Mozambique: Government promises to pay December wages – AIM report

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Mozambique: Government promises to pay December wages – AIM report

6:34 CAT | 13 Dec 2024

Photo: CTA

The Mozambican government on Thursday guaranteed that it will pay the December wages and pensions to workers of the public administration by 20 December.

Speaking at a meeting in Maputo with private businesses, Transport Minister Mateus Magala said that, in addition to guaranteeing the December wages, the government will speed up payment of its debt to suppliers of goods and service. That debt currently stands at 1.4 billion meticais (about 22 million US dollars, at the current exchange rate).

Magala announced a ten per cent discount on inter-provincial transport between 15 December and 15 January. Foodstuffs handled in the Maputo fishing port will be exempt from handling fees, for up to 94 tonnes, for the same period.

He added that the government is taking measures to mitigate the cost of basic foods during the festive season. This will cover goods such as rice, maize flour, vegetable oil and sugar. Magala did not say precisely how these food subsidies will be managed.

He said the current adverse situation faced by Mozambique is the result of the demonstrations and rioting called by fugitive presidential candidate Venancio Mondlane in pursuit of his claim that he won the 9 October presidential election.

Magala called for cooperation between the public and private sectors to overcome the current crisis.

READ: Mozambique: Govt promises to pay salaries and pensions by Dec. 20 , settle debts to suppliers

“These measures will only have the desired impact with the support of the private sector”, he declared. “We recognise the role of the private sector and its interest in increasing production and the number of jobs”.

Magala said there are many new and emerging challenges that the country should urgently face in order to attain sustainable development. Those challenges included “the adverse effects of the volatility of the prices of foodstuffs, the water crisis caused by persistent droughts and the impacts of climate change”.

He claimed that the government has been promoting diversification of the economy to take advantage of its strong points, through the development of value chains and pursuing reforms to safeguard economic stability.

Magala said that an international economic slowdown and the increase in geo-political tensions had caused a decline in Foreign Direct Investment this year, which had fallen by three per cent when compared with 2023.

Nonetheless, he was optimistic that there would be “moderate” economic growth this year. The GDP had grown by 5.4 per cent in 2023, and the forecast for this year is 4.3 per cent.

Magala predicted that, as from 2027, the GDP will grow by 13 per cent a year, driven by the development of the liquefied natural gas (LNG) projects in the Rovuma Basin, off the coast of the northern province of Cabo Delgado.

Source: AIM