Mozambique: Business Confederation wants minimum wage negotiations postponed to August – Watch

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Mozambique: Business Confederation wants minimum wage negotiations postponed to August – Watch

2:32 CAT | 10 Apr 2025

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

The Confederation of Economic Associations of Mozambique (CTA), which represents the private business sector, has called for the postponement of salary adjustment negotiations until August, given the current crisis situation.

“We must take into account today that a salary adjustment would have an immediate impact, an average increase of 4% in companies’ costs, especially in labour-intensive sectors. Given this situation, as a confederation, we want to propose postponing the negotiation of the minimum wage adjustment until August, 2025,” said President of the CTA, Agostinho Vuma, at the opening of the first plenary session of that organization’s Labour Consultative Committee in Maputo.

Negotiations for salary adjustments in Mozambique, especially in the public sector, usually take place at the beginning of each year, between January and April.

The CTA said in a statement that its appeal comes in response to the instability in the country’s business sector caused by the post-election crisis.

For Vuma, the current salary adjustment could lead to possible layoffs, growth in informality and inflationary pressure, in addition to the reduction in tax revenue and loss of workers’ rights.

The CTA chairman also called for the implementation of support measures for the private sector, such as credit lines, temporary tax exemptions and increased security.

Mozambique has been experiencing violent social unrest since October, with demonstrations and strikes called by former presidential candidate Venâncio Mondlane, who rejects the election results of October 9, which gave victory to Daniel Chapo.

Almost a thousand Mozambican companies were affected by the post-election protests, with an impact on the economy of over €480 million and 17,000 thousand unemployed, according to the most recent estimate by the Confederation of Economic Associations (CTA).

Since October, at least 388 people have died as a result off protests, according to the Decide Platform, a Mozambican non-governmental organization that monitors the electoral process.

The Mozambican government has confirmed at least 80 deaths, in addition to the destruction of 1,677 commercial establishments, 177 schools and 23 health units during the protests.