After years of instability due to terrorist attacks, the Cabo Delgado region in northern Mozambique is now experiencing days of relative stability. And that brings hope to local entrepreneurs.
The relative stability in many parts of Cabo Delgado, previously the target of terrorist incursions, is bringing hope to local economic actors. Many entrepreneurs are reopening their businesses, boosting the region’s economic recovery.
The president of the provincial Business Council, Mamudo Irache, emphasises that several sectors are returning to normal.
“In Palma district we already have 285 [businesses that have reopened]. This is a good sign. In Macomia district, we are already rebuilding our commercial infrastructure. In Quissanga, the district government has recently established itself and entrepreneurs are already mobilising to be within the district,” he says.
Areas regain stability
Mocímboa da Praia, which was the cradle of violent extremism and occupied by terrorists for about a year, is now recovering, with more than 400 commercial enterprises resuming activity.
In Palma district, 285 businesses have already reopened and in Macomia, commercial infrastructure is being rebuilt.
In Quissanga, the district government was recently re-established, and entrepreneurs are mobilising to set up in the region.
The terrorist attacks affected a total of 4965 businesses, ranging from micro-enterprises to large companies.
Asked about the source of resources for the resettlement of companies, Mamudo Irache explains that the business sector in Cabo Delgado has created a method of borrowing among economic agents, as government support is mainly focused on humanitarian issues.
“We realised that the support is simply more focused on the humanitarian phase and not on the entrepreneurs’ phase. Not having that possibility to receive support at the government level, we – as entrepreneurs – created a model of cooperation,” he says.
Re-launching the private sector
As part of Cabo Delgado’s Reconstruction Plan, the Ministry of Industry and Trade has set up the Private Sector Recovery Programme (PRSP III), which offers financial support to entrepreneurs affected by terrorism through repayable credits. So far, 174 entrepreneurs have received funding and are resuming their businesses.
Nocif Magaia, director of the Provincial Directorate of Industry and Commerce in Cabo Delgado, emphasises that the PRSP project has allowed 35 million meticais to be allocated to economic agents in seven districts affected by terrorism.
However, he emphasises that economic recovery in the region must be gradual and that PRESP will not solve all the problems faced by the private sector. It is necessary for the overall economy to strengthen and generate demand and business for all.
“The main purpose of this PRESP project was to revive economic activity that had been severely affected by instability. This purpose has been achieved: 98% of the funded projects are being implemented by the beneficiaries,” says Magia.
“Through PRESP, we utilised local microcredit agencies that also benefited from this process to relaunch their credit activity at the rural level,” he concludes.
Measures to stimulate the economy
Recently, the president of the Provincial Assembly of Cabo Delgado, Francisco Loureiro, defended the creation of specific measures to stimulate the economy in the region, considering the difficulties faced due to violent extremism.
Francisco Loureiro, president of the Provincial Assembly: “The stabilisation of Cabo Delgado is a priority objective”
Loureiro questioned the Office of Economic Reforms at the Ministry of Economy and Finance about the possibility of incentives to attract workers and entrepreneurs to the affected areas.
“So, what incentives can we give or give up yet so that we can incentivise people to go to those areas to work and do business?” he asked.
The president of the Cabo Delgado Provincial Assembly is of the opinion that the stabilisation of Cabo Delgado is an ongoing process, and that a joint effort by the government, businessmen and the community is needed to boost economic recovery and ensure a prosperous future for the region.
DW
