How to address regional and sector-specific regulatory issues? A case study from Mozambique

Friedrich Kaufmann; Matthias Krause

doi:10.3362/1755-1986.2008.020

How to address regional and sector-specific regulatory issues? A case study from Mozambique

This article discusses empirical results from a business climate survey (BCS) and from value chain analyses for Mozambique and draws conclusions for practical policy advice. The analysis of the data shows that the business and investment climate (BIC) differs markedly between regions and sectors. It is argued that tools relying exclusively on national approaches for assessing the BIC, such as the World Bank Doing Business surveys, are not able to capture this heterogeneity and therefore have to be complemented by BCSs or value chain analyses in order to provide relevant and specific guidance for BIC reforms. Moreover, the article discusses the usefulness of BCSs as tools for creating ownership and leverage in policy advocacy.

Altenburg, T. (2007) Donor Approaches for Supporting Pro-poor Value Chains, The Donor Committee for Enterprise Development, Washington D.C.

Commonwealth Business Council (2007) Business Environment Survey 2007, CBC, London.

Djankov, S., La Porta, R., Lopez de Silanes, F. and Shleifer, A. (2001) The Regulation of Entry, Policy Research Working Paper 2661, World Bank, Washington DC.

FIAS (Foreign Investment Advisory Facility) (2006) The Tourism Sector in Mozambique: A Value Chain Analysis, Vol I, World Bank, Washington DC.

FIAS (2007) Moving Towards Competitiveness. A Value-Chain Approach, World Bank, Washington DC

GDS (Global Development Solutions) (2005) Value Chain Analysis for Strategic Sectors in Mozambique, PODE, Maputo

GTZ, APSP, KPMG and CTA (2007) Mozambique Business Climate Survey 2006 (authored by M. Wirtz and R. Lanwehr), http://www.tipmoz.com (accessed 12 June 2008). http://www.tipmoz.com

Herzberg, B. and Wright, A. (2006) The PPD Handbook, World Bank, Washington DC.

Kaufmann, F. (2005) ‘Enabling environment for the private sector - GTZ program: Economic Reform and Market Systems Development in Mozambique’, in GTZ (ed) Promoting the Business and Investment Climate, GTZ. Eschborn.

Kaufmann, F., Madlung, Ph., Spatz, J. and Wegmann, M. (2007) ‘A participatory multi-level approach of using business climate surveys in regulatory and administrative reform processes: Experiences from Ghana, Mozambique and South Africa’, Reforming the Business Environment, Conference Papers, Accra, November.

KPMG (2006) ‘Índice do Ambiente de Negócios em Moçambique: II Trimestre de 2006, N 19’ KPMG,, Maputo, http://www.kpmg.co.mz/en/destaques/ndice_do_ambiente_de_neg_cios (accessed 12 June 2008). http://www.kpmg.co.mz/en/destaques/ndice_do_ambiente_de_neg_cios

Krause, M., Ackermann., M. Hirtbach, C., Koppa, M., Bretas, L. S. and Traub, L. (2008) ‘Business development in mozambique: What is the role of the regulatory business environment in supporting formalisation and development of micro, small and medium enterprises?’, Draft Report, DIE, Bonn.

MIC (Ministério da Industria e Comercio) (2007) Avaliação do ambiente de negócios para as PMEs em Moçambique, in: Pequenas e Medias Empresas em Moçambique, MIC, Maputo.

República de Moçambique (2008) Estratégia de Melhoria do Ambiente de Negócios em Moçambique, República de Moçambique, Maputo.

Rücker, A. and Trah, G. (2007) Local and Regional Economic Development, GTZ, Eschborn.

UNCTAD (United Nations Conference on Trade and Development) (2006) Investment Policy Review Rwanda, United Nations, New York and Geneva.

Wirtz, M. (2008) ‘Using the business climate index as a tool for monitoring and evaluating business investment climate in Mozambique: A systematic comparison between the provinces Inhambane, Sofala and Manica’, Version 3, January, unpublished manuscript.

World Bank (2003) Mozambique Industrial and Investment Climate 2003, World Bank, Washington DC