LUSA 11/08/2025

Lusa - Business News - Mozambique: Businesses present government with six priority reforms

Maputo, Nov. 7, 2025 (Lusa) - Mozambique entrepreneurs presented the government with six proposals on Friday for priority reforms, including a review of taxation, strengthening the logistics network and implementing an industrial energy supply tariff.

"The reforms presented here represent the private sector's vision for the next 12 months. Realistic reforms with a rapid and structuring impact aimed at boosting national competitiveness, attracting investment and consolidating the path towards Mozambique's economic recovery," said the president of Mozambique's Confederation of Economic Associations (CTA), Álvaro Massingue.

These proposals were presented by businesspeople to the economy minister, Basílio Muhate, at the Business Environment Monitoring Council and will be taken to the Annual Private Sector Conference (CASP) 2025, which will take place from 12 to 14 November in Maputo.

Among the six proposed reforms are infrastructure and logistics; energy and fuels; industrial competitiveness and business inclusion; agriculture and post-harvest logistics; tourism and connectivity; and inspection and business sustainability.

Álvaro Massingue pointed out that the "high cost of energy continues to limit industrialisation" in Mozambique, which is why the CTA suggests the creation of a competitive industrial tariff and stable supply contracts, as well as the implementation of a central transport network, which will ensure north-south energy interconnection and reduce external dependence. It also includes the proposal to introduce an agricultural diesel compensation mechanism with digital control.

On taxation and business sustainability, the CTA argues that the current tax system, such as income tax and VAT, does not reflect the specificities of the sector and penalises "especially emerging productive sectors".

"Here we propose revising the tax codes with a focus on adjusting the rates to the reality of each economic sector and the company, small, medium and large. Creating tax incentives for the productive and exporting sector, ensuring greater fiscal predictability, stimulating investment and business formalisation," said the CTA president.

In agriculture and post-harvest logistics, Massingue said that post-harvest losses remain high due to the lack of warehouses, silos, and cold storage systems, and that the CTA is proposing the creation of a national storage and cold chain programme. "In public or private partnership, saying that this would better preserve agricultural products, reduce waste and increase producers' profitability".

In the field of infrastructure, the CTA proposes the implementation of a single national logistics window that is interoperable between ports, customs and transport, and the phased rehabilitation of logistics corridors through public-private partnerships that ensure operational efficiency, while in tourism and connectivity it advocates an "open skies" policy and fare competition between airlines, creating integrated tourist routes that combine beaches, culture and natural parks.

In industrial competitiveness and business inclusion, the CTA points to challenges that limit the integration of micro, small and medium-sized companies into value chains, due to the lack of certification, shortage of foreign currency and difficulty in accessing finance, and therefore proposes "a transparent mechanism for allocating foreign currency, prioritising industrial and agricultural importers".

"And the availability of an industrial financing line, through the sovereign fund, the Guarantee Fund and commercial banks, with subsidised rates and terms adjusted to the production cycle," he said.

Without commenting on the proposals, Economy Minister Basílio Muhate assumed that "improving the business environment and strengthening public-private cooperation" are the government's "strategic priorities for the next economic cycle".

EYMZ/ADB // ADB.

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