Mozambique: Companies want country’s image restored, investment

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Mozambique: Companies want country’s image restored, investment

9:07 CAT | 22 Jan 2025

File photo: Carta de Moçambique

The Confederation of Economic Associations of Mozambique (CTA) yesterday advocated support for businesspeople and a plan to “clean up the country’s image” internationally, at a time when almost 20,000 people have lost their jobs after three months of post-election protests.

“There is no doubt that we have tarnished our image and, if we have tarnished it, we have to clean it up. We have to clean up our image and offer sustainability,” declared CTA executive director Eduardo Paulo Sengo in an interview with Lusa in Maputo.

The CTA estimates that, since October 21, more than 500 companies have been affected by the post-election protests and several others still have their activities suspended, with the figures pointing to almost 20,000 people now without a job as a direct result of the unrest.

For Eduardo Paulo Sengo, with the “truce” announced for the next three months by former presidential candidate Venâncio Mondlane, who is leading the opposition to the demonstrations, the priority should be political stabilization, in a program that should include the recovery of the business sector and a plan to “clean up the country’s image” for foreign investment.

“We need a program aimed at the international community and investors in order to demonstrate the sustainability of the measures taken to re-establish political stability. On the other hand, what will be important is a program to support economic recovery, where the priority should be the injection,” Sengo added.

In addition to the boost to the business sector, Sengo continued, the easing of prudential ratios so that commercial banks cold offer companies moratoriums on debts and credits would be most welcome.

“The provision of foreign currency will also be very important because during this period we are not producing equipment. Everything that will be done for economic recovery and for the reconstitution of these assets will have to be imported. Mozambique faces major challenges in accessing foreign currency. Therefore, the measures that will be taken must include the provision of foreign currency,” he declared.

More than 300 people have died and over 600 have been shot in the post-election demonstrations since October 21 in Mozambique, called by presidential candidate Venâncio Mondlane – who does not recognize the results, alleging “electoral fraud” – which have degenerated into violence and destruction of public and private infrastructure.

On December 23, the Constitutional Council of Mozambique proclaimed Daniel Chapo, a candidate supported by the Mozambique Liberation Front (Frelimo, in power), the winner of the presidential election, with 65.17% of the votes, as well as the victory of Frelimo, which maintained its parliamentary majority in the general elections of October 9.

The announcement caused chaos across the country, with pro-Mondlane protesters – who, according to the Constitutional Council, only obtained 24% of the vote – taking to the streets, barricading themselves, looting and clashing with the police.

Last week, Mondlane demanded compliance with 25 measures from the Mozambican authorities over the next three months, threatening to resume “more intense” street protests if they are not implemented.

Source: Lusa