Cost containment in Mozambican public enterprises to result in creation of a fund

27 September 2010

Nampula, Mozambique, 27 Sep – The savings resulting from reining in spending in companies that are public or majority state-held will be applied in the creation of a fund to finance job creating initiatives, Mozambican Prime Minister Aires Ali has stated.

Ali made his comments last Thursday upon arrival in Nampula, where he presided at the ceremony to launch the strategic development plan for that region. The US$500,000 fund will also be used to finance projects to produce food in the country’s major urban centres, he said.

Creation of the fund was decided at the second meeting the prime minister held last Wednesday in Maputo with managers of the public and/or majority state-held companies, per the implementation of measures adopted by the government to contain the cost of living in Mozambique.

Regarding the contribution expected from public or majority state-held companies, Ali, cited by the Maputo-based newspaper Noticias, stressed that they would all have to become more efficient and effective to not cause more losses for the state.

Aires Ali added that increased production and productivity, as well as lower spending, are solutions the country needs to adopt during this phase in which everyone must redouble their efforts with a view to speeding up the development process. (macauhub)