The Package of Economic Acceleration Measures (PAE) was launched in August 2022 by the President of the Republic, Filipe Nyusi, with the aim of contributing to the development of key sectors of the economy by improving the business environment, transparency and governance.
Almost two years after the launch of the PAE, the private sector points out that there is still a lot of work to be done if the measures are to bring the desired gains and begin to have a truly positive effect.
The president of Mozambique’s Confederation of Economic Associations (CTA), Agostinho Vuma, argued that some points of the SAP should be readjusted based on the current scenario. During the meeting of the Interministerial Group for the Removal of Barriers to Investment (GIRBI), held on Wednesday, July 17, Agostinho Vuma presented some proposals for adjustments:
Inclusion of Aquaculture in the VAT Exemption: Vuma suggested that the aquaculture sector be included in measure 2 of the SAP, which deals with the exemption of Value Added Tax (VAT) on imports for the areas of agriculture and electricity.
Review of the Fuel Mix: The president of the CTA recommended that the government review measure 10, which introduces the obligation to mix imported fuels with biofuels. Vuma stressed the importance of considering primary production and the existence of industries that process raw materials such as sugar cane, corn and mapira.
Extension of the Corporate Income Tax Reduction Period: The CTA president suggested extending the period of validity of the measure to reduce Corporate Income Tax (IRPC) to 10%, due to its complexity and impact on the economy.
Aside from the suggestions, Vuma warned that some of the reforms set out in the SAP are not implementable in isolation and must be in line with current legislation and existing challenges. He stressed the need to create preconditions, such as the regulation of the Labor and Private Investment laws, for the implementation of the reforms to be effective.
The Minister of Industry and Commerce (MIC), Silvino Moreno, stated the importance of joint work between the private sector and the government to improve the business environment in Mozambique. He called on the partners and the Confederation of Economic Associations to ensure better alignment and responsibility on both sides in proposing joint actions.
