Level of Aggregate Demand in Mozambique Low : Industry Associations

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The president of the CTA said that, although the situation is “better under control”, the post-election demonstrations, which have been taking place in Mozambique since October, have temporarily reduced investor confidence,” especially in SMEs [small and medium enterprises] and commerce” and in the country’s attractiveness as a tourist destination.

Mozambique’s private-sector Confederation of Economic Associations (CTA) said that the post-election crisis in the country had reduced the level of demand in all sectors, with hotels and restaurants being the most affected.

The hotel and restaurant sectors “still suffer” from the lack of demand for services, according to Mozambican businesspeople, who also complain about high production costs, despite the stability of prices of managed goods.

The president of the CTA said that, although the situation is “better under control”, the post-election demonstrations, which have been taking place in Mozambique since October, have temporarily reduced investor confidence,” especially in SMEs [small and medium enterprises] and commerce” and in the country’s attractiveness as a tourist destination.

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The CTA pointed to the restoration of socio-political stability and an increase in transport flow as roadblocks were reduced, together with the reduction in fuel costs, as some of the factors that influenced the increase in business robustness.