Mozambique’s employers say 2016 will be economically difficult

28 April 2016

Mozambique’s economy is expected to have a difficult year in 2016, said, recently in Maputo the vice president of the Confederation of Economic Associations of Mozambique (CTA), cited by Mozambican daily newspaper Noticias.

Agostinho Vuma said for this forecast was partly due to the El Niño phenomenon, which is affecting agricultural production and productivity in the southern and central areas, political and military tension, devaluation of the metical and public debt.

Vuma said the military-political tension was having a significant effect on the transport sector, so it is urgent to re-launch coastal shipping (cabotage) “to be an alternative for businesses as it can play an important role in the flow of production between the country’s three regions.”

Regarding public debt, the vice president of the CTA said that the decline in public investment was one of the immediate consequences, which may force private companies to lay off staff, given that the state is the main customer of these companies.

“If the state fails to invest the companies will not have an income, so they will not be able to pay salaries,” he said. (macauhub/MZ)