Mozambique
The focus of this greatly improved third edition is to provide comprehensive quantitative information on African central government debt instruments, both marketable debt and non-marketable debt.
The coverage of data is limited to central government debt issuance as well as bi-lateral, multi-lateral and concessional debt and excludes therefore state and local government debt and social security funds.
This publication provides comprehensive and consistent information on African central government debt statistics for the period 2003-2012. Detailed quantitative information on central government debt instruments is provided for 17 countries to meet the requirements of debt managers, other financial policy makers, and market analysts. A cross country overview on African debt management policies and country policy notes provides background information on debt issuance as well as on the institutional and regulatory framework governing debt management policy.
This publication provides comprehensive and consistent information on African central government debt statistics for the period 2003-2013. Detailed quantitative information on central government debt instruments is provided for 17 countries to meet the requirements of debt managers, other financial policy makers and market analysts. A cross country overview on African debt management policies and country policy notes provides background information on debt issuance as well as on the institutional and regulatory framework governing debt management policy
In an era defined by the urgent climate crisis, unpredictable weather patterns and increasingly frequent natural disasters, ensuring infrastructure resilience to such events is paramount. This report discusses ways of enhancing government capacities to prevent, react and rebuild, thereby minimising the impact of natural disasters on infrastructure assets and operations. It identifies data, collaboration and technologies as drivers of resilience, and highlights financial resources, technical skills and regulatory frameworks as key enablers. The report presents seven actionable principles to ensure infrastructure resilience, drawing from global good practices and in-depth analyses of infrastructure projects in Colombia, Ghana, India, Indonesia, Japan, Mozambique and the United States.
Market-based economic policies have been an important factor in stimulating economic development in Mozambique over the past 15 years, securing one of the highest growth rates of African non-oil economies during this period. Since the early 1990s the country has moved away from central planning, created the Mozambique Investment Promotion Centre (CPI) and reformed its investment code to strengthen investors’ rights. This momentum is upheld today and since 2013 CPI is elaborating a national investment promotion strategy together with sector-specific investment promotion agencies.
The Investment Policy Review of Mozambique is one of five reviews carried out in member states of the Southern African Development Community (SADC) on the basis of the OECD Policy Framework for Investment (PFI). Undertaken by the NEPAD-OECD Africa Investment Initiative in the context of the “Unlocking Investment Potential in Southern Africa” programme with the support of Finland, it reflects the growing co-operation between the OECD and its African partners.
This chapter maps progress in developing and attracting investment in all key infrastructure sectors: telecommunications, electricity, transport, and water and sanitation. It also evaluates the policy framework for public procurement and PPPs in infrastructure projects. The government of Mozambique has integrated infrastructure investment into broader economic growth objectives under several medium and long-term planning documents, most notably the Action Plan for the Reduction of Absolute Poverty (PARPA). However, there is generally a need to strengthen inter-ministerial collaboration in the planning of public investment in infrastructure. In addition, Mozambique can, and should, embrace the new opportunities presented by an expected boom in coal mining and the development of related infrastructure. The country has exported electricity to its neighbours in the past and also played a role as a regional transportation node, but now needs to focus more on meeting domestic infrastructure needs. Some decentralised initiatives in water supply and renewable energy have made an impact but more can be done to scale and replicate them to achieve maximum effectiveness.
This chapter highlights the progress made by Mozambique in improving its investment framework, notably through: the 1993 Investment Law and its related 2009 Regulations. The Land Law 1997 and subsequent processes of land allocation and registration, as well as intellectual property and the judiciary, are likewise investigated from an investment perspective. Mozambique has also initiated several recent reforms, where effectiveness and implementation will need to be carefully evaluated – while it aims for increased liberalisation, the 2009 Foreign Exchange Law for instance introduces some additional constraints on foreign investors. More broadly, although there are few sectoral restrictions on foreign investment, the Investment Law is somewhat ambiguous in its provisions on national treatment; moreover, some indirect forms of discrimination against foreign investors are contained within public procurement and labour laws. In addition, the potential role of overarching bodies for investment policy design and dialogue, such as the Investment Council and the newly-established Land Consultative Forum, is also explored. This overview of the legal framework for investment highlights certain considerable weaknesses that continue to create barriers for investment in Mozambique.
Investment promotion and facilitation measures can be effective instruments to attract investment, provided they aim to correct for market failures and are developed in a way that can emphasise the strong points of a country’s investment environment. Mozambique has taken important steps in building a more enabling framework for setting up businesses, including under the “Strategy for improving the business environment in Mozambique” (EMAN, for 2008-12). This chapter examines various measures adopted by the government to reduce administrative burdens on investors, and notably the role of the Centre for the Promotion of Investment (CPI). The CPI would benefit from greater responsibilities in terms of interaction with established investors and spearheading the EMAN Strategy. This chapter also highlights the need for a more systematic evaluation of the impact of investment incentives, especially within Accelerated Economic Zones and in sectors such as mining which host most of the country’s mega-projects. The governance and administration of these incentives could also benefit from further transparency and coherence. Finally, efforts remain necessary to tackle the fiscal, financial and human resource constraints facing SMEs, so as to enable them to feasibly latch onto investment linkage opportunities.
Resource abundance does not always bring sustained economic growth and development. Moreover, the mining sector generally provides little direct employment in the regions where extraction occurs. In an attempt to derive greater benefits from their resource endowments, and increase linkages with other parts of the economy, some minerals-rich countries have instituted local content and procurement policies (LCPs). The benefits sought include employment generation, supply chain development and technological and knowledge transfers. Measures that aim to increase local content and procurement in the extractive industries are common, including in many OECD countries.
This study examines local content policies in 10 minerals-rich countries and provides some observations about their efficacy and the desirability of their use. A wide range of measures are examined, from industry-wide, mandatory quantitative targets to voluntary initiatives undertaken at the firm level, encompassing diverse policy objectives and implementation strategies. The range of countries covered is broad including OECD countries, developing countries and least developed countries. The study does not recommend a “one size fits all” policy mix but guards against the distortions created by overly prescriptive, mandatory local content requirements.