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Mozambique: CTA calls for diversification of INSS investments and review of the Labour Law
1:26 CAT | 27 Jun 2025
Photo: AIM
The Confederation of Economic Associations of Mozambique (CTA) has advocated the diversification of the National Institute of Social Security (INSS) allocation of funds for investment with a view to maximizing profitability and ensuring the robustness of the mandatory social security system. The private sector association is also calling for a review of the Labour Law.
According to the president of CTA, Álvaro Massingue, INSS investments have been concentrated in the real estate, financial, banking and other sectors, with limited results in promoting small and medium-sized enterprises and mitigating the large-scale employment crisis.
“We propose that a strategic debate be held in the context of social dialogue on the diversification of the INSS investment portfolio, prioritizing productive projects with high potential for social and economic impact in line with the priorities of the national business community,” Massingue said at a tripartite meeting between the CTA, the Labour Consultative Council and the Minister of Labour, Gender, Children and Social Action, Ivete Alane, in Maputo on Thursday (26-06).
Regarding the approval of the law on private security and protection, the CTA believes that the private security sector, one of the largest employers in the country, continues to operate in an environment of precarious employment due to the lack of an updated and regulated legal framework.
The law on private security has been stagnant in the Assembly of the Republic (AR) since 2017.
“It is urgent that the Ministry of Labour, in conjunction with the Ministry of the Interior, conducts demarches with the Council of Ministers to resume the legislative process and its approval during this fiscal year,” Massingue said.
Regarding the national minimum wage negotiation mechanisms, the CTA remains committed to actively contributing to the review of the minimum wage negotiation formula, taking into account the tripartite memorandum of understanding that postpones negotiations until August 2025.
On the other hand, the CTA hopes to review decree number 88/2024 of December 17, regarding the hiring of foreign workers, sustainable management of the INSS investment funds item and minimum wage negotiation mechanisms.
The president of the Labour and Social Security Department at the CTA, Faruk Osman, said that it is urgent to define criteria for the private sector to intervene in the management of the INSS investment funds.
In turn, the spokesperson for the Ministry of Labor, Gender, Children and Social Affairs, Baltazar Egídio, reported that the institution received the CTA to present the new governing bodies, recently elected.
In addition to the presentation, the CTA had the opportunity to present its concerns, including the requirements for hiring foreigners.
“The Minister of Labour accepted the issues presented. Naturally, they need to be developed. The minister also spoke about the hiring of foreigners,” she said.
Ivete Alane stressed that the ministry routinely receives requests and concerns regarding the issue of hiring foreigners.
“It is not uncommon for the ministry to receive requests for authorization to hire foreigners. What happens is that the hiring of foreign labour can only occur in situations where there are no nationals with such qualifications, or there are insignificant numbers,” she explained.
Source: AIM Moçambique
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