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Mozambique Country Profile |
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Snapshot of the Mozambique Country ProfileAlthough the general investment climate in Mozambique has improved significantly over the last several years, with economic growth rates among the highest in Africa, political stability and government promotion of foreign direct investment, corruption remains a serious problem for foreign investors. In fact, most observers agree that corruption is one of the main constraints for doing business in Mozambique.
Positive developments in relation to corruption and investment:
- The Investment Promotion Center (CPI) has been established by government as a one-stop shop for investors and has reportedly helped to improve the regulatory environment.
- Much work has been done in the field of modernising, increasing efficiency and improving the integrity of Mozambique's customs administration. Reportedly the efforts have reduced the magnitude of corruption in the sector, although the level of corruption remains high.
Risks of corruption:
- According to several sources, public procurement is an area of business activity where foreign companies are very likely to encounter corruption.
- Companies rank the police in general and traffic police in particular as the least honest institutions in Mozambique's public sector.
- Access to land is a major problem for companies in Mozambique, and applications related to land are often treated by public officials as opportunities to demand bribes.
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