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Government: “State to Have 20% Allocation for Awarding Contracts for Goods and Services to SMEs”

Government: “State to Have 20% Allocation for Awarding Contracts for Goods and Services to SMEs”

The government has revealed that the state and other public bodies will set aside at least 20 per cent of their budgets for contracting goods, services and works from national Micro, Small and Medium-sized Enterprises (MSMEs).

Quoted by the newspaper Noticias, the Minister of Industry and Commerce, Silvino Moreno, explained that the measure is the result of Parliament’s recent approval of the bill establishing the legal regime applicable to MSMEs.

“This instrument now guarantees that large companies set an annual quota in their budgets for contracting goods and services from MSMEs, and creates the conditions to enhance their role in boosting the economy,” he said.

According to the government official, this group of entities represents 97.1% of the universe of companies operating in Mozambique, with a contribution of 23.4% to the Gross Domestic Product (GDP), and 46.4% of the labour force employed in the informal sector.

“Another innovation in the system is the certification of companies and the provision by companies involved in public-private partnerships in large-scale projects and business concessions of 1% of their budget for social and corporate responsibility,” said the minister.

Silvino Moreno clarified that the Institute for the Promotion of Small and Medium-sized Enterprises (IPEME) will ensure full compliance with the new law.

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