DAI
The agricultural sector in Mozambique plays a significant role in the country's economy, accounting for 70% of the active population and contributing 24% to the country's GDP, valued at approximately $12.79 billion (CEPAGRI, 2012).
2013 · 73 pages

Abstract
However, the sector's weight in the GDP has been decreasing, with the industry and services sectors projected to contribute more than 70% of the country's wealth in the short term. Despite this trend, more than 70% of the population still relies on agriculture as a source of employment. The incentives and business environment are not conducive to agricultural development. The private sector in agro-business and agro-processing expresses dissatisfaction with the current package of incentives, including a 50% reduction in the tax on gasoline, a 10% reduced tax on corporate income tax (IRPC), and exemption from paying value-added tax (IVA) on the internal transmission of goods and services in the agricultural, forestry, and livestock sectors, including agricultural inputs and equipment. Additionally, the private sector claims that the incentives in this sector of agriculture are not comparable to those granted to the extractive industry. They believe that if the same incentives were given to the agricultural sector, the situation of low agricultural competitiveness and food insecurity would be resolved in Mozambique. The Confederation of Economic Associations of Mozambique (CTA) requested the USAID|SPEED to conduct this study, which complements two previous studies on taxation in agriculture and IVA in agriculture, which revealed the existence of fiscal barriers to access to incentives and the market. This is exacerbated by the existence of a significant structural distortion in the agricultural economy created, among other things, by non-fiscal barriers (BNF) to the development and competitiveness of the sector in Mozambique. The study aims to identify and analyze the non-fiscal barriers to the development of the agricultural sector in Mozambique, with a focus on the impact of these barriers on the sector's competitiveness and food security. The study will also provide recommendations for the removal or reduction of these barriers, with the goal of promoting the development of the agricultural sector and improving the country's food security. The study will focus on the following non-fiscal barriers: transportation costs, storage costs, marketing costs, and regulatory barriers. The study will also examine the impact of these barriers on the sector's competitiveness and food security, as well as the potential benefits of removing or reducing these barriers. The study will use a combination of quantitative and qualitative methods, including surveys, interviews, and analysis of secondary data. The study will also involve the participation of stakeholders from the public and private sectors, as well as civil society organizations. The study's findings and recommendations will be presented in a report that will be submitted to the CTA and other stakeholders. The report will provide a comprehensive analysis of the non-fiscal barriers to the development of the agricultural sector in Mozambique and will offer recommendations for the removal or reduction of these barriers. The study's conclusions and recommendations will be based on the analysis of the data and the participation of stakeholders. The study will also provide a framework for the implementation of the recommendations, including the identification of the responsible institutions and the timeline for implementation. The study's findings and recommendations will be disseminated through various channels, including reports, publications, and presentations. The study will also provide a platform for the discussion and debate of the issues related to the non-fiscal barriers to the development of the agricultural sector in Mozambique. The study's
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USAID DEC