Home Southern Africa Mozambican SMEs severally battered by Covid-19

Mozambican SMEs severally battered by Covid-19

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· Covid-19 has adversely affected the operations of 70
companies in the central Mozambican province of Manica since they have to suspend their activities due to the pandemic

· Over 1300 workers had become unemployed due to the closure of those units, according to the official data released Manica Provincial Director of Labour, Ema Catan

Covid-19 has adversely affected the operations of 70 companies in the central Mozambican province of Manica since they have to suspend their activities due to the pandemic. Over 1300 workers had become unemployed due to the closure of those units, according to the official data released by Manica Provincial Director of Labour, Ema Catana.

Some of the workers have lost their jobs. A good number of workers have been laid off temporarily. They are waiting for information from the government as to whether the restrictive measures introduced to combat the pandemic will be relaxed.

Of the 70 companies which had suspended their operations, 44 have now reopened re-opened. According to information, 26 units remain paralyzed. Four companies have been closed for ever, and have compensated their workers in accordance with Mozambican labor legislation.

There are enterprises closed down by the order of the government to halt the spread of Covid-19. All bars and places for night entertainment were closed. Since the lockdown, 301 bars and similar establishments were closed in Manica.

Over 280 Manica enterprises took advantage of the government’s offer to waive fines charged for failing to contribute to the social security system. The government also reduced the interest on overdue payments. Mozambican micro, small and medium companies can only access the lines of credit made available by the government through the National Investment Bank (BNI). The scheme is aimed at combating the effects of the Covid-19 pandemic, if they commit to maintaining existing jobs, and creating new ones.

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