Trade Facilitation

Description

According to the World Bank Logistics Performance Index (LPI) (2012), which measures countries’ trade logistics efficiency, Mozambique is ranked 147th out of 160 countries surveyed. The indices of Mozambique on every indicator is particularly unfavourable and below the averages of both the Sub-Saharan Africa region and the low income group. This result is in line with the OECD Trade Facilitation Indicators (2014) and the U.S. Department of State 2013 Investment Climate Statement. The OECD research suggests that Mozambique’s performance for most indicators (including information availability, advance rulings, harmonisation and simplification of documents, automation, and streamlining of procedures) are all below the averages of Sub-Saharan African and lower income countries. The 2013 Investment Climate Statement agrees that the lengthy registration procedures in Mozambique remain problematic for foreign investors. Nevertheless, exporting one standard container of goods is price competitive at USD 1,100, while importing the same container costs USD 1,600, however the time taken is unfavourable, taking 21 days to import and 25 days to export. (Exporting costs of USD 1,100 is close to the average cost of OECD high income countries). The good performance in these particular aspects can be partly attributed  to the country implementing an electronic single-window system in 2013 (World Bank 2014). The country is also planning to introduce an electronic customs and trade facilitation system, and electronic taxing system (Bertelsmann Stiftung 2014).

Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)

Note: World Bank, 2012

Logistics Performance Index – Evolution
Source: World Bank, Logistics Performance Index (LPI)

Note: World Bank, 2012