Mozambique: Proposal of measures to mitigate impact of violent demonstrations – Notícias

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Mozambique: Proposal of measures to mitigate impact of violent demonstrations – Notícias

2:19 CAT | 25 Nov 2024

File photo: CTA

The business sector will in the coming days submit to the government a proposal for short and medium-term measures to mitigate the impact of violent demonstrations on the economy.

To this end, the Confederation of Economic Associations of Mozambique (CTA) has been meeting business associations in Maputo to reflect on the riots and vandalism that have been taking place in the country as part of the protests against the election results, with particular emphasis on the city and province of Maputo.

The measures to be proposed are of a labour, administrative, fiscal, financial and other nature, and will help to alleviate the burden on companies following the suspension of activities.

“If the strike, vandalism and riots continue, our business community will be the one to go bankrupt from the accumulated losses,” the businesspeople stressed.

Internet blackout

Regarding the restriction of internet access, the private sector believes that in addition to the negative impact on foreign trade operations, it also compromises financial and banking transactions, affecting services that depend on payments and banking services for their fluidity.

In fact, teleworking, which was a contingency option for many companies to get around the roadblocks, has also been difficult to implement, damaging the relationship between companies and the market.

The CTA will continue to carry out a diagnosis of the situation and will collect contributions from business owners to prepare a proposal for specific measures.

A preliminary CTA assessment concluded that the shutdown of activities caused losses of more than 1.4 billion meticais in a single day, with indirect damage to more than 90% of the informal sector.

According to the private sector, this level of losses in just one day demonstrates the fragility of a country marked by high unemployment rates, in addition to the fact that the internet shutdown would lead to difficulties in paying salaries.

Widespread international press coverage of the unrest has resulted in the cancellation of holiday travel, jeopardizing an expected 360,000 visits, with a loss of US$50 million in revenue.

Source: Notícias