Covid-19: Mozambican business sector asks for 50% reduction in electricity rate

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Covid-19: Mozambican business sector asks for 50% reduction in electricity rate

2:10 CAT | 29 May 2020

File photo: .ewynza.co.mz

The Confederation of Economic Associations (CTA), Mozambique’s largest employer association, is negotiating a 50% reduction in the price of energy with state-owned company Mozambique Electricity (EDM), as part of measures to face the Covid-19 pandemic, it was announced on Thursday.

“We are in talks with EDM for more discounts, and in principle are asking for a 50% discount,” the vice president of CTA’s Energy department told a press conference in Maputo, the country’s capital.

Last week, the Mozambican government announced a general discount on energy prices of 10%, for the duration of the state of emergency in effect since April 1.

Speaking in parliament yesterday, the Minister of Economy and Finance, Adriano Maleiane, announced a 50% reduction in the social electricity tariff for the just over 3,000 EDM customers considered the most vulnerable, and who consume up to 125 kWh, mainly in the most remote areas.

The CTA believes that the 10% general discount announced last week does not help entrepreneurs, who are already recording large losses because of Covid-19 counter-measures.

According to Muni Sacur, attention should be directed especially to the industry and hospitality sectors, among the worst affected by the crisis.

The businessman appealed to EDM to reduce the tariff for a period of six months, to help support the “expenses with the personnel”. “We have to safeguard our brothers’ jobs, because we don’t want to close companies,” Sacur added.

Mozambique, which has been in a state of emergency since April 1 and by the end of this month, has recorded a total of 233 cases of the new coronavirus, with two deaths and 82 people accounted fully recovered.

Globally, according to the AFP news agency, the Covid-19 pandemic has already claimed more than 355,000 lives and infected more than 5.7 million people in 196 countries and territories.

Source: Lusa