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CTA: “The EAP Is Filipe Nyusi’s Legacy to the Economy, Despite the Sins that Tainted His Government”

CTA: “The EAP Is Filipe Nyusi’s Legacy to the Economy, Despite the Sins that Tainted His Government”

The Confederation of Mozambican Economic Associations (CTA) considers the Package of Economic Acceleration Measures (EAP) to be the legacy left by Mozambican President (PR) Filipe Nyusi for the national economy during his ten years in power. The body notes, however, that in the same sector there have been sins that have tarnished the head of state’s governance, the Carta de Moçambique news portal reported on Monday, 12 August .

“Our sector, although affected, has been happy over the last ten years. We had the most far-reaching reform – the EAP – a reform that marks the entire period of Mozambique’s independence. Implemented well, it has the potential to bring about the economic growth we crave. As a consequence, at the last private sector conference, we defended the need to extend the EAP beyond the two years defined,” said CTA president Agostinho Vuma, quoted by the website.

The EAP is a set of 20 measures, approved in August 2022 by the Mozambican President, to boost the national economy, which has been affected by various internal and external crises, namely the covid-19 pandemic, the conflict between Russia and Ukraine, terrorism in Cabo Delgado and natural disasters.

PR in Parliament

The highlight of the measures is the reduction in Value Added Tax (VAT) from 17 per cent to 16 per cent, aimed at gradually reducing the tax burden to boost the economy and improve families’ purchasing power, as well as the exemption from VAT on the import of inputs for agriculture and electrification, with the aim of lowering the cost of agricultural inputs to increase production and competitiveness in agriculture and promoting more investment in renewable energies to speed up their access in rural areas.

Our sector, although affected, has been fortunate over the last ten years.We’ve had the most far-reaching reform – the EAP – a reform that marks the entire period of Mozambique’s independence.Implemented well, it has the potential to bring about the economic growth we crave.As a result, at the last private sector conference, we defended the need to extend the SAP beyond the two years defined
Agostinho Vuma

Meanwhile, for the CTA, there have been sins that have tainted Filipe Nyusi’s governance. “The highlight goes to the financial system, namely public indebtedness, through Treasury Bills, but also the increase in Compulsory Reserves for commercial banks demanded by the Bank of Mozambique, allegedly so that the economy can flow normally,” said the head of the organisation.

Agostinho Vuma

As the CTA has been complaining, Treasury Bills and the increase in Compulsory Reserves are measures taken by the Central Bank which, although they have their advantages, suck liquidity (money) out of the system that could be channelled into economic activity.

The focus is on the financial system, namely public indebtedness, through Treasury Bills, but also the increase in Compulsory Reserves for commercial banks demanded by the Bank of Mozambique, allegedly so that the economy can flow normally
Agostinho Vuma

“But we also have the issue of kidnappings and abductions. We are counting around 150 kidnapped businessmen who, after paying the sums demanded, decided to leave the country, repatriating immeasurable capital, leaving several Mozambicans unemployed,” added the president of the CTA, on the sidelines of the Annual Report on the General State of the Nation presented a few days ago by the PR.

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