Mozambique may have lost over 388 million dollars as result of demonstrations

Maputo, 13 Nov (AIM) – The chairperson of the Mozambican Confederation of Business Associations (CTA), Agostinho Vuma, claims that the impact of last week’s demonstrations against the allegedly fraudulent results of the 9 October general elections is around 24.8 billion meticais (388.1 million dollars at the current exchange rate).

According to Vuma, who was speaking to reporters on Tuesday, in Maputo, in order to minimize the crisis the government must introduce exemptions from Value Added Tax (VAT) for products included in the basic food basket, such as cooking oil, soap, sugar, chicken and eggs.

“At the tax level, we propose removing VAT on oils, soaps, sugar, chickens and eggs, which are basic products mainly for the poor population”, he said.

The CTA proposal, he added, includes exemption from the payment of charges “such as fines, interest and tax execution fees, resulting from late payment of tax obligations.”

“Another proposal is to simplify and make more flexible post-clearance customs audits at the main borders and ports”, he added.

According to Vuma, in terms of monetary policy, the government must continue introducing lower interest rates, taking into account the agriculture sector.

“It also must reduce the compulsory reserves coefficient from 39 percent to 20 per cent in meticais and five per cent in US dollars”, he added.

The CTA also proposes the relaxation of expired documentation deadlines – such as for visas and authorizations – at institutions like the National Migration Service (SENAMI), “as well as the reinforcement of security for public and private property and the creation of security corridors along the main roads, in order to ensure the transport of goods and people in the main commercial hubs.”

At the same time, the businesses are calling for dialogue between the parties involved in the demonstrations and the government as a way of ensuring a swift return to socio-political stability, “which is a crucial condition for the continuation of the country’s business sector.”
(AIM)
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