Mozambique: Economy shrank almost 4%% in the first quarter, 6% in Q4 of last year - INE
Adjustment of Mozambican minimum wage may be compromised, warns Business Federation
11:46 CAT | 26 Feb 2016
The CTA business organization has warned that the current combination of natural disasters, political and military tension and the devaluation of the metical may affect the country’s economy and influence the adjustment of the national minimum wage.
The warning was issued by the vice president of the CTA (Confederation of Business Associations of Mozambqiue), Rui Monteiro, at the end of the first Labour Consultative Commission session, which took stock of 2015 economic and social performance as a basis for the adjustment of the minimum wage in Mozambique.
Monteiro said current political and military tension might affect tourism, and the natural disasters economic growth. Monteiro added that in 2015 Mozambique faced problems due to international variables, which could worsen in 2015. The national minimum wage is adjusted annually with effect from 1 April.
The devaluation of the metical has changed the picture, with the cost of goods and services rising and the purchasing power of the majority of Mozambicans dropping dramatically. This is exacerbating poverty, said Helena Ferro of the Mozambique Workers’ Organization.
Source: CTA Newsletter , February 24 2016
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