PSWG Policy Priorities for 2009- Annual Planning
Maputo, February 2009
Criteria for setting policy priorities
• Quick-win reforms to improve Mozambique Doing Business Ranking
• Broad-based business enabling environment reform
• Maximum of five policies per year
Proposed Quick-win Reforms
Starting a business
Eliminate minimum capital and bank deposit requirement
71 133
Dealing with licenses
Combine three procedures (request of DUAT, topographic plan and building permits) and impose statutory time limits
105 136
Trading across borders
Eliminate pre-shipment inspection and introduce the single window
131 137
Paying taxes Eliminate the stump duty 87 140
Employing workers
Approve of Labor Law
Closing business
Approve bankruptcy and recovery law
Getting Credit
123
Enforcing Contracts
Improve functioning of commercial court and use of arbitration centers
unknown unknown
Registering property
Convert SISA into service fee unknown unknown
Protecting Investors
Reduce time and cost 149
Mozambique best ranking 38
Broad Based Reform
Reduce time and cost 124
Create a new private credit bureau and improve securities law
Already approved. Impact in two years due to transitional provisions
Reduce time and cost required to resolvebankruptcies,
133 Already approved.
Reduce number of payment from 37 to 36 88
Reduce firing cost - bringing in line with SADCcountries
161
Reduce the number of procedures to getconstruction permits from 17 to 15; and time from381 days to 201 days
153
Reduce time to import from 32 to 23 days; andimport documents from 10 to 9
140
Indicator impact
Overall impact (from 141)
Minimum capital to start a business reduced from122.5% to 0% GDP per capita; procedures from 10to 9; and time from 26 to 25 days;
144
Topic Suggested reform Impact Current Rank
(DB 2009)
Proposed Broad Based Reforms
Area Suggested reform Observations
Allow free transferability of rural land use concessions (DUATS)
Establish a mechanism that allow the use of DUAT as collateral Increase tax on land to encourage user to make productiveinvestment
Fiscal Create single tax regime for SME’s Already approved
The 2007 labor law’s quotas for expatriate workers should beautomatic with no unnecessary red tape.
Reduce the cost of firing in line with the SADC countries
Create a second-tier bond market to open new avenues forfinancing for larger domestic businesses, and create competition forthe banks in dealing with traditional clients.
Introduce new banking regulations on commissions and fees thatenhance transparency in the banking system.
Amend Aviso 5/2005 to broaden the set of borrowers who canqualify for loans in foreign exchange
Create a new private bureau and improve securities law
Expand air transport competition and decrease taxes and fees forairlines and passengers;
Government and private sectorpriority;
Open sea freight competition for domestic shipping; Impact on enhancing Mozambiquecompetitiveness in SADC region
Remove Barriers at Borders
Trade
Land
Less political will to embark on land reform.
Finance
Private sector priority due to lackand high cost of finance fordomestic investment;
Labor
Already approved
Selected ReformsTopic
Selection criteria
Desired Outcome 2009implementing
institutionOther Partners PSWG Projects
Analytical support
PSWG focal point
Starting a business
Quick-Win
Eliminate minimum capital
and bank deposit
requirement
Ministry of Justice
Ministry on Industry and Commerce and CTA
WB, USAID, Norwegian Embassy and GTZ,
USAID
Dealing with
Licenses
Quick-Win
Combine three procedures (request of DUAT, topographic plan and building) and impose statutory time limits
Municipality Authority
Ministry on Industry and Commerce, Ministry of Public Works and Housing and CTA
GTZ and USAID USAID
Trading across
borders
Quick-Win/ PAPs
Eliminate pre-shipment inspection and introduce single window in Mozambique
Tax Authority (Customs)
Ministry on Industry and Commerce, Ministry of Finance and CTA
USAID TIP, EC, and IF Mechanism
IF Mechanism
Create a second-tier bond market. Introduce new banking regulations on commissions and fees.Amend Aviso 5/2005.Create a new private credit bureau and improve Expand air transport
competition and decrease
taxes and fees for airlines
and passengersOpen sea freight competition for domestic shipping; Remove Barriers at Borders
USAID
TradeBroad Based
Ministry of Transport and
Communications; and Tax
Authority
Ministry on Industry and Commerce, Ministry of Tourism, Ministry of Finance and CTA
IF Mechanism Italian Coop
FinanceBroad Based
Central Bank
Ministry on Industry and Commerce, Bolsa de Valores de Moçambique, CTA and Financial Sector Working Group
Next stapes
• Produce the Technical Notes• Complete the Work plan for the selected
policies, including:– PSWG Focal point– Available PSWG Projects– Available Analytical Support
• Establish the Implementing and Monitoring Mechanism
• Thank You!