The Confederation of Economic Associations (CTA) has acknowledged that businesses affected by the 2024 post-election protests are only “modestly” resuming operations a year after the demonstrations that paralyzed the economy, adding that while some companies are restructuring, others have been permanently abandoned.
“Many business units that suffered acts of vandalism, looting, and destruction have managed to recover or are in the process of resuming their operations. There were some cases of permanent closure, but fortunately, in limited numbers,” said Onório Manuel, CTA’s vice president.
According to Manuel, there are clear signs of recovery among companies that have not yet fully returned to normal activity, recalling that the economy contracted by 5.68% in the fourth quarter of 2024 and 3.92% in the first quarter of 2025. “We don’t yet have exact figures, but we recognize that the impacts were severe and restructuring will take some time.”
“The gradual return of activity demonstrates the resilience of the national business community in the face of multiple adversities. However, we believe that, thanks to the restoration of sociopolitical stability and the measures adopted by the Government, the recovery process will soon gain momentum,” he added.
Previous CTA data showed that over 500 companies were vandalized and more than 12,000 people lost their jobs. “We’re talking about some of the country’s largest food industries, whose equipment was damaged and infrastructure completely destroyed. This will likely cause shortages and a sharp rise in prices,” the organization warned.
In January, the CTA admitted that economic growth in 2025 would fall well below 2024 levels unless support measures were introduced to assist companies affected by the looting and destruction that occurred during the post-election unrest.
“If we remain in a scenario without any measures—as we are now—with an eroded industrial base, damaged infrastructure, unemployment, and companies unable to finance their own recovery to restore production capacity, we will not achieve more than what we did last year. In fact, it will be well below that,” said Eduardo Sengo, former CTA executive director.
Sengo explained that Mozambique’s economic growth in 2025 depends on support packages and measures that help companies recover equipment and infrastructure damaged during the protests, maintain adequate stock levels, and safeguard jobs.
“If the current trend of interest rate reductions continues, along with the easing of reserve requirements and, above all, the availability of foreign currency for imports, we could expect slightly stronger growth than in 2024—but it’s unlikely to exceed 5%, the projection for that year,” Sengo added.
Mozambique has experienced intense social unrest since the October 2024 elections, marked by protests and strikes organized by Mondlane, who rejected the election results that declared Daniel Chapo, supported by the ruling Frelimo party, as the winner.
According to non-governmental organizations monitoring the electoral process, around 400 people lost their lives in clashes with the police. The conflict subsided following meetings between Mondlane and Chapo on March 23 and May 20, aimed at restoring peace in the country.
Source: Diário Económico
