1 / 21

Competition Policy And Private Sector Development In Mozambique Presentation By Alberto Bila

Competition Policy And Private Sector Development In Mozambique Presentation By Alberto Bila UEM - Faculty of Economics and ADECOM. Mauritus 29-30 of March 2007. Introduction. Mozambique environment Peace and Macro-stability Growth average – 8% GDP per-capita +/- 285USD

ishana
Download Presentation

Competition Policy And Private Sector Development In Mozambique Presentation By Alberto Bila

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Competition Policy And Private Sector Development In Mozambique Presentation By Alberto Bila UEM - Faculty of Economics and ADECOM Mauritus 29-30 of March 2007

  2. Introduction Mozambique environment • Peace and Macro-stability • Growth average – 8% • GDP per-capita +/- 285USD • Population 19 million • GDP = 5.5 billion USD • =-

  3. Mozambique environment • Agriculture – 25% of GDP • Industry – 35% 1% • Services – 40% 5% • FDI projects improved external trade balance

  4. Economic Policy Context • 1. Macro-economic reform policy reform • - ”Economic reabilitation Program” 1987 • - Raise production levels • - Reduce financial imbalances • - Create a basis for growth

  5. Economic Policy Context • - Fiscal Adjustments • - Devaluation of the currency • - Agriculture – Government controled prices of few items (sugar, bread, fuel and medicine) • - Crips rose

  6. 2. Domestic and external trade policy • Set out objectives • Rehabilitation and expancive of the commercial out work • Stabilishmentof trade systems ( including incentives) • Creation favourable environment for private sector development • Revision of commercial code and trade laws • Development of human resourses

  7. Competition Policy Scenario in Mozambique • Need for competition policy: • - 43% consumers affected • - Effectiveness of existing regulation • - Competition law to cover all enterprises

  8. 3. Investment climate and business incentives • Investment law is aimed at attracting local and foreign investors • Exemption from customs • Tax incentives (ten years maximum) • Industrial free zones (IFZs)

  9. 4. Industrial Policy •Aims • Developing industry and making better use of natural resources • -increasing the value added to products • - Diversity national industry • - Subsisting imports of intermediary goods • •Indicates the role: • - state is to regulate and supervise the development of industry • - private sector is to invest • - informal sector in generating employment and income.

  10. 5. Poverty Reduction Action Plan (PARPA) • Overall objects • - reduce living in poverty from 70% 1997 to below 50% by 2010 • - economic growth • - public sector investment in infrastructure and institutional reform.

  11. Environment for private sector development • GOOD • - creating a stable macroeconomic environment • - liberalizing controls on foreign exchange transictions; • - liberalizing prices licensing and other controls • (domestic markets and external trade) • - rationalising tax and tariff structure • - liberalizing investiment laws • - actively promote foreign investment and exports.

  12. Private sector dev. In Mozambique • •SMES in Mozambique • - Little priv. Sector development • - SMEs supper the most from adverse economic conditions and little conducive business climate • •The failed potencial of privatization for private sector development • - under-developed network utilities • - Financial policy envirnment lilted towards foreign investors • - stock-market in its infancy

  13. Private sector dev. In Mozambique • • The costs of doing business in Mozambique • - Direct costs such as labocer are not high

  14. Private sector dev. In Mozambique • - Indirect costs account for 20-30% of costs • Energy: 1/3 of total, transport telecom, security • - Limited acess to finance • -Limited market acess

  15. Insufficient and Deficient Infrastructure development • •Obstacles • - Effect of lack and disruption in energy supply • -high transport costs • - Major improvment: TELECOM

  16. Insufficient and Deficient Infrastructure development • •Access to infrastuture: • Energy botleneck and exclusion of rural population • .

  17. Insufficient and Deficient Infrastructure development • • Electrification rate – 20% • • TELECOM: impressive progress - fixed 3 per 100 inhabitants - mobile 9 per 100 inhabitants

  18. A limited access to finance • •Bank credit to private sector in 2005 (in % GDP) 3% • •Adopting axisting lending institutions of tools • - More towards on integral system for financing SMEs

  19. Limited market integration • • Trade Issues • - limited intra-regional Trade • - limited insertion in world economy ( nom trade-barriers) • - Emerging markets ( China)

  20. A predatory public sector • •Taxation, corruption and inefficient regulation • - doing business paying tax rabk/ 17580 • •Not social trouble

  21. Key messages • •Rethinking the role of state in Mozambique • - Limiting interface with private sector activity last increase dialogue • - Strengthening institutional capacities ( regulators framework and public sector management

More Related