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Liberalization of Mozambique’s Aviation Policy

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1. Introduction

Mozambique’s export growth is hindered by long distances from tourist-generating centers and by low air-traffic density that causes high air-fares. Protectionist aviation policies severely constrain the development of tourism as well as businesses, including those related to high-value added agriculture and just-in-time manufacturing.

This protectionism, for example, pulls customers from the entire travel and tourism chain—from hotels, resorts, car rentals, computer reservations systems, entertainment, and cultural attractions. Further liberalizing air transport will do more to increase receipts from hotels and other tourist and business activities than the income of the national airline. A more liberalized air transport sector will give Mozambique’s products greater access to international markets, reduce the cost of doing business in and with Mozambique, and improve the business enabling environment in general. It will also attract more tourists, which, in turn, will create more jobs and more exports.

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