Mozambique Elections: CTA says protests caused losses of 42.3 million euros – Watch

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Mozambique Elections: CTA says protests caused losses of 42.3 million euros – Watch

12:00 CAT | 31 Oct 2024

Screen grab: Miramar

The Confederation of Economic Associations of Mozambique (CTA) estimates that the three days of demonstrations and strikes called by presidential candidate Venâncio Mondlane cost three billion meticais (€43.2 million), and that the destruction and looting left 1,200 unemployed.

“We had sabotage, vandalism, break-ins of private and commercial establishments and even around 33 production facilities,” which caused “financial losses estimated at around 3 billion meticais. The level of vandalism of establishments is such that some will not be able to operate again,” CTA president Agostinho Vuma said.

Vuma was speaking to journalists yesterday (30-10) after a meeting in Maputo with the government, including five ministries from areas such as transport, tourism, fisheries, energy, industry and commerce, to analyse “the impact” of the demonstrations and strikes held on 21, 24 and 25 October, and a new seven-day strike from Thursday called for by Venâncio Mondlane, who does not recognise the results of the October 9 elections.

“It is as if we were installing a new unit [in relation to the destroyed or vandalised establishments], if we have to look at the operationality. In terms of impact, in terms of jobs, we are talking about 1,200 workers directly,” said Vuma, estimating that with the “multiplier effect” on families this situation already threatens “around 6,000 families”.

Vuma also claimed that the protests resulted in a “reduction in foreign exchange market transactions” in the financial sector by 75.3%, falling from the previous daily average of US$60 million (€55.2 million) “to around US$14 million (€12.9 million) on 24 and 25 October”.

“Companies are implementing crisis plans to minimise the losses we are experiencing, but also the losses we have been experiencing in the context of the nature of our economy,” Vuma said.

After receiving assurances from the government about security to be provided in the coming days, the leader of the CTA declared: “We remain prepared to have our production units open. […] We also received an assurance from our minister as to the availability of fuel”.

The president of the CTA called for calm, recalling that “at the end of the day”, everyone is a consumer and needs “to have food on the table”.

“Our leaders need to guarantee the security of our units, because we are witnessing looting and pillaging, which is jeopardizing our economy and our food supply. We can choose the issue that has to do with the right to demonstrate, but we can also choose the right to food,” he said.

Another consequence of the protests he listed was the entry of trucks from South Africa, whose border with Mozambique was closed after protesters set fire to tires on the road.

“In the end, the border had to be closed, which affected the entry of around 1,200 to 1,300 trucks. And a good portion, around 90% of these logistics trucks, go to the Port of Maputo. It shows that we are also preventing the entry of essential products for our economy,” Vuma acknowledged.

At the end of the meeting, Vuma called on businesspeople to avoid the speculative pricing already creeping in.

The National Electoral Commission (CNE) of Mozambique announced last Thursday the victory of Daniel Chapo, supported by the Front for the Liberation of Mozambique (Frelimo, the party in power since 1975) in the election for President of the Republic on 9 October, with 70.67% of the votes.

Venâncio Mondlane, supported by the Optimist Party for the Development of Mozambique (Podemos, an extra-parliamentary party), came in second place, with 20.32%, but said he did not recognise these results, which still have to be validated and proclaimed by the Constitutional Council.

On Tuesday, Venâncio Mondlane called for new strikes and protests for a period of one week starting on Thursday, culminating in a national demonstration on 7 November in Maputo.