Riots have cost 17,000 jobs

Maputo, 21 Feb (AIM) – The President of the Mozambican Confederation of Business Associations (CTA), Agostinho Vuma, said on Thursday that the post-election riots have caused economic losses “totalling 32.2 billion meticais (over 500 million US dollars) and the loss of 17,000 jobs.”

Speaking during the CTA’s quarterly Economic Briefing in Maputo, Vuma explained that 56% of these losses resulted from looting and vandalism, while the remaining 44% stemmed from a decline in demand for goods and services.

“A total of 260 businesses were directly affected in the first three phases of unrest, and 695 companies in the last phase in December, bringing the total to 955,” Vuma stated. “Of these businesses, around 51% suffered total vandalism and/or looting of their goods.”

The CTA reported that its preliminary assessment of the first three phases of protests found that the trade sector was the most affected, with total losses amounting to 24.8 billion meticais, equivalent to approximately 2.2% of GDP. These figures will now be much higher since the looting was at its worst in late December.

The CTA is calling on the government to implement concrete measures to protect business owners from the threats of vandalism, destruction, and looting of their properties, while ensuring the free movement of goods and the security of their workers.

Additionally, business leaders are requesting tax relief and exemptions on imported essential goods.
Economy Minister Basílio Muhate, who was participating in this quarterly event for the first time, assured businesses that the government is committed to creating a favourable environment for Micro, Small, and Medium-Sized Enterprises (MSMEs), promoting policies and mechanisms that facilitate access to credit, reduce red tape in business registration and formalisation, and encourage digitalisation.
(AIM)
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