Mozambique’s private sector has appealed to the government for urgent concessions to shield local businesses and consumers from the fallout of the recent post-election violence that has rocked the nation.
Against the backdrop of escalating tensions stemming from allegations of electoral fraud, the Mozambican Confederation of Business Associations (CTA) has sounded the alarm on the profound economic repercussions of last week’s demonstrations.
According to CTA chairperson Agostinho Vuma, the economic toll caused by the unrest is estimated at a staggering 24.8 billion meticais (about US$388.1 million), approximately two percent of the country’s gross domestic product.
Speaking to journalists in Maputo on Tuesday, Vuma said the demonstrations paralysed activities in the trade, logistics and transport sectors.
He called for intervention by the Mozambican authorities to mitigate the crisis and bolster the resilience of local enterprises reeling from the turmoil.
Among other concessions, Vuma called for a suite of policy adjustments, ranging from the waiver of penalties and interest on late tax payments to the streamlining of post-clearance customs audits at key border crossings and ports.
One of the proposals “is to simplify and make more flexible post-clearance customs audits at the main borders and ports,” he said.
The CTA chief also called for a strategic recalibration of monetary policy, advocating for lower interest rates tailored to stimulate growth in the crucial agriculture sector.
The recommendations extend to regulatory reforms, including the extension of deadlines for expired documentation at institutions like the National Migration Service and the bolstering of security measures to safeguard public and private property.
Vuma noted the pressing need for the creation of security corridors along major transportation routes to ensure the uninterrupted flow of goods and people in vital commercial hubs.
The CTA also called for exemptions from value added tax for basic commodities such as cooking oil, soap, sugar, chicken and eggs, measures seen as crucial for supporting the underprivileged populations reliant on these products for sustenance.
The call by the private sector came in the wake of opposition protests that accompanied the announcement of the outcome of last month’s national and parliamentary elections.
The results extended the tenure of the ruling Frelimo party which has been in power since independence in 1975.
The opposition accused the electoral body of rigging the elections in favour of Frelimo.
JN/APA