CTA proposes privatization of state assets to overcome Mozambican crisis
Notícias (From left to right) / Minister of Trade and Commerce Max Tonela, Prime minister Carlso Agostinha do Rosario, head of CTA Rogerio Manuel
Confederation of Economic Associations of Mozambique president Rogerio Manuel has proposed that the state alleviates the burden on the treasury by privatizing state assets.
“The Government has several non-producing assets whose transmission to the private sector would alleviate the burden on the treasury and help minimize the country’s socio-economic development problems,” Manuel said.
Rogério Manuel was speaking in Maputo on Friday at the third business environment monitoring council meeting, convened to assess the implementation of the 28 reforms agreed between the government and the private sector.
The CTA president noted that the meeting was taking place at a very troubled time for the national economy.
“More than ever, the world economic situation, whose effects on the domestic market are plain to see, demands serious consideration of the measures to be adopted to tackle the effects of this unprecedented crisis,” he said.
As to specifics, Manuel highlighted the agricultural sector, whose 2016 Economic and Social Plan 6.5 percent growth target looks unlikely to be met, and which the CTA estimates, taking into account the effects of drought and losses in the first growing season, will grow less than 5 percent.
To minimize impacts on the agricultural sector, Manuel urged “dynamic and fruitful” dialogue between stakeholders in the production chain, including the private sector, and recommended that “the government and the productive sector take concerted and focused action for the second agricultural season”.
Looking further, the president of CTA addressed the issue of the balance of payments, stating that “the priority should be to produce food and fuel which together total annual imports of one billion dollars”.
At the meeting, the government, represented by the Ministry of Industry and Trade, presented a table containing 22 priority points, while the CTA gave a presented a proposal detailing six priorities for reform of the private sector’s responsibilities.
The meeting also inaugurated the second evaluation of the reforms to be implemented by the parties in the period August 2015 to July 2016.
The council’s closing speech was given by the prime minister, Agostinho do Rosario, who invited the private sector to reflect on the need to increase the production base and promote development to improve living standards.
“In this context, the government continues to adopt legislation and reforms to improve the country’s business environment,” he said.
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