More than 1,110 companies have closed in northern Mozambique since an armed insurgence began in the region in October 2017, according to reports monitored here on Friday.
Confederation of Economic Associations (CTA) president Agostinho Vuma told the media that 410 of the closed companies were located in districts of Cabo Delgado province that have been directly affected by the attacks. The districts are Macomia, Muidumbe, Nangade, Quissanga, Mocímboa da Praia and Palma.
“The other 750 companies suffered indirect impacts due to their exposure in the various value chains, whose flow [of activity] was interrupted following the recent attack on Palma district,” Vuma said.
The recent suspension of activities at the liquefied natural gas project being developed by a consortium led by French giant Total is expected to “significantly affect a large number of companies and their links in the value chains”, Vuma warned.
The CTA official also revealed that more than 198,000 jobs have been lost since the attacks began, with 56,000 of these being losses in business units in the districts affected by the violence. The remainder are job losses in the farming sector that has been severely affected by displacement of families.
With respect to the quantum of economic losses, Vuma said the disturbances have cost the province about US$209 million in lost revenue or damage to equipment.
Of this amount, US$100 million corresponded to losses in agricultural production, while US$95 million related to damage to physical capital and US$14 million was losses in cash flow in the various value chains, the official said.
Armed insurgents linked to the Islamic State have intensified attacks on government installations as well as on locals and foreign nationals in Cabo Delgado in recent months, triggering a humanitarian crisis that has seen more than 700,000 people leaving their homes.