Mozambique: Insurgents make businessman pay to continue his journey - Cabo Delgado Business Council
O Páis / INE estimates that 30 percent of companies are facing difficulties and have seen a reduction in billing
The unfavorable situation of the non-financial services sector is due to the negative assessment by operators in relation to current activity, exacerbated by the prospect of a reduction in demand leading entrepreneurs to downsize invoicing prospects.
According to the National Statistical Institute (INE), entrepreneur confidence in the non-financial services sector – which encompasses a number of activities, some of which are carried out more frequently in the informal sector of the Mozambican market – dropped in the last three months of last year, prolonging the negative profile noted since the second quarter of 2016.
With the pessimism of entrepreneurs in this sector, the perspective on future performance and turnover is also negative, judging from the current slowdown in demand.
As a result of economic instability, the country has undertaken deep cost cutting measures, reducing households’ purchasing power also thus reducing demand for services in this sector.
The INE estimates that 30 percent of companies surveyed were having difficulty carrying out their normal activities, with significant impact on turnover. These obstacles include competition (which is presumed to be unfair) as well as lower demand and production activity.
The information is included in the INE newsletter evaluating the business environment through a periodic survey of entrepreneurs from various sectors of activity.
About non-financial services
The “Other Services” sector covers consulting, accounting and auditing activities; legal assistance; surveillance and security; rental and real estate activities; communication and information technologies; travel and tourism agency, private human and animal health clinics, private day care centres; technical, higher and professional private education; customs clearance; social, collective, cultural, sporting and artistic services, among others not specified but profit-orientated.
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