Business sector calls for rehabilitation of the N1, Mozambique’s main highway

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Business sector calls for rehabilitation of the N1, Mozambique’s main highway

8:17 CAT | 12 Feb 2025

FILE - For illustration purposes only. [File photo: O País]

The Confederation of Economic Associations (CTA), which represents the Mozambican private sector, asked the government to comprehensively rehabilitate National Highway number 1 (N1), as part of efforts to help businesses recover after the post-election crisis.

At the end of a meeting between the private sector and the government, CTA Communication and Services department president Paulo Oliveira said that the confederation had presented a set of measures so that “some burdens, some taxes, and real proposals can be made so that the (…) economy [can] develop, namely the requalification of National Road 1, which is very important”.

“It is our backbone,” Oliveira declared.

The Mozambican Ministry of Economy held a meeting with businesspeople on Monday to present to the private sector the measures being taken to ensure a “healthy business environment” following the post-election protests.

“We raised other concerns, namely fuel taxes, and we also talked about the issue of tolls, and about finding models that are more sustainable and comfortable for all users,” added Paulo Oliveira.

READ: Mozambique: Minister of Economy meets with CTA, business representatives – photos

In March 2023, the Mozambican government announced the start of the first phase of rehabilitation works on National Road 1 (N1) by the end of that year, with financing of around US$400 million (€375 million) that the World Bank approved in August for the first phase.

The World Bank previously approved total financing of US$850 million (€797 million), almost half of which will be applied to the first phase.

In December, the CTA estimated to Lusa that more than 500 companies were vandalized during the protests post-election and at least 12,000 people became unemployed.

Mozambique has been experiencing a climate of social unrest since October of last year, with demonstrations and strikes called, at first, by former presidential candidate Venâncio Mondlane, who rejects the election results that gave victory to the Mozambique Liberation Front (Frelimo) candidate, Daniel Chapo.

Smaller-scale protests are still taking place in different parts of the country with people, in addition to contesting the October 9 election results, protesting the rising cost of living and other social problems.

Since October, at least 327 people have died, including around two dozen minors, and around 750 have been shot during the protests, according to the electoral platform Decide, a non-governmental organization that monitors electoral processes in Mozambique.