SMEs / Mozambique: Fighting unemployment with ice cream
File photo / Eduardo Sengo
The Confederation of Economic Associations of Mozambique (CTA), the country’s largest employers’ association, has waived the sum it receives annually from the Mozambican government, in response to the country’s difficult economic situation.
“In view of the country’s unfavourable macroeconomic situation, the CTA’s board of directors met at the 54th regular session and decided to waive financial support from the government under the programme contract,” CTA vice president Castigo Nhamana said in Maputo yesterday.
CTA executive director Eduardo Sengo told journalists that the organisation received 7.5 million meticais (EUR 104,000) annually under the programme signed by the two parties every year since 2006.
“We will not receive this money any more. We are foregoing it, but our relationship with the government will continue,” Sengo said.
In a statement he read to the press, the CTA vice president said that the current programme ends in December, but the organisation will propose renewing it without the clause providing for the transfer of money.
“The CTA will continue to promote entrepreneurship awareness for the payment of taxes and in this perspective is developing activities with informal operators to formalise and thus contribute to greater mobilisation of revenues,” Nhamane said.
Asked about the symbolic nature of the measure, bearing in mind that the Mozambican government was in breach of several of its obligations, the CTA vice president only said that it was a unilateral decision on the part of the CTA, and had been communicated to the executive.
The Mozambican economy is trying to recover from its worst year in recent times, growth have been only 3.8 percent in 2016. The country is currently facing a debt crisis, and is in default with its creditors.Source: Lusa