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OECD Investment Policy Reviews: Mozambique 2013

image of OECD Investment Policy Reviews: Mozambique 2013

OECD's comprehensive review of investment policy in Mozambique.  After a country overview, this report examines investment policy, investment promotion and facilitation as well as infrastructure in Mozambique.

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Investment promotion and facilitation 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.

English

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