Region: Sub-Saharan Africa
Income category: Low income
Population: 19,792,295
GNI per capita (US$): 310.00


Ease of...

2006 rank

2005 rank

Change in rank

Doing Business

140

137

-3

Starting a Business

153

156

3

Dealing with Licenses

103

106

3

Employing Workers

157

156

-1

Registering Property

105

96

-9

Getting Credit

83

76

-7

Protecting Investors

83

81

-2

Paying Taxes

80

78

-2

Trading Across Borders

141

137

-4

Enforcing Contracts

168

168

0

Closing a Business

126

125

-1

Starting a Business (2006)

The challenges of launching a business in are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

Indicator

Mozambique

Region

Procedures (number)

13

11.1

Time (days)

113

61.8

Cost (% of income per capita)

85.7

162.8

Min. capital (% of income per capita)

10.4

209.9

Dealing with Licenses (2006)

Shown below are the procedures, time, and costs to build a warehouse in , including obtaining necessary licenses and permits, completing required notifications and inspections, and obtaining utility connections.

Indicator

Mozambique

Region

Procedures (number)

13

17.7

Time (days)

364

230.2

Cost (% of income per capita)

279.3

1,024.50

Employing Workers (2006)

The difficulties that employers in face in hiring and firing workers are shown below. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The Rigidity of Employment Index is an average of the three indices.

Indicator

Mozambique

Region

Difficulty of Hiring Index

83

44.3

Rigidity of Hours Index

60

52

Difficulty of Firing Index

20

44.9

Rigidity of Employment Index

54

47.1

Hiring cost (% of salary)

4

12.7

Firing costs (weeks of wages)

142.9

71.2

Registering Property (2006)

The ease with which businesses in can secure rights to property is shown below. Included are the number of steps, time, and cost involved in registering property.

Indicator

Mozambique

Region

Procedures (number)

8

7

Time (days)

42

109.9

Cost (% of property value)

5.4

11.6

Getting Credit (2006)

Measures on credit information sharing and the legal rights of borrowers and lenders in Mozambique are shown below. The Legal Rights Index ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. It ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau.

Indicator

Mozambique

Region

Legal Rights Index

4

4.2

Credit Information Index

3

1.3

Public registry coverage (% adults)

0.7

1.5

Private bureau coverage (% adults)

0

3.8

Protecting Investors (2006)

The indicators below describe three dimensions of investor protection: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholders’ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) and Strength of Investor Protection Index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection.

Indicator

Mozambique

Region

OECD

Disclosure Index

7

4.4

6.3

Director Liability Index

2

4.5

5

Shareholder Suits Index

6

5.2

6.6

Investor Protection Index

5

4.7

6

Paying Taxes (2006)

The data below shows the tax that a medium-size company in must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes.

Indicator

Mozambique

Region

Payments (number)

36

40.9

Time (hours)

230

336.4

Total tax rate (% profit)

39.2

71.2

Trading Across Borders (2006)

The costs and procedures involved in importing and exporting a standardized shipment of goods in Mozambique are detailed under this topic. Every official procedure involved is recorded - starting from the final contractual agreement between the two parties, and ending with the delivery of the goods.

Indicator

Mozambique

Region

Documents for export (number)

6

8.2

Time for export (days)

39

40

Cost to export (US$ per container)

1,516

1,561

Documents for import (number)

16

12.2

Time for import (days)

38

51.5

Cost to import (US$ per container)

1,616

1,947

Enforcing Contracts (2006)

The ease or difficulty of enforcing commercial contracts in is measured below. This is determined by following the evolution of a payment dispute and tracking the time, cost, and number of procedures involved from the moment a plaintiff files the lawsuit until actual payment.

Indicator

Mozambique

Region

Procedures (number)

38

38.1

Time (days)

1,010

581.1

Cost (% of debt)

132.1

42.2

Closing a Business (2006)

The time and cost required to resolve bankruptcies in is shown below. The data identifies weaknesses in existing bankruptcy law and the main procedural and administrative bottlenecks in the bankruptcy process. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm, is also shown.

Indicator

Mozambique

Region

Time (years)

5

2.6

Cost (% of estate)

9

16

Recovery rate (cents on the dollar)

15

17.7