The Confederation of Business Associations of Mozambique (CTA) believes that the business environment in the country may improve with the likely introduction of new regulatory instruments in the second quarter of the current year.
CTA’s expectations are based on the possibility of revision of the Labor Law, introduction of the electronic visa, General Regulation for Access to Off-Grid Power, as well as the revision of the Land Policy and Land Law for the removal of barriers in the sector, and the Regulation for the Exercise of Ship Agency Activity.
The CTA’s desire is inserted in the business robustness index, a recently released document that makes a comprehensive assessment of the performance of companies during the first quarter of 2021, in which a reduction from 40 to 28% compared to the last quarter of 2020 is seen.
About the Labor Law, CTA understands that the legal framework in force for more than 10 years no longer responds to the dynamism resulting from globalization and trends of flexibilization of labor relations, so it is intended to be more balanced and ensure the increase of formal employment in the country.
“This law should ensure business competitiveness, creating conditions for an increase in formal employment, promoting entrepreneurship and attracting foreign investment,” the document stresses.
It also defends the need for electronic visa authorization in the country, which will translate into a reduction in the waiting time for the issuance of the visa and a reduction in other costs.
“There are people who had to travel from one province to another to process their visa,” the report quotes. The source adds that “there is also an expectation about General Regulation of Access to Off-Grid Energy. The changes in the law on this sector aim to ensure the use of clean and environmentally friendly energy, increasing the competitiveness of the sector, which will contribute to the massification of access to energy by the population.”
“Among others, it is expected that the regulation will serve as a platform for the adjustment of the customs tariff regime applied to energy production equipment, from renewable sources, and contemplate a framework of incentives for scientific research and innovation oriented to new technologies,” reads the report.
