expo, a parallel showcase dedicated to promoting access to housing. The agenda also includes discussions on projects valued at 1.5 billion USD (95.6 billion meticais), with a focus on productive sectors.

Source: Diário Económico

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