After considerable time of declines and stagnation, Mozambique finally rose three places over 2019, ranking 135th in the global doing business ranking, in the latest World Bank report.
If we are to continue to rise solidly, it is imperative to pursue reforms and improvements, especially in the tax area and beyond.
It is now expected that the improvement of the business environment in Mozambique, as highlighted by the World Bank, will strengthen the confidence of those who do business with our country at an international level.
The World Bank classification means that the Mozambican economy is improving, even though it recognizes that these improvements do not have the same impact and meaning in all sectors, primarily at the level of the entire population. It is not for this reason that the improvements identified by the World Bank can not be recognized and extolled, which must be improved, since they are decisive for the impact and greatness that may affect all.
There is no doubt that the World Bank has brought good news that encourages everyone, the Mozambican government and business sector. The announced rise should reflect, to some extent, the effort that has been made to improve the business environment in Mozambique.
In fact, Mozambique has no other place to go, let alone down, because it has already hit the ground sufficiently, so that if it has to survive as a viable entity, it has to do something, and it is to extol the results that now present.
It is known that the World Bank’s assessment is a set of indicators leading to an average that places the country in a certain position.
If overall performance is positive, according to the findings of the World Bank, we are challenged to look at the indicators on an individual basis. It will be unnecessary to remember the extreme importance of the security sector. Investors never put their money in a country where it is clearly known that security levels do not inspire confidence.
Investors also want clarity about taxes. Before deciding whether or not to invest in a given country, investors map the fiscal situation elsewhere and will never go to countries that penalize them from a high-tax rate.
The country’s justice system to welcome investment must also inspire total confidence in investors. Investments always bring with them potentially litigation situations and the businessman wants to be absolutely certain that in case of conflict the court will act quickly and independently, objectively and in strict compliance only with the law.
If Mozambique does not improve in the judicial system we will continue to have problems and in the next report we can regress.
The World Bank report draws attention to the fact that the poverty component continues to pose a serious problem and highlights the remittances that the demographic explosion represents. The size of population growth and the size of economic growth are at a totally different pace.
The population grows much more than the country’s economy, with new entrants every day, especially urban poverty, which can generate other social and political implications in the country.
The World Bank stresses the rise in economic and social disparities, which means that the gap between those who have too much and those who have nothing at all is increasing. A society that wants to develop in a climate of harmony, can not allow these inequalities, because it even damages the well-being of the rich. Those who do not have nothing to lose. If they have to destroy an entire city to claim inclusion in welfare, they will do so.