- Aviation, industry, trade, and health sectors among the hardest hit
- Businessmen demand immediate action from the Central Bank
By Aurélio Muianga
Maputo (MOZTIMES) – Sixty-three (63) companies have submitted pending requests to the Confederation of Economic Associations of Mozambique (CTA) for the payment of import invoices for raw materials and goods, some of which have been awaiting settlement for more than six months due to a shortage of foreign currency in the country’s commercial banks.
The CTA presented documents at a press conference on Tuesday highlighting the scarcity of foreign currency in the exchange market. On the occasion, Evaristo Madime, head of the CTA’s Industry Portfolio, stated that these documents would be submitted to the Bank of Mozambique, as the regulator of the financial system, as evidence that commercial banks lack sufficient liquidity to meet import demands.
Madime explained that among the 63 companies with pending international payments due to the foreign currency shortage, 41% belong to the industrial sector, 25% to aviation, and 21% to general trade.
The total value of unpaid invoices stands at 400 million dollars, according to the CTA. Madime further noted that "as a result of this situation, many airlines have decided to suspend flights to Mozambique, as well as sell their tickets exclusively through travel agencies based abroad".
Business leaders argue that the foreign currency shortage is unjustified, given that a significant portion of revenue from large-scale projects has not been repatriated. As an example, Madime pointed out that "the coverage of exports over imports, including mega projects, stands at 87%".
According to the CTA, one possible solution to ease the shortage of foreign currency in the market—enabling the import of raw materials worth $500 million—would be for the government to require companies in the extractive industry, in particular, to repatriate export revenues from large projects.
Another suggestion is for the Bank of Mozambique to halve the Net International Reserves (RIL) allocated for imports, injecting the remainder into commercial banks to increase foreign currency liquidity and resume support for fuel imports, at least by 50%.
If the foreign currency shortage persists, the CTA warns of a worsening economic crisis in the short term.
"Job opportunities will decline, further fuelling the social unrest we have been witnessing," Madime warned.
Paulo Oliveira, head of the CTA’s Communications Portfolio, revealed that vehicles, including ambulances, remain out of service due to a lack of funds to import replacement parts.
Meanwhile, Mariano Hassane, head of the Health Portfolio, raised concerns about difficulties in importing medicines due to the lack of foreign currency to settle invoices.
"The Ministry of Health itself is also struggling with imports due to the accumulation of unpaid invoices," Hassane stated.
(AM)
