Listen: More than 800 Mozambican companies report losses due to Covid-19

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Listen: More than 800 Mozambican companies report losses due to Covid-19

2:50 CAT | 11 Jun 2020

Ministry of Labour in Maputo. [File photo: Voa Portugues]

More than 800 Mozambican companies have reported losses to the government and at least 39,000 workers have been laid off as a result of measures against the new coronavirus.

“We have 823 companies with suspension of employment contracts, 144 on collective vacations, 18 with permanent closure, 96 in the rotation system, 16 in telework and 25 with reduced workforce,” Minister of Labour Margarida Talapa revealed.

Talapa said that workers with suspended contracts would be paid in accordance with Article 123 of the Labour Law, which “provides for payment of wages at 75% in the first month; 50% in the second and 25% in the third”.

“Our big concern is what will happen after the third month,” Talapa said.

Chivambo Mamadhusen, head of the Mozambique Confederation of Economic Associations mineral resources, hydrocarbons and energy desk, says the situation in the extractive industry sector is worrying.

“So far, 32% of the companies associated with the extractive industries have registered a reduction in turnover of 100% and are technically bankrupt, while 59% of them have seen a 50% reduction,” Mamadhusen reported.

In such a scenario, economist Caldas Chemane says, the government must adopt clear measures, perhaps including food support for the workers affected.

Source: Voa Portugues