Supporting the Policy Enabling Environment for Development
USAID SPEED

Institute of External Trade Evaluation

The Mozambican Export Promotion Agency (IPEX) is generally regarded as having been ineffective in promoting export development in Mozambique. For that reason, the Ministry of Industry and Trade (MIC) has requested a second proposal to establish an Institute of External Trade (ICEM) in Mozambique. It was envisioned that ICEM would build on the resources of the existing IPEX, and would take a broader role in improving export competitiveness of Mozambican firms than the current relatively narrow focus of IPEX. Following the request from MIC, the Confederation of Mozambican Business Associations (CTA) requested an assessment to review and evaluate the probable impact of that proposal on Mozambican exports, the costs of the new institute, and its probable effectiveness in the light of best practice in trade promotion. On the basis of the assessment, it is unlikely that the new Institute would significantly alter the current trend in Mozambican exports, or address the current barriers which obstruct export growth, specially the supply side problems with export and the wider problem of firm competitiveness. Moreover, many of the proposed actions have been found to be already undertaken by the Investment Promotion Centre (CPI) in Mozambique. Looking at general trends in trade promotion organizations worldwide, it has been seen that no single agency can provide all of the support needed for successful exporting. Instead of investing extra time and resources in establishing a new institute, priority should be on the establishment of a National Trade Development Strategy.

The Mozambican Export Promotion Agency (IPEX) is generally regarded as having been ineffective in promoting export development in Mozambique. For that reason, the Ministry of Industry and Trade (MIC) has requested a second proposal to establish an Institute of External Trade (ICEM) in Mozambique. It was envisioned that ICEM would build on the resources of the existing IPEX, and would take a broader role in improving export competitiveness of Mozambican firms than the current relatively narrow focus of IPEX. Following the request from MIC, the Confederation of Mozambican Business Associations (CTA) requested an assessment to review and evaluate the probable impact of that proposal on Mozambican exports, the costs of the new institute, and its probable effectiveness in the light of best practice in trade promotion. On the basis of the assessment, it is unlikely that the new Institute would significantly alter the current trend in Mozambican exports, or address the current barriers which obstruct export growth, specially the supply side problems with export and the wider problem of firm competitiveness. Moreover, many of the proposed actions have been found to be already undertaken by the Investment Promotion Centre (CPI) in Mozambique. Looking at general trends in trade promotion organizations worldwide, it has been seen that no single agency can provide all of the support needed for successful exporting. Instead of investing extra time and resources in establishing a new institute, priority should be on the establishment of a National Trade Development Strategy.

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