Mozambican entrepreneurs in South Africa call for custom duties cut

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Mozambican entrepreneurs in South Africa call for custom duties cut

1:27 CAT | 15 Sep 2016

AP (File photo)

Mozambican business people in South Africa, concerned about the serious economic crisis in their home country, are calling on the government to exempt basic necessities from customs duties.

Most of the products consumed in Mozambique, especially in Maputo, are imported from South Africa. Tariffs are considered too heavy by importers, especially at a time when the national currency is in free fall against the rand and the US dollar.

The South African rand carries great weight in the Mozambican economy because of its dependence on South Africa for essential products. Since January, the metical has lost about half its exchange value against the South African rand, causing the cost of living in Maputo to skyrocket.

Mozambican businesswoman Amelia Muthisse says that the economic crisis is aggravated by the armed conflict between the Renamo and the government, especially in the centre and north of the country.

Mozambique and South Africa are members of the Southern African Development Community, a regional economic organisation that promotes trade.

Source: Voa Portugues