As part of President Nyusi’s PAE (Economic Acceleration Package) launched in August 2022, Mozambique further implemented last week some of the measures aimed to create a better and more competitive business environment.
The PAE, a structured package of 20 reform measures, aims to place the private sector at the center of the country’s economic transformation and development, in order to promote the diversification of productive activities, enhance opportunities for their expansion, as well as to guarantee the use of the unexplored potential of the country.
As part of measure 15 (the simplification of administrative processes in the relations between the state, companies, and people, Mozambique published a decree extending from 11 to 66 the number of business activities that can be started without a license (Decree No. 27/2023 of May 23rd). Essentially most types of businesses that do not require a technical overview or specific licenses can be registered by an online process dubbed “mere communication”.
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For now, the communication can be done on the BAU location, a single service counter, and by the end of the month a revamped online platform called “eBau” will go live allowing entrepreneurs to notify the government of the opening of activities digitally and immediately start operating. The new rules will facilitate the opening of new businesses which among other effects can enhance Mozambique’s easiness of doing business, facilitate the transition of informal to formal entrepreneurs and accelerate the creation of new jobs.
Better transparency on public procurement
In addition, the Ministry of Economy and Finance also published a Ministerial Diploma extending the validity of Tax Clearance Certificates from 3 to 12 Months. The extension is part of measure 12 which is meant to stimulate the local production of goods acquired in scale by the state and provides businesses with a longer timeframe to utilize the certificate. For those acquainted with the country’s business environment, that means a significant reduction in red tape and the overall cost of doing business.
Mozambique President Filipe Nyusi’s launched the PAE – Package of measures for Economic Acceleration on August 2022Additionally, a significant change has been introduced regarding the use of the certificate. It will no longer be limited to a specific public tender and will serve as a universal certificate applicable to all tenders during its validity. In addition, the Diploma establishes the obligation to disclose value limits and budgets involved in the announcement of every public tender at the beginning of the tender process. This increased transparency will provide potential participants with a clearer understanding of the financial scope of the competition, enabling informed decision-making and ensuring a more competitive process.
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These updates are a positive step towards streamlining administrative procedures and enhancing transparency in public procurement. By extending the validity of the clearance certificate and standardizing its usage, businesses will experience greater flexibility and ease in participating in various tenders.
At the same time, the disclosure of value limits on public tenders ensures fairness and enables better preparation from interested parties, fostering a more competitive and efficient procurement process.
