Mozambique: Unrest sees €354M in losses as thousands of stores vandalised – CTA | Watch

Login

Register

http://www.clubofmozambique.com/

Mozambique: Unrest sees €354M in losses as thousands of stores vandalised – CTA | Watch

11:18 CAT | 13 Nov 2024

Screen grab: Miramar

Mozambique’s largest business association yesterday estimated that business operators lost 24.8 billion meticais (€354 million) during 10 days of stoppages and demonstrations called by presidential candidate Venâncio Mondlane, during which 151 businesses were vandalised.

‘These demonstrations accompanied by the paralyses of economic activity, we found that the trade, logistics and transport sectors were the most affected, and the total losses and impact on GDP (Gross Domestic Product) totalled 24.8 billion meticais (€354 million), which is about 2.2% of our GDP,’ said the president of the Confederation of Economic Associations of Mozambique (CTA), Agostinho Vuma.

Mozambique, and above all Maputo, the capital, have experienced stoppages of activities and demonstrations called since 21 October by Venâncio Mondlane, who does not recognise the results of the general elections announced by the National Electoral Commission, which give victory to Daniel Chapo and the Mozambique Liberation Front (Frelimo, the ruling party).

The mostly violent demonstrations left a trail of destruction in Maputo, with reports of deaths, injuries, arrests, destroyed infrastructure and looted shops, especially on 7 November.

At a press conference in Maputo yesterday, the leader of the Mozambican business sector said that the losses caused put the achievement of economic growth of 5.5% at risk, noting that the marches have been characterised by ‘vandalising and breaking into business units’.

‘Around 151 business units across the country have already been affected, % of which are in the cities of Maputo and Matola,’ said Agostinho Vuma, adding that the vandalisations alone have already caused costs of around $45.5 million (around €42.4 million), putting more than 1,200 jobs at risk.

The CTA president also said that the transport sector was one of the worst affected, especially in the Maputo metropolitan area, where a revenue loss of around 417 million meticais [€6 million] was reported in 10 days of stoppages.

‘The interruption of traffic on the Maputo corridor led to a reduction in the normal flow of lorries, with a daily average between 1,100 and 1,200 lorries falling to around 300 lorries a day,’ said Vuma.

According to data from the private business sector, the financial sector also suffered from the impact, with a reduction in demand for credit and 73.3% per day in transactions on the foreign exchange market, corresponding to around 60 million dollars, which fell to $14 million/day on 24 and 25 October alone.

Presidential candidate Venâncio Mondlane called on Monday for a new period of national demonstrations in Mozambique for three days, starting on Wednesday, in all the provincial capitals, contesting the electoral process.

‘We’re going to demonstrate at the borders, at the ports and in the provincial capitals. All 11 provincial capitals (…) We’re going to paralyse all activities so that they realise that the people are tired,’ he appealed, in a live broadcast on his official Facebook account, about the “fourth stage” of protest against the 9 October general election process, which he said will have “several phases” – to be announced later – and which, he said, is also against “kidnappings and abductions” and “against the murder of the people”.

Mondlane had previously called for stoppages on 21, 24, and 25 October, which were followed by seven days since 31 October, with national protests and a demonstration in Maputo on 7 November. These caused chaos in the capital, with several barricades, burning tyres, and police firing shots and tear gas throughout the day.

Source: Lusa