Mozambique: CTA for Reforms to Reduce Costs of Doing Business

15 July 2026
Agencia de Informacao de Mocambique (Maputo)
By Alberto Massango

Maputo — Mozambique's Confederation of Business Associations (CTA) calls for adoption of structural reforms to reduce the costs of doing business, improve corporate liquidity, and strengthen legal predictability.

According to Álvaro Massingue CTA chairman, speaking at the 21st Annual Private Sector Conference (CASP), Mozambique possesses favorable conditions to establish itself as a competitive economy but needs to transform its comparative advantages into competitive advantages through productive investment, industrialization, and increased exports.

"There will be no sustainable development without a strong, competitive private sector capable of generating wealth, jobs, and opportunities for Mozambicans", he said.

However, Massingue acknowledged the progress made by the government in improving the business environment, highlighting the creation of the Unified Inspection of Economic Activities, the approval of the Local Content Law, the revision of the legal framework for hydrocarbons and mining, and the establishment of the Development Bank.

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"But constraints requiring urgent solutions persist. Key challenges are related to proliferation of administrative fees and charges, foreign currency shortages, delays in state payments to suppliers, and outstanding VAT refunds. Fiscal sustainability must be achieved through economic growth, broadening the tax base, and increasing state efficiency, rather than by increasing the burden on businesses", he said.

Massingue also expressed concern regarding issues related to the application of incentives approved under investment legislation, which "have created uncertainty and affected investor confidence."

"Investor confidence is a national asset. When investors decide to deploy capital in a country, they do so based on the stability of the rules, legal certainty, and the predictability of public policies," he emphasized.

Paula Vasquez, speaking on behalf of the partners of the private sector, said that Mozambique continues to offer favorable conditions for attracting investment, thanks to its strategic location, abundant natural resources, the expansion of the energy sector, and its young population.

However, she warned that challenges persist regarding foreign exchange restrictions, fiscal pressures, climate shocks, and uncertainties that continue to affect business activity.

"Companies are increasingly seeking predictability, administrative simplification, transparency, access to finance, consistency in implementation, and fair market conditions. The success of the reforms will depend on their effective implementation, institutional coordination, and the monitoring of results", she said.

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