The 2022 Manufacturing Industries Survey reveals that MSMEs in Mozambique are facing significant structural challenges hindering their growth and sustainability. The survey shows a predominance of micro-enterprises and a concerning increase in informality since 2012, particularly affecting companies in Maputo and Gaza. Notably, women-led businesses exhibit better performance attributed to higher educational levels among female managers.
In Mozambique, micro, small, and medium-sized enterprises (MSMEs) within the manufacturing sector are currently facing significant barriers to growth owing to a challenging political, economic and social landscape. The recent Manufacturing Industries Survey (IIM) for 2022 highlights the structural challenges that hinder innovation, expansion, and job creation, which are pivotal for economic advancement and poverty alleviation.
The report indicates that while manufacturing MSMEs are surviving, they are far from thriving. It emphasizes that the manufacturing sector’s disorganization diminishes growth prospects and limits recruitment opportunities. The survey reveals that 75% of MSMEs are micro-enterprises, typically hiring up to 10 employees, while only 5% are medium-sized, employing 51-300, primarily situated in the Maputo region.
Furthermore, the document asserts that stagnation in the manufacturing sector since 2012 persists due to a lack of structural organization and technological advancement. This stagnation poses risks for the sector’s role in economic transformation and job creation. Over the past decade, there has been a notable decline in the size of companies, with micro-enterprises rising from 66% to 75%, coupled with a decrease in small and medium-sized enterprises, especially since 2017 during which many experienced substantial asset write-downs.
The provinces of Gaza and Maputo have been severely impacted, particularly in the food processing and carpentry sectors. This shrinkage has contributed to an increase in informality within the sector, complicating adherence to formal operational standards. The study notes, “Currently, the number of companies that fully meet the formality criteria is decreasing, deepening the economic and regulatory challenges in the country.”
Moreover, the research highlights the positive performance of companies led by women compared to those managed by men. Women managing medium-sized enterprises tend to possess higher education levels on average, which contributes to more efficient and productive management. This finding is a crucial area that has the potential to enhance enterprise efficiency and growth in the sector.
In conclusion, MSMEs in Mozambique are grappling with various structural challenges that stifle their growth and potential. The increase in micro-enterprises and decline in larger firms signify a worrying trend that necessitates urgent attention. However, the report also provides a glimmer of hope through the demonstrated effectiveness of women-led businesses, suggesting that enhanced educational initiatives could yield positive outcomes for the sector’s future.
Original Source: clubofmozambique.com
