The Confederation of Economic Associations of Mozambique (CTA) has called for the diversification of investments by the National Social Security Institute (INSS) to maximize returns and strengthen the sustainability of the mandatory social security system, according to the Mozambican Information Agency.
The proposal was presented this Thursday (June 26) in Maputo, during a tripartite meeting between the CTA, the Labor Advisory Council, and the Minister of Labor, Gender, Children and Social Action, Ivete Alane.
According to CTA President Álvaro Massingue, INSS funds have been mostly invested in real estate, financial, and banking sectors, with little impact on supporting Small and Medium Enterprises (SMEs) or addressing the employment crisis.
“We propose a strategic debate within the framework of social dialogue on diversifying the INSS investment portfolio, prioritizing productive projects with high social and economic impact, aligned with national business priorities,” said Massingue.
The CTA also urged the urgent approval of the Private Security and Protection Law, which has been stalled in Parliament since 2017. The organization highlighted that the private security sector is one of the country’s largest employers, but continues to operate under precarious labor conditions due to the lack of an updated legal framework.
“It is urgent that the Ministry of Labor, in coordination with the Ministry of the Interior, engage with the Council of Ministers to resume the legislative process and approve the law within this fiscal year,” the CTA stated.
Regarding minimum wage negotiations, the CTA reaffirmed its commitment to revising the current wage-setting formula, as agreed in the tripartite memorandum that postponed negotiations to August 2025.
The confederation also called for a review of Decree No. 88/2024, of December 17, concerning the hiring of foreign labor. The head of CTA’s Labor and Social Security division, Faruk Osman, emphasized the need for clear criteria that allow the private sector to participate in the management of INSS investment funds.
Meanwhile, Baltazar Egídio, spokesperson for the Ministry of Labor, said the meeting also aimed to present CTA’s new leadership bodies. Concerns regarding the hiring of foreign workers were also discussed.
Minister Ivete Alane noted that the Ministry frequently receives requests for authorization to hire foreign specialists but stressed that this should only be allowed when there are no qualified Mozambican professionals or when their number is insufficient.
Source: DE
