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Trade Policy Framework Mozambique's external trade policies are designed to create an environment conducive to promoting its products in international markets, especially in the developed countries of Europe, America, and Asia without prejudice to the promotion of intra-African trade. Trade policies are formulated with a view to speeding up Mozambique's industrialisation process, and in such a way as to make access to foreign markets easier for Mozambican products. In pursuing these objectives, Mozambique has entered into multilateral, regional, bilateral and preferential trade agreements as mentioned below. Mozambique is a member of the World Trade Organization, (WTO) World Bank, the International Monetary Fund (IMF), the Cotonou Agreement and the Southern Africa Development Community (SADC.) Mozambique has signed bilateral trade agreements with Malawi and Zimbabwe, and a Trade and Investment Framework Agreement with the United States of America. Trade rade rade Policy Policy Refor Reforms: Refor ms: The trade policy reforms in Mozambique include a progressive reduction of taxes on international trade, reduction of barriers to imports and exports of goods and services. In 2002, a new customs tariff schedule was introduced. In 1997, Mozambique signed a contract with Crown Agents, which enabled the modernisation of the Mozambican customs services, Direccao-Geral das Alfândegas, with IT and highly qualified personnel. Alfândegas is in the process of harmonising documentation with the region and improving its infrastructures with a view to facilitating trade and reducing delays in the clearing process. For Foreign For Foreign eign T TTrade: T rade: Rapid expansion of exports has been an important source of growth during the past 10 years in Mozambique. Since the early 1990s, exports have expanded at an average rate of 10% per year, substantially higher than world exports (6%). Mozambique is one of the few countries in Africa that managed to increase its share in world exports. This rapid export expansion was led by private initiative both national and foreign and largely due to the implantation of Mega projects MOZAL (aluminium) and SASOL (natural gas). 19
Labour Market Policy Framework In view to rendering the labour market more flexible through simplified foreign labour employment mechanisms, 2 the Government of Mozambique introduced a programme that aims to improve the quality of labour, through general or specific training initiatives. On the other hand, the Government which was sworn in February 2005 intends to give much focus on technical and professional education. The two most complex issues in the labour law reform have to do with the pressure to change the law, making it easy to hire (expatriates) and fire workers. These reforms are aimed at the overall goal of improving the business environment in Mozambique, which has consistently been cited as one of the least friendly business environment. Recent estimates from the World Bank show that Mozambique is lagging behind in many categories, even at regional standards. For instance, in Mozambique, it takes nearly 153 days to start a business against an average of 60 days in the region. The costs of firing a worker are twice higher than the region's average. Achievements Towards Convergence The SADC Memorandum of Understanding (MOU) on Macroeconomic Convergence, adopted by the Ministers of Finance and Investment of SADC, identifies the indicators for the macroeconomic convergence process follow-up, as well as the targets regarded adequate for each of the indicators, and also establishes the respective calendar. Overall, the Mozambican Government long-term objectives (2005- 2009) for those indicators are in line with the objectives of the SADC regional integration. Our analysis is limited by the fact that the country does not have clear and quantified targets beyond 2009, the end of the term of the Government currently in place. Most of the information for 2009 onwards is qualitative and without clear and quantified targets. Commenting specifically on the target indicators of the MOU on macroeconomic convergence, we note that the targets set out need to be reanalysed taking into consideration the specific need of each 2 Decreto 57/2003, de 24 de Dezembro 20
Page 1 and 2: Regional Integration in Southern Af
Page 3 and 4: 2 Impressum Published by Friedrich
Page 5 and 6: South Africa’s international trad
Page 7 and 8: Table of Contents Preface..........
Page 9 and 10: 10 10 Concluding Concluding Remarks
Page 11 and 12: List of Tables Table 1: SADC Countr
Page 13 and 14: List of Abbreviations ACP Africa Ca
Page 15 and 16: SQAM Standards, Quality, Acreditati
Page 17 and 18: five-year period. The Government Pr
Page 19: Despite these substantial achieveme
Page 23 and 24: This made it possible to bring down
Page 25 and 26: Domestic Domestic Savings Savings (
Page 27 and 28: Net Net Net Primar Primary Primar P
Page 29 and 30: Gender Gender Equality Equality and
Page 31 and 32: Lack Lack of of Economic Economic D
Page 33 and 34: The SADC ambitious goals and object
Page 35 and 36: Assegurar o desenvolvimento económ
Page 37 and 38: população vivendo abaixo da linha
Page 39 and 40: objectivos da integração regional
Page 41 and 42: linha com os compromissos assumidos
Page 44 and 45: 1 Introduction O n 25 June 1975, Mo
Page 46 and 47: 2 RISDP Goals and Objectives 2.1 Po
Page 48 and 49: 3. To ensure equitable and sustaina
Page 50: implementation of the Trade Protoco
Page 53 and 54: Liberalising exchange controls on c
Page 55 and 56: products will be duty-free tradable
Page 58 and 59: 4 Macroeconomic Stability Indicator
Page 60 and 61: 4.3 Current Account The SADC overal
Page 62: As illustrated in Table 5.5, in 199
Page 65 and 66: Keeping inflation at low and stable
Page 67 and 68: We will focus our analyses on the m
Page 69 and 70: Central Bank resources as one of th
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Table able 9: 9: Mozambique Mozambi
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Still in the context of fiscal poli
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Additionally, among the variables t
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5.4 Macroeconomic Convergence Probl
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tend to increase ownership of long
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Despite this structure of the econo
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Figur Figure Figur e 2: 2: Composit
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Figur Figure Figur e 4: 4: Mozambiq
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Table 14 presents GDP growth rates
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Table able 16: 16: Gover Government
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Mozambique has made remarkable prog
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Real exchange rates may change due
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infrastructure will improve, the wo
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products only beginning this year (
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"two stage" transformation nature.
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Table able 19: 19: Partner Partner
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As for imports, the use by our impo
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force behind the build up of debt.
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AGOA African Growth and Opportunity
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kinds, which kept goods produced in
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egarded as the prime suspects for t
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6.16 Impact of WTO Rules The open-e
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Creating structures to facilitate t
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6.18 Analysis of Labour Market Tren
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Table able 23: 23: Companies Compan
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With the operationalisation of vari
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Cost-benefit analysis could help th
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GNP per Capita/GNI per Capita (in U
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7.1 Analytical Tools Used for Socia
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The main challenges in the fight ag
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High education costs (despite the a
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Eskom and EDM (Mozambique Power Gen
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lowest HDI (0.379). This low level
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agricultural products leave conside
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side deficiencies, such as poor lev
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Where L represents labour allocatio
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Import penetration in this sector i
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ability to import duty free. A comp
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ates have been declining in real te
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progress and reforms might be neces
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may also occur when there is displa
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Static gains tend to focus on the i
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Constitution making, democratic ele
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monetary policies, financial market
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To meet SADC requirements and sell
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Mozambique (2004). Removing Obstacl
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List of Tables Table 1: Type of Bus
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Table 48: % Have You Attended Works
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60% of Non-State Actors are from Ci
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In general the survey allows an ana
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actividade, são muito favoráveis.
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A constituição de parcerias entre
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Data Collections To facilitate the
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62.5% of the companies inquired and
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while four of those strengthen slig
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producers, only answers from Busine
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The regional integration in SADC wi
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Figur Figure Figur e 3 3 -T -Type -
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Table able 5 5 -T -Type -T ype of o
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Table able able 10 10 10 - - Shar S
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Table able 14 14 - - % % of of Main
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Table able 26 26 - - Annual Annual
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Table able 32 32 - - T TType T ype
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Table able 38 38 - - Par Par Partic
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Table able able 42 42 - - % % If If
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Table able 44 44 - - % % Most Most
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Table able 47 47 - - % % Is Is Regi
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216 Copies of this publication can
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