Mozambique's corruption, red tape hinder growth

Corruption and red tape are main challenges to Mozambique's economic development

Corruption and red tape are main challenges to Mozambique's economic development, a senior European Commission official said in Maputo today. Glauco Calzuola, the head of the European Commission in Mozambique told AFP in an interview that while the government needed to do much to curb practices of crooked government officials.

Corruption is a serious problem in the country and it can be a serious obstacle to economic development of the country, he said in an interview on the margins of the launch of the African Economic Outlook report launched by the African Development Bank. Red tape was affecting investment in the country and this was also raised in the report.

Mozambique continues to occupy a low ranking in the International Finance Corporation's annual Doing Business report comparing the business environment in 178 economies, said the ADB report. However the report said Mozambique managed to transform from 140th position in 2007 to 134 position in 2008. The report also noted that the improvement in the country's physical infrastructure would contribute to economic growth.

Mozambique's real Gross Domestic Product (GDP) in 2007 dropped to 7.2% from 8% in 2006; The report noted the down turn in the country's economy was triggered by an increase in oil prices and a drop in the volume of traditional exports. It also noted that while the government pinned a lot of hope on the growth of the agriculture industry there was not much hope for the sector.

But the outlook for success in raising agricultural output is uncertain. Although the start of the 2007/08 agriculture season was characterised by satisfactory rains, farmers were short of seeds of seeds particularly in the south (of the country), said the report. The African Economic report draws upon the expertise of the African Development Bank, the United Nations Economic Commission for Africa and the Organisation for Economic Co-operation and Development.

The reports gives an analysis of the performance of African economies and in the 2008 edition launched in Maputo on Sunday the main focus was on technical and vocational development. - Sapa