Mozambique: Business group hails reconquest of rebel areas, sees economic boost – Lusa

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Mozambique: Business group hails reconquest of rebel areas, sees economic boost – Lusa

4:32 CAT | 11 Aug 2021

File photo: Sala da Paz

Mozambique’s Confederation of Economic Associations (CTA), the country’s largest business organisation, said on Wednesday that the reconquest by government and allied forces of areas previously occupied by armed rebels in Cabo Delgado province, in the north, opens up “positive prospects” for companies and the economy.

“The positive outlook for the private sector is essentially based on the return of business activities and projects that have been suspended due to terrorist attacks, particularly the Total Energy project,” the CTA said in a statement, referring to the huge natural gas project overseen by the French multinational Total Energy, which is the biggest private investment in Africa.

The CTA stressed that victory over the armed groups that have been carrying out attacks in Cabo Delgado for several years now would result in the resumption of that project and the reactivation of contracts with local companies providing goods and services to it. This, it said, would provide a major boost for many small and medium-sized enterprises.

“In the same way, this situation may favour social stability due to the return of the refugee population, thus mitigating the current humanitarian drama,” it said.

Due to the suspension of Total’s activities in the region, following an attack in Palma district on 24 March, several companies have been significantly affected, especially those that were directly or indirectly involved in this project, the CTA statement notes.

It cites a study that showed that some 288 companies had suspended their activities in Mocímboa da Praia and Palma districts, affecting a total of 23,000 jobs. The survey also found that the shutdown of the Total project resulted in the suspension of supplies of goods worth $35 million (€29.8 million).

On Tuesday, the commander of Mozambique’s army, Cristóvão Chume, said that the joint Mozambique-Rwanda force that recaptured the town of Mocímboa da Praia on Sunday was now undertaking “mopping up missions” across the district.

“At this moment, defence missions are taking place in the entire area of Mocímboa da Praia,” Chume said, speaking to the media from the town.

Mocímboa da Praia, which many had cited as the “base” of the insurgents and where attacks began in October 2017, is one of the larger towns in the north of Cabo Delgado province, located just 70 kilometres south of the site where construction had begun on the natural gas exploration project, in which several international oil companies are involved.

The town was invaded and occupied by rebels on 23 March last year, in an action responsibility for which was later claimed by the local affiliate of Islamic State. On 27 and 28 June of last year it was the scene of fierce clashes between government forces and insurgent groups, prompting the flight of a considerable part of the population.

The town was retakend at 11 a.m. on Sunday by a joint force from Mozambique and Rwanda after weeks of military operations, with Rwandan officials in Kigali saying that around 70 insurgents were killed.

In the wake of the attacks since 2017, more than 3,100 people have died, according to the ACLED conflict registration project, and more than 817,000 people been displaced, according to the authorities in Mozambique.

Source: Lusa