The Confederation of Economic Associations of Mozambique on Monday called for support for the business community and a plan to “clean up our image” internationally when almost 20,000 people are unemployed after three months of post-election demonstrations.
“There is no doubt that we have soiled our image; if we have, we must clean it up. We have to clean up our image and offer sustainability,” said the executive director of the Confederation of Economic Associations of Mozambique – CTA, Eduardo Paulo Sengo, in an interview with Lusa in Maputo.
The CTA estimates that, since 21 October, more than 500 companies have been affected by the post-election demonstrations. Several others still have their activities suspended, with figures pointing to almost 20,000 people now out of work.
For Eduardo Paulo Sengo, with the “truce” announced for the next three months by former presidential candidate Venâncio Mondlane, who is leading the protest against the demonstrations, the priority should be political stabilisation in a programme that should include the recovery of the business fabric and a plan to “clean up the country’s image” for foreign investment.
“We need a programme aimed at the international community and investors to demonstrate the measures’ sustainability, to re-establish political stability. On the other hand, what will be important is a programme to support economic recovery, where the priority must be injection,” he added.
In addition to the injection into the business fabric, Eduardo Paulo Sengo continued easing prudential ratios so that commercial banks could offer moratoriums to companies concerning debts and credits.
“The availability of foreign currency will also be very important because we don’t produce equipment during this period. Everything that is going to be done for economic recovery and rebuilding these assets will have to be imported. Mozambique faces major challenges in terms of access to foreign currency. So the measures that will be taken must include making foreign currency available,” he said.
More than 300 people have died and over 600 have been shot in the post-election demonstrations since 21 October in Mozambique, called by presidential candidate Venâncio Mondlane – who does not recognise the results, claiming “electoral fraud” – which have degenerated into violence and the destruction of public and private infrastructure.
On 23 December, Mozambique’s Constitutional Council proclaimed Daniel Chapo, the candidate supported by the ruling Front for the Liberation of Mozambique (Frelimo), the winner of the presidential election, with 65.17% of the votes, as well as the victory of Frelimo, which retained its parliamentary majority in the general elections of 09 October.
This announcement sparked chaos across the country, with pro-Mondlane demonstrators – who won only 24% of the vote according to the Constitutional Council – in the streets, barricades, looting and clashes with the police.
Last week, Mondlane demanded 25 measures from the Mozambican authorities over the next three months, threatening to resume demonstrations and street protests “in a more intense manner” if they were not implemented.
Lusa