Mozambique: Alcoholic beverage sector hit by post-election violence, looting

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Mozambique: Alcoholic beverage sector hit by post-election violence, looting

2:19 CAT | 09 Jan 2025

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

Mozambique’s alcoholic beverages industry today estimated that 1,200 workers in the sector are now unemployed as a result of the vandalism and looting of around 50 establishments during the post-election protests.

“The alcoholic beverage sector was no exception, it was badly hit and we’re talking about producers, importers, distributors, speciality shops, supermarkets and small units that were affected by the demonstrations,” said the executive director of the Association of Producers and Importers of Alcoholic Beverages (APIBA), Custódio Pedro, speaking to Lusa.

At issue are the demonstrations and stoppages that have brought chaos to the streets, a situation that worsened after the Constitutional Council (CC) proclaimed the election results on 23 December, giving victory to the Mozambique Liberation Front (Frelimo, in power) and Daniel Chapo, the presidential candidate supported by this party.

According to APIBA’s executive director, the list of around 50 establishments includes retailers whose infrastructure was vandalised and destroyed, including supermarkets, grocery stores and the logistics sector.

“There are establishments that have never opened since 23 December, and all entrepreneurs in the sector have been affected, from large, medium, small and micro-enterprises; no one has been left out of this,” he said.

Custódio Pedro specified that the producers of alcoholic beverages in Mozambique were affected by the demonstrations, having reduced their production as workers could not move around.

“Importers have also been affected and have had constraints in terms of delaying the customs clearance process and getting the product to the point of sale,” said Custódio Pedro.

In light of the demonstrations, the Association of Producers and Importers of Alcoholic Beverages warned of the withdrawal of investment from the sector in the country, predicting an increase in unemployment levels in Mozambique.

Custódio Pedro asked Mozambique’s government for support as a solution: “There is talk of funds to support business recovery, which has been very badly affected. Some tax exemption was needed to recover this sector,” asked the president of APIBA.

The Confederation of Economic Associations (CTA) estimated that on December 30, more than 500 businesses were vandalised during the post-election demonstrations in Mozambique. At least 12,000 people are now unemployed.

“These are companies that were vandalised and are mainly located in Maputo province, where most of the country’s industrial fabric is,” Onório Manuel, vice-president of industry at the Mozambican Confederation of Economic Associations (CTA), told Lusa today.

Mozambique has been experiencing a new phase of social tension since 23 December, following the announcement of the final results of the general elections on 9 October, marked by looting, vandalism and barricades, particularly in Maputo.

The announcement of the results by the CC once again caused chaos throughout the country, with pro-Venâncio Mondlane demonstrators – who won only 24% of the votes – in the streets, barricades, looting and clashes with the police, in which almost 300 people died, according to non-governmental organisations.

Source: Lusa