(3 minutes read)
The ninth edition of the Business Confidence index of Mozambique, presented by the Confederation of Economic Associations (CTA) in Maputo recently showed a movement from 28% in the second quarter to 29% in the third quarter of this year. The rally was mostly due to the peak of the agricultural marketing season; the recovery of the transport sector following the tariff adjustments; and the continuous recovery of the tourism sector.
This performance was a measure affected by the impacts of the rise in fuel prices, the lower-than-expected production in the fisheries sector (due to the low operationalization of the fleet, taking into account the high operational costs and the meager catches), and even a certain retraction in demand due to the rising cost of living. The employment index also moved up, particularly for hiring contract workers.
The CTA advocated a more reserved attitude from the Financial Regulator in order not to compromise the balance sheets of national companies. The current scenario, the report said, characterised by the tightening of financing conditions to face the rise in prices.
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The CTA also said that the monetary policy should have a more reserved attitude in the adjustments. The CTA expressed concern at the steady increase in the prime rate, which in January was 18.6%, as against 22.5% this month, resulting in an increase of four percentage points.
