The president of the Confederation of Economic Associations (CTA), Agostinho Vuma, said on Tuesday (25) that the private sector cannot resume its activities without clear guarantees, especially considering the current climate of demonstrations in various parts of the country. Vuma was reacting to the recent measures announced by the government to ease the financial pressure on small and medium-sized enterprises (SMEs).
At a meeting with representatives of commercial banks, the government unveiled a package of measures, including the creation of subsidised credit lines. These lines are aimed at companies with no debts but who need capital to reactivate their businesses, with annual interest estimated at 15 per cent.
However, Agostinho Vuma expressed concerns about the effectiveness of these measures. The CTA president questioned how companies that already have loans in place will be able to accept new credit, considering the imminent risk of new demonstrations and vandalism.
CTA pointed out that the post-election demonstrations caused more than 510 million dollars in damage.
For him, the conditions of access and the cost of the funds need to be better evaluated so that the private sector can really benefit from the proposed measures.
In addition, Vuma drew attention to the climate of insecurity in the country, particularly in relation to kidnappings of businesspeople. This year, three businesspeople have already been kidnapped, which, according to the CTA leader, reflects a growing wave of violence and intolerance in Mozambique.
‘We are living in a time of hatred, in which it is not recognised that our companies are responsible for generating jobs and profits,’ he said. For Vuma, security is an essential factor so that companies can operate with confidence and resume their activities in a sustainable way.
The CTA president called for reflection on security measures and the need for a more stable environment for the economic recovery of the private sector.
Source: O País
