Financial Sector Constraints on Private Development in Mozambique

In this paper we examine financing constraints on the development of Mozambique's domestic private sector, focusing primarily on the high cost and low availability of credit. We include a detailed review of the legal and judicial foundations for financial sector development, and controversial banking regulations relating to foreign exchange lending and international payments. Our analysis leads to more than 60 recommendations for overcoming financial constraints in order to improve Mozambique's climate for investment, trade, job creation, and growth.

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