Political and military crisis affects reputation of Mozambique says CTA

Login

Register

http://www.clubofmozambique.com/

Political and military crisis affects reputation of Mozambique says CTA

6:25 CAT | 17 Mar 2016

VOA / The Central Bank has said that the political and military crisis may affect the economy

Current political and military tensions could affect the growth of the Mozambican economy this year, the Bank of Mozambique warned on Monday of this week, with its Monetary Policy Committee declaring that strengthening the coordination of fiscal, monetary and sectoral policies is essential to address short and medium term inflation prospects.

Political and military tension aside, the bank says that the economy could also be affected by the extreme climate events plaguing the country.

The warning comes at a time when the country’s entrepreneurs are already apprehensive about the physical and financial risks imposed by the crisis, particularly regarding the movement of freight, which in Mozambique moves principally by road between Maputo and the rest of the country.

Since the beginning of the year, attacks by armed men on freight and passenger vehicles on the country’s main roads have forced drivers to form up in military-escorted convoys, and the CTA (Confederation of Economic Associations of Mozambique) says it is already feeling the effects.

“This increases the time and cost of transport and the risk of losing vehicles,” deputy executive director and spokesman for the CTA Eduardo Sengo explained.

The crisis is also affecting the international reputation of the country, Sengo added.

“This damages the country’s image with investors, which creates problems for us because foreign investment is a source of capital in many cases.”

The CTA spokesman said that he expects a quick resolution of the crisis, adding that the tourism sector is also being affected, with visitors avoiding travelling to remote locations within the country by road.

Source: VOA Portugues