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Non-fiscal Incentives Support Growth

Non-fiscal Incentives Support Growth

The government will continue to support the private sector through non-tax incentives, in order to ensure the growth of the economy, which, next year, should be fixed at 2.1 percent.

The guarantee was given yesterday, in Lichinga, by the Prime Minister, Carlos Agostinho do Rosário, stressing that the strategy will consist of continuous investment in the expansion of road infrastructure, water supply, electricity and technical and professional training for young people.

He explained that the improvement in road circulation that occurs in several points at the country level, in particular in the province of Niassa, facilitates the flow of goods from production areas to the consumer market at competitive prices.

The Government’s strategy to expand infrastructures for electricity and water supply for human consumption and irrigation of agricultural fields or watering animals in rural areas aims, cumulatively, to create conditions for the private sector to invest in the implantation of units of local processing, within the scope of strengthening the value chain.

“We are committed to rehabilitating and expanding establishments dedicated to Technical-Vocational Education in different areas of training at the provincial level. This is fundamentally aimed at offering manpower with the skills to make things happen without necessarily having to resort to the foreign market, which is costly for our class of entrepreneurs, ”said Carlos Agostinho do Rosário.

Speaking specifically of Niassa, where there is still a commitment to complete the strategic development triangle of the province, which consists of paving the Cuamba-Marrupa and Unango-Matchedje sections to the border with the Republic of Tanzania, the minister said that if the strategy of mobilization of resources to pay for the undertaking, including tolling, the decision will be to move forward, because the gains will be enormous.

He stressed that the role of the private sector will be crucial for the country’s economy to grow at levels set at 2.1 percent by the end of this year’s fiscal year.

The granting of credits, through specific lines, may not help the private sector to achieve its intentions, but the creation of facilities so that the class can work freely should be a vision to be followed, especially since the global economy in Africa will not growth of more than five percent in the near future.

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The available data indicate that the Mozambican economy closed the second quarter of the current year with a negative percentage of one percent. In the third quarter it registered a slight recovery, which gives prospects for global growth of up to 2.1 percent, based on the performance of the private sector.

The private sector in Niassa, especially in the agricultural area, complained to the PM of the uncertainties about the SUSTENTA initiative, mainly due to the delay in allocating corn seeds and implements for their tractors.

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