Moçambique Launches Reforms to Cut Red Tape

By MOZTIMES Maputo (MOZTIMES) – The Mozambican government has approved a package of economic and administrative reforms, intended to cut red tape, expand the digitalisation of State services, and facilitate the creation of small companies, in an attempt to improve the business environment and stimulate youth employment. The measures were approved during the weekly meeting of […]

Moçambique Launches Reforms to Cut Red Tape

By MOZTIMES

Maputo (MOZTIMES) – The Mozambican government has approved a package of economic and administrative reforms, intended to cut red tape, expand the digitalisation of State services, and facilitate the creation of small companies, in an attempt to improve the business environment and stimulate youth employment.

The measures were approved during the weekly meeting of the Council of Ministers. They include new regulations for simplified licensing and prior communication for low-risk economic activities.

According to the government spokesperson and Minister of State Administration, Inocêncio Impissa, the new regime expands automatic licensing to businesses that have no relevant impact on public health or State security. It introduces a further 19 activities eligible for prior communication and a further 49 activities covered by simplified licensing.

“The instrument expands automatic licensing to activities that pose no risk to public health or to State security, adds 19 new activities, and strengthens digitalisation, interoperability, and inspection”, said Impissa.

The reforms are part of the economic agenda favoured by President Daniel Chapo to formalise the economy, expand the tax base and create jobs for young Mozambicans.

“The revision is a direct response to the presidential guideline on the need to reduce red tape, formalise the economy, expand the tax base and set up more small and medium companies and jobs for young people”, stressed Impissa.

The Government has described the revision of the licensing system as “a structural economic reform”, intended to speed up the transformation of the business environment though digital procedures that are less dependent on the state bureaucracy.

At the same meeting the government approved new minimum prices for strategic agricultural products, including cotton, soja, sesame and sunflower, in order to protect small producers from market volatility.

The producer price for top quality cotton rose from 22 to 27 meticais per kilo, while for top quality soja the price per kilo rose from 24 to 30 meticais. According to the government, the measures are intended “to balance the market, and protect the interests of the stakeholders, particularly the small producers”. (MT)