(4 minutes read)
· The Mozambican Government is assessing the possibility of
lifting some labor restrictions in the industry sector to ward off the
fall out of the pandemic. At the request of the companies, the
government is considering lifting some restrictions.
· The Mozambican industry is reported to have incurred losses
to the extent of four billion meticais since the declaration of the
State of Emergency last March.
The Mozambican Government is assessing the possibility of lifting some
labor restrictions in the industry sector to ward off the fall out of
the pandemic. At the request of the companies, the government is
considering lifting some restrictions. The Mozambican industry is
reported to have incurred losses to the extent of four billion
meticais since the declaration of the State of Emergency last March.
The companies have urged the government to review the issue of only
one third of the workforce being at work. The nature of some
industries does not allow for these restrictions. The ministry isx
evaluating these restrictions, according to the Ministry of Industry
and Commerce.
According to the Confederation of Economic Associations of Mozambique
(CTA), the apex organization of Mozambican industry production
slowed by 70%, with emphasis on non-alcoholic beverages, sugar, oil
and soap, whose monthly shortfall stands at between 40% and 65%.
Covid-19 also led to redundancies in some cases leading to suspension
of employment contracts, affecting over 1000 workers.
The industry is keen to have some relief in obligations to third
parties such as banks, and a reduction in operating costs. It also
suggests reduction of interest rates and bringing down the overheads
such as energy bills. It is estimated that, on an average, a national
industry unit with a continuous production cycle, has a monthly
energy cost of around five million meticais, which represents 12% of
its cost structure. Reducing energy costs by 50% could therefore
support company finances in the amount of around 2.5 million meticais,
which, over a period of six months, could mean relief of about 15
million meticais per company.
