Mozambique and the United States of America (US) announced on Tuesday, March 3, the creation of a bilateral working group with the aim of identifying challenges and proposing solutions to improve the business environment in the country, promoting US trade and investment.
The information is contained in a statement released by the US Embassy in Maputo, which states that the new mechanism “will serve as a regular forum to identify challenges to the business environment and develop practical solutions to overcome them, with a view to promoting US trade and investment in Mozambique.”
According to the note, the objective is to foster “a more transparent, predictable, and business-friendly environment for the benefit of both Mozambican and American companies.”
The working group will be co-led by the US Embassy and Mozambican government partners, including the Ministries of Foreign Affairs, Finance, Mineral Resources and Energy, Economy, Planning and Development, Transport and Logistics, as well as the Tax Authority.
“The US and Mozambique look forward to regular meetings of the working group and the advancement of concrete results that support inclusive economic growth, strengthen trade ties, and consolidate the long-standing partnership between the two countries,” the statement added.
Business environment at the center of concerns
The Deputy Assistant Secretary of State for African Affairs at the US Department of State, Sarah Troutman, had already announced in an interview with the Lusa news agency on February 27 that the two governments had agreed to create this group to improve the business environment and attract more US investment.
“We have agreed to set up a bilateral trade working group with the Mozambican government to discuss more specifically how they can improve the business environment and attract more investment,” she said on the sidelines of her working visit to Maputo.
“It will be an excellent place to raise some of the issues of a favorable environment that we face,” she added, stressing that the US urges the Mozambican government to treat US companies fairly.
According to Troutman, during the visit, concerns were heard from the Mozambique-US Chamber of Commerce and several US companies operating in the country, issues that Washington says it takes “very seriously.”
“The best way to attract more companies is to take care of those already working in the country,” he argued, adding that Mozambique is seen as “a capable trading partner and a promising location for US investment.”
The minister also mentioned that, in addition to energy and mining projects, new areas of potential economic cooperation were discussed.
Agreements signed in Maputo
During the official visit, a $1.8 billion grant agreement was signed between the United States Trade and Development Agency and Monte Muambe Mining (MMM) to analyze the feasibility of rare earth extraction in Tete province.
A memorandum of understanding was also signed with the Mozambican Ministry of Transport and Logistics, aimed at strengthening infrastructure, namely through the possible supply and installation of 112 metal bridges in various regions of the country, involving the US company Acrow Bridge.
The Executive has reiterated the need to improve the business environment in order to diversify the economy and attract foreign direct investment, in a context in which the country seeks to consolidate its economic recovery and strengthen its international strategic partnerships.
