The Confederation of Economic Associations of Mozambique (CTA) argued, on Wednesday, July 1, the need to accelerate structural reforms to improve the country’s business environment, warning that excessive bureaucracy, fiscal unpredictability, a shortage of foreign currency, and delays in government payments continue to undermine private investment and the economy’s competitiveness.
These concerns were raised by CTA President Álvaro Massingue at the opening of the 12th Business Environment Monitoring Council, held in Maputo and chaired by Prime Minister Maria Benvinda Levi.
On that occasion, Massingue acknowledged the progress made by the government in implementing economic reforms, highlighting the modernization of the legal frameworks for the mining and oil sectors, the approval of the legal framework regarding local content, and efforts toward fiscal consolidation. However, he emphasized that the country’s competitiveness will depend, above all, on the effective implementation of these reforms.
“It is not enough to pass laws. What determines investor confidence is regulatory predictability, the quality of institutions, and the ability to reduce the costs of doing business,” he said.
According to the CTA leader, recent changes to tax regimes continue to result in high compliance costs, greater administrative complexity, and a lack of predictability for companies—factors that, in his view, directly affect investor confidence.
Another point of concern relates to situations in which companies benefiting from tax incentives approved by the Agency for the Promotion of Investment and Exports (APIEX) end up having those benefits challenged by the Tax Authority—a situation that, according to Massingue, undermines legal certainty and requires greater coordination among public institutions.
In the natural resources sector, the CTA welcomed the approval of the new legal framework on local content, viewing it as an opportunity to increase the participation of Mozambican companies in major projects in the oil, gas, and mining sectors. However, it cautioned that the measure’s success will depend on its implementation in practice.
“Local content should translate into more competitive domestic companies, more skilled jobs, greater knowledge transfer, and greater added value for the economy,” he argued.
The business organization also expressed concern about the growing adoption of regulations that, it claims, ultimately create new administrative burdens and costs for companies, without sufficient consultation with the private sector.
According to the CTA, the government should prioritize more inclusive dialogue processes and regulatory impact assessments before approving new economic measures.
Business Leaders Call for Solutions to Foreign Exchange, Fuel, and Government Debt Issues
Among the main obstacles cited by the private sector, the shortage of foreign exchange—which hinders the import of raw materials and equipment—and the high cost of fuel—which puts pressure on production, transportation, and distribution costs—continue to stand out.
In light of this situation, the CTA proposed a review of the fuel pricing structure, including an analysis of margins throughout the entire distribution chain and the adoption of fiscal measures to reduce the price paid by consumers.
Business leaders also reiterated their concerns regarding the impact of delays in government payments to suppliers and pending VAT refunds, calling for a full certification of the debt, the establishment of a transparent schedule for its settlement, and mechanisms to offset companies’ receivables against their tax obligations.
In concluding his remarks, Álvaro Massingue called for a closer partnership between the government and the private sector, arguing that administrative simplification, regulatory stability, and institutional efficiency are essential conditions for attracting investment and accelerating economic growth.
“The current situation demands more than just diagnoses. It demands decisions, implementation, and structural reforms,” he concluded.
Source: Diário Económico
