Industrial production in the country totalled 113.3 billion meticals (1.7 billion dollars) in the first nine months of this year. According to a report by the Ministry of Economy and Finance, this performance is equivalent to 78 per cent of the government’s plan for the whole of 2024.
According to the budget execution document, the basic metallurgical industry continued to have the greatest weight, with 31.8 per cent of the total, standing at 36 billion meticals, followed by the food industry, with 28.9 per cent, corresponding to 32.6 billion meticals.
The government forecasts economic growth of 5.5 per cent for 2024, leveraged by the gas sector, but Mozambican President Filipe Nyusi has admitted in recent days that this target could be revised downwards due to the impact of the post-election demonstrations and stoppages that have been taking place for over a month across the country.
Recently, the Confederation of Economic Associations of Mozambique (CTA) made it known that it would be submitting a proposal to the government for short and medium-term measures to mitigate the economic impacts of the recent violent demonstrations in the country, pointing out that it was drawn up after a meeting between the organisation and various business associations.
According to the organisation, the aim of the measures is to combat the devastating effects of the riots and vandalisation that have hit the city and province of Maputo in particular, in the context of the protests against the election results.
The CTA’s proposal covers areas such as labour legislation, tax administration, financial support and other initiatives aimed at relieving companies of the burden of forced stoppages and material damage. The confederation has already warned of the seriousness of the situation, saying that if the protests and traffic blockades continue, the bankruptcy of companies could become an inevitable reality due to the accumulated losses.
In a preliminary assessment, the CTA found that the paralysis of commercial activities caused losses of more than 1.4 billion meticals in just one day, mainly affecting the informal sector, which recorded indirect damage of more than 90 per cent. In addition, the organisation reported losses estimated at 45.5 million dollars due to acts of vandalism.
