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2007 - Mozambique - Private Sector Country Profile


The private sector is increasingly viewed as an engine for growth across the African continent. Mozambique is no exception. While the private sector in Mozambique languished for years during the period of civil war and centralized economic management, the country’s prospects are now more favorable than ever to promoting the private sector as a major tool to accelerate development and contribute to poverty alleviation. The African Development Bank (ADB) has established support to private sector development as one of its key medium-term strategic objectives. However, to support the private sector effectively, it is important first to have an understanding of the country context, the potential and constraints, so that an effective assistance strategy can be mapped. The main objective of this report is to provide an overview of the context for private sector development in Mozambique. The report is based on deskwork, data assembled by ADB, as well as field visits to discuss major issues, test assistance ideas, and acceptability; and identify new directions for stimulating solid and sustainable private sector growth.1 Efforts have been made to identify the most recent data, critical in a rapidly evolving country, and to identify specific opportunities or actions to be undertaken to open new opportunities. Following this introduction, section 2 provides an overview of the business environment in Mozambique today. Section 3 looks at strengths and potential, while section 4 examines key constraints to be overcome. Section 5 provides an overview of the critically important labor market. Section 6 proposes actions to be undertaken by the Government and donors to achieve the common objective of developing a vibrant private sector in Mozambique.

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