Mozambique: Business conditions worsen in November - Standard Bank PMI
File photo / Ministry of Finance of Mozambique in Maputo
Mozambique’s private sector body, the Confederation of Economic Associations of Mozambique (CTA), is expressing concern over delays in the payment of invoices for goods and services supplied to the state.
Luis Sitoe, executive director of CTA, said at a press conference on Tuesday in Maputo that some companies had complained that the government had suspended state Financial Management System (SISTAFE) payments pending approval by parliament of the amending budget.
“Companies supplying goods and services to the state are complaining about delays. We recently learned that SISTAFE had been shut down to allow the budget review to go ahead, and that this had affected government payments. We hope that this part at least is now resolved and that the government already knows what its position is in relation to the budget,” he said.
Sitoe, who was speaking at a press conference during the 14th Private Sector Annual Conference (CASP), said that the companies involved were committed to complying with the terms of their contracts with the state.
Asked about the impact on business of the government’s recently announced austerity measures, Sitoe quoted to the effect that “against the facts there are no arguments”.
“We all realize that the country has no way of maintaining the levels of expenditure planned at the beginning of the year under conditions in which there is no regular flow of funds into the economy.
“We have reports of companies closing their doors because of the crisis, and there are regions where the monthly average is as high as ten. For example, companies that positioned themselves in the north of the country to serve the major natural resource projects in Cabo Delgado and Tete,” he said.
Concerning the private sector conference, taking place this year under the theme “The Challenges of Domestic Production in Current Situation and Prospects,” Sitoe said that the event would attract some 700 individuals, both domestic and foreign.
“Right now, Mozambique needs to find ways of increasing productivity and domestic production. The 14th CASP will bring issues and national and international speakers together to help us meet this challenge,” he said.
Sitoe said that the experiences of Mauritius in the diversification of its economy, Nigeria’s experiences in agricultural production and productivity and China’s industrialization were all noteworthy in this context, and would be presented at the conference.
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