Delays in payment of State invoices harm small and medium enterprises

Maputo, 5 Jun (AIM) – Mozambique’s Confederation of Business Associations (CTA) has warned that the delays in the payment of State invoices continue to harm the stability of small and medium-sized enterprises (SMEs).

After participating in consultation session promoted by the Ministry of Finance, representatives of CTA explained that SMEs face serious difficulties in cash flow and access to credit and maintaining jobs.

“The Strategy for Payment of State Debt to Suppliers should include mechanisms that recognize the financial costs borne by suppliers over the years, as well as guarantee transparent debt validation processes and greater predictability in the execution of payments”, reads the statement.

Among the recommendations presented during the meeting, it was highlighted the need to create a permanent budget line in the State Budget for the settlement of arrears, together with stronger compliance with budget commitment rules and the adoption of mechanisms to prevent the accumulation of new debts.

CTA also proposed holding a national workshop to broaden the consultation process with businesspeople, allowing the strategy to benefit from more comprehensive contributions.

The meeting, which aimed at debating the Strategy for Payment of State Debt to Suppliers, also proposed the gradual settlement of liabilities accumulated between 2007 and 2025, in a process that could run from 2027 to 2031.

“The plan combines direct payments and debt securitization mechanisms through Treasury Bonds”, reads the note.

Am/