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Mozambique’s Digital Entrepreneurship Stunted by Lack of Access to Finance and Information
Maputo, Mozambique - Despite progress in reducing registration times, procedures, and costs for startups, significant barriers continue to hinder the growth of digital entrepreneurship in Mozambique. According to a recent diagnostic report, access to finance is the biggest obstacle faced by firms, followed closely by corruption.
Challenges Faced by Digital Startups
The report highlights that Mozambican startups also struggle with:
- Information asymmetries
- Lack of a framework that acknowledges the distinct nature of digital startups
- Absence of a champion in government leading the entrepreneurship agenda
Recommendations for Addressing the Challenges
Experts recommend a holistic approach to digital economy development, involving policy reforms, investment in digital infrastructure, and strengthening capacity. The report identifies 18 high-priority recommendations across pillars, including:
High-Priority Recommendations
- Increasing access to markets
- Boosting firm and job creation
- Improving quality and efficiency of services
Education System Needs Improvement
One key area for improvement is the country’s education system, which has one of the lowest literacy rates in the world. “Ensuring that every person has the appropriate skills for an ever-growing digital and globalized world is essential to promote inclusive labor markets and innovation,” said a report author.
Accelerating Digital Transformation
To accelerate Mozambique’s digital transformation, policymakers must:
- Prioritize investment in digital skills training programs
- Develop digital infrastructure
- Support entrepreneurship services
- Establish a champion to lead the entrepreneurship agenda
- Create a favorable business environment that fosters innovation and job creation
Increasing Access to Markets for SMEs
The report also emphasizes the importance of increasing access to markets for small and medium-sized enterprises (SMEs) and promoting e-commerce platforms to enable local businesses to sell their products online.
“With a coordinated approach, Mozambique can unlock its digital potential and become a hub for innovation and entrepreneurship in Africa,” said [report author].
Full Report Available
The full report is available at [link].
Recommendations
- Strengthen technical and operational capacity to undertake effective implementation of plans and programs.
- Develop and update policy and legal frameworks that enable an environment of trust, competition, and inclusion.
- Build the soft and hard infrastructure that supports digital transformation.
- Increase access to markets for SMEs through e-commerce platforms.
- Promote entrepreneurship support services and incubators nationwide.
- Strengthen education system to provide digital skills training programs.
Priorities
- Increase Access to Markets
- Boost Firm and Job Creation
- Improve Quality and Efficiency of Services