Overdue invoices causing private sector hardship, says CTA – State owes 29 billion meticais

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Overdue invoices causing private sector hardship, says CTA – State owes 29 billion meticais

12:06 CAT | 14 Sep 2017

Noticias

Delays in the settlement of invoices for services provided to the state are creating constraints on the private sector, which is seeing its funding capacity compromised.

Figures presented recently by the chairperson of the Confederation of Economic Associations of Mozambique (CTA), Agostinho Vuma, indicate that from 2009 to the present, the state owes the private sector approximately 29 billion Meticais [around US$.474 million at current exchange rates].

Of this amount about nine billion Meticais have not yet obtained the Administrative Court authorisation which is a precondition for payment.

“A proposal we discussed with the government has it promising to pay at least 17 percent of this debt later this year,” Vuma said.

Speaking recently in Maputo 100 after his inauguration, Vuma listed several initiatives taken in the period under review to improve the business environment in the country.

He mentioned consolidation of the partnership with the government resulting in the adoption of important measures, including the elimination of compulsory use of Nacala special export terminal services; the establishment of a new border visa; the enactment of the law on medicines, vaccines and other biological products for human use and the creation of an energy regulatory authority.

National content law for megaprojects

“In order to ensure the involvement of the domestic private sector in the production and supply of goods and services to the megaprojects taking place in Mozambique, we began consultations with our associates that will culminate in the creation of a national content law,” he said.

During a meeting guided by the motto “Reforming in Times of Crisis”, an event that brought together a considerable number of entrepreneurs, Vuma said that CTA’s achievements were based on the vision of promoting a cohesive, productive, competitive private sector as a generator and distributor of national wealth.

“The initiatives we have been developing are aimed at building and leading, together with all confederation stakeholders, a business environment that places the private sector as an active player and a business ‘doer’ in our economy, encouraging business organisations to be inclusive, proactive and prosperous,” he said.

It was in this context that the CTA’s 2017-2020 strategic plan, foreseeing a strengthening of institutional capacity among other things, was approved, Vuma said.

“We intend to develop business support services, consolidate public-private dialogue, promote business opportunities and internationalise the CTA,” he said.

Source: Notícias