Cost of Compliance in Agriculture

27 Jun, 2016 – 8:27 am

Despite an abundance of arable land, an adequate supply of manpower, and generally good access to water resources (notwithstanding  droughts in portions of the country), recent levels of new agribusiness investment  in Mozambique have been disappointing. Based on interviews with a wide range of agribusiness companies in Mozambique, and drawing on survey data recently collected by the Grow Africa/New Alliance group on agribusiness companies which have signed letters of intent with the Government of Mozambique to undertake or increase their investments in the country, this report itemizes a series of constraints which have contributed to this investment under-performance in the agribusiness sector. This constraint analysis covers ground which will be familiar to students of agribusiness in Mozambique; advocacy groups such as CTA, ACIS and the Business Advisory Working Group have been working for several years now to reduce the impact of these constraints on the conduct of daily business. In several cases, including land and regulatory issues, meaningful progress has been made in reducing the administrative complexities of the process, although further improvement remains needed.  In other cases, however, such as tax treatment and access to finance, there have been few positive developments.

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