The Ministry of Industry and Commerce (MIC) met with the Confederation of Mozambique Economic Associations (CTA), in a meeting that served to socialise the proposal of revision of the regulation of fixing maximum profit margins for basic products.
Industry and Trade Minister, Silvino Moreno, who chaired the meeting, said that the proposal was based on the need to harmonise profit margins with the current situation, characterised by price rises, as well as ensuring the purchasing power of lower social classes.
Moreno, cited by the Profile website, noted that the document was expected to create a balance to ensure accommodation of the interests of the private sector and ensure that the lower social classes had purchasing power for basic products.
According to the government, this proposal also aims to regulate the profit margin of some items in the construction sector, such as iron and zinc plate, where the proposed maximum profit margin for wholesalers will be 8% and 12% for retailers.
On the private sector side, the proposal is welcomed, insofar as it will reduce unfair competition, improving the business environment in the Country. However, it does not welcome the proposed formula for calculating the maximum profit margin.
“In the calculation, one should consider all variables related to the factors of production, from the issue of transport and rent, as well as some specific characteristics of each product, so as not to fall into the error of applying the same percentage of profit margin on tomato and egg, since the deterioration time of these products is asymmetric,” reasons the private sector.
Meanwhile, the CTA has requested more time to analyse the proposal, in order to ensure greater inclusion in the collection of contributions from all entrepreneurs, promising to submit the opinion in the next two weeks.
