28 of March 2016

Doing Business 2016:Mozambique

The World Bank believes that improving the business environment in Mozambique remains crucial to promote businesses and job creation. Mozambique’s performance fell slightly, on the World Bank’s Doing Business 2016 ranking and being now in the133rd position (128th in the previous report) worldwide, 13th in Africa, 8th in the SADC and 4th in the CPLP.

The report argues that decisive measures need to be made to solve the difficulties faced by Small and Medium Enterprises (SMES) in obtaining credit and reduce the amount of time potential investors spent opening a new business.  A reliable electricity supply is vital for the operation of any business, as is the transparency of the tariffs for the advance planning of future expenses. Access to energy add challenges on the ease of doing business in Mozambique.

Several economies such as Mozambique receive an overall score of 0 on the reliability of supply and transparency of business and domestic tariffs index.

Getting Electricity is one of the critical indicators, among the indicators evaluated, and the next Doing Business report, already underway, will measure the reliability of electricity supply and the duration and frequency of power outages.

Doing Business is a comparative annual report produced by the World Bank Group that measure regulations that enhance business activity and those that constrain. It presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies.

Doing Business covers 11 areas that affect the life of a company. Ten of these areas are included in this year's rankings on the ease of doing business: starting a business, obtaining construction permits, getting electricity, registering property, getting credit, protecting minority investors, tax payments, international trade, contract enforcement and insolvency resolution.

Click here to access the full report.