Graft a major threat to Moz

MAPUTO – Red tape, archaic laws and corruption are seen as major threats to Mozambique’s reform agenda, which has won the country stable economic growth and acclaim from international lenders, analysts said this week.

The former Portuguese colony, which emerged from civil war and ditched Marxism in 1992, has implemented stringent reforms advocated by the International Monetary Fund, World Bank and bilateral lenders, helping put it on a path of stable economic expansion. But analysts say a growth average of eight per cent annually over the past decade has yet to deliver a solution for poverty, and further reforms and investment were required to bolster this southern African country of 18 million people.The high cost of doing business, especially for small and medium-sized companies, excessive red tape, graft and lack of adequate infrastructure still muddle the business environment, said Jose Caldeira, deputy chief of the Mozambique Law Society.”Civil servants successfully demand money from people who want speed and results in the delivery of services.It’s too slow and expensive to do business here,” Caldeira said.Analysts said an ineffective judiciary, which took years to resolve simple business disputes, harmed the investment climate.President Armando Guebuza, sworn into office in February after winning presidential elections late last year, has put improving civil servants’ attitudes, fighting graft and reforming the cumbersome legal system on top of his agenda.Analysts say he must start with changes to the commercial law, modelled on an 1888 piece of legislation from Portugal, and reduce bottlenecks that slow registration of new companies and require many permits before a business can open.”All of these things hamper the growth of the private sector in Mozambique,” Anton Johnston, coordinator of the so-called Group of 17, which comprises Mozambique’s main foreign lenders.A government-commissioned survey this year showed that Mozambicans believed corruption and bad governance were serious problems while drug traffickers, multinational companies and politicians had a huge influence on government affairs.The survey found police and customs were the most corrupt.It said only the poor and weak were subject to law enforcement while the wealthy trampled on the law with impunity.”It is very unfortunate when people perceive the courts and police as being corrupt in a country trying to fight graft,” Johnston said.”This is a challenge Mozambique must tackle if the economy is to retain a strong growth trajectory.”Lucas Chomera, minister for state administration, said the government would launch “profound changes in the public administration” to improve service quality.New legislation for commerce, labour, accountability for public finances, and criminal procedures would be submitted to parliament for debate and possible enactment in the coming weeks, Chomera said.The government was also re-working its anti-graft strategy and an anti-corruption law was mooted, the minister said.Mozambique is one of the beneficiaries of a decision by wealthy nations to offer debt relief and increase aid to developing nations, many of them in Africa, and has earmarked the cash for investment in infrastructure.- Nampa-ReutersBut analysts say a growth average of eight per cent annually over the past decade has yet to deliver a solution for poverty, and further reforms and investment were required to bolster this southern African country of 18 million people.The high cost of doing business, especially for small and medium-sized companies, excessive red tape, graft and lack of adequate infrastructure still muddle the business environment, said Jose Caldeira, deputy chief of the Mozambique Law Society.”Civil servants successfully demand money from people who want speed and results in the delivery of services.It’s too slow and expensive to do business here,” Caldeira said.Analysts said an ineffective judiciary, which took years to resolve simple business disputes, harmed the investment climate.President Armando Guebuza, sworn into office in February after winning presidential elections late last year, has put improving civil servants’ attitudes, fighting graft and reforming the cumbersome legal system on top of his agenda.Analysts say he must start with changes to the commercial law, modelled on an 1888 piece of legislation from Portugal, and reduce bottlenecks that slow registration of new companies and require many permits before a business can open.”All of these things hamper the growth of the private sector in Mozambique,” Anton Johnston, coordinator of the so-called Group of 17, which comprises Mozambique’s main foreign lenders.A government-commissioned survey this year showed that Mozambicans believed corruption and bad governance were serious problems while drug traffickers, multinational companies and politicians had a huge influence on government affairs.The survey found police and customs were the most corrupt.It said only the poor and weak were subject to law enforcement while the wealthy trampled on the law with impunity.”It is very unfortunate when people perceive the courts and police as being corrupt in a country trying to fight graft,” Johnston said.”This is a challenge Mozambique must tackle if the economy is to retain a strong growth trajectory.”Lucas Chomera, minister for state administration, said the government would launch “profound changes in the public administration” to improve service quality.New legislation for commerce, labour, accountability for public finances, and criminal procedures would be submitted to parliament for debate and possible enactment in the coming weeks, Chomera said.The government was also re-working its anti-graft strategy and an anti-corruption law was mooted, the minister said.Mozambique is one of the beneficiaries of a decision by wealthy nations to offer debt relief and increase aid to developing nations, many of them in Africa, and has earmarked the cash for investment in infrastructure.- Nampa-Reuters