Mozambique has taken a significant step toward economic revitalization by scrapping prior licensing and inspection requirements for more than 80 business activities. The reform, unveiled by Prime Minister Benvinda Levi in Parliament on May 29, is part of a broader strategy to encourage the formalization of micro, small, and medium-sized enterprises (MSMEs) and stimulate grassroots entrepreneurship. The policy shift is expected to remove longstanding bureaucratic hurdles that have discouraged small businesses from operating within the formal economy.
This deregulatory move comes at a critical time, following the economic slump triggered by violent protests after the October 2024 elections, which led to a 4.9% contraction in GDP in the final quarter of that year. Addressing lawmakers during a Questions to the Government session, Prime Minister Levi said the government’s focus is now on accelerating economic recovery through practical tools—chief among them, removing red tape and improving access to finance for MSMEs. She also highlighted a US$4.6 million Fund for Economic Recovery (FRE) and an upcoming credit facility of 10 billion meticais in collaboration with the Mozambican Banking Association.
By simplifying tax structures and offering subsidized interest rates, the government aims not only to support struggling businesses but also to expand job opportunities and broaden its tax base. The reforms are underpinned by the belief that economic inclusivity, particularly for informal and rural enterprises, is key to long-term growth. As consultations with parliament continue, Levi reaffirmed the government’s commitment to implementing a robust mix of fiscal and non-fiscal interventions to rebuild investor confidence and reignite the country’s entrepreneurial spirit.