The Mozambican government has expressed concern about the continuation of post-election demonstrations, which could have a negative impact on the country’s economy and stability. The government has asked the private sector to keep its operations active, guaranteeing the availability of fuel and essential products, reports O País.
At a meeting between the state and the Confederation of Economic Associations of Mozambique (CTA), held on Wednesday (30), ways were discussed to mitigate the effects of the demonstrations, which have affected the functioning of institutions and companies since 21 October.
The Minister of Industry and Commerce, Silvino Moreno, stressed that the vandalisation of public and private property could aggravate the country’s already precarious economic situation.
‘The country has come to a standstill or is running at half capacity. On the 24th and 25th, it was almost a total paralysis, with few companies operating,’ he said.
The source pointed out that the stoppage resulted in economic losses estimated at more than 1.4 billion meticals a day, and that around 1,200 jobs were affected. He also warned of the social impacts, such as the interruption of classes in several schools, which could jeopardise students’ education.
‘This impact is not only from the point of view of revenue, but also of the opportunities that the country loses on closure days,’ he lamented.
The financial situation is alarming: the CTA has recorded losses of more than 3 billion meticals in around 33 vandalised commercial establishments. The organisation’s president, Agostinho Vuma, said that there had been sabotage, vandalisation and break-ins, resulting in significant losses.
He also mentioned the drastic reduction in transactions on the foreign exchange market, which went from an average of 60 million dollars to around 14 million on the days of the protest, which represents a drop of 75.3 per cent.
The movement of goods has been severely affected, with traffic on the Maputo corridor interrupted, making it difficult for 1,200 to 1,300 lorries to enter, 90 per cent of them destined for the Port of Maputo. Vuma warned that if Mozambique closes itself off to the world, there will be significant economic pressure on the supply of goods and services.
‘We are preventing the entry of essential products for our economy,’ he said.
The CTA called on the government to act as a mediator in negotiations with the protesters, seeking peaceful solutions to avoid further damage to the economy.
‘We need a disciplined dialogue so that the demonstrations don’t result in destruction,’ said the representative.
