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Industry Collapsing: Business People Sue the State for Enormous Losses

Aurélio Muianga by Aurélio Muianga
July 10, 2025
in Business, Election 2024, Features, Politics
Reading Time: 3 mins read
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Industry Collapsing: Business People Sue the State for Enormous Losses

Shopping centres closed as a result of violent protests in Mozambique. Photo by Aurelio Muianga.

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- Post-election violence throws 12,000 people out of work, and causes unprecedented losses

By Aurélio Muianga and Ricardo Dias

Maputo (MOZTIMES) – The wave of post-election violence in Mozambique, unleashed after the validation of the results of the general elections held on 9 October, has Ieft a trail of economic devastation, with thousands of workers now unemployed, extensive damage to the business fabric of Mozambique, and lawsuits against the State.

A group of businesspeople has announced that it will sue the Mozambican government for its lack of action faced with the vandalization and looting of their establishments during the rioting of 23-24 December.

Muhamad Molana, the owner of Khangee Supermarket Lda, Muhamad Saide, the owner of the Pérola pastry shop, and the pharmacist Muhamad Jowe, are leading this movement of businesses demanding compensation. They accuse the defence and security forces of omission and even of complicity with the rioters.

“In our case, we saw the soldiers. Some of them were helping the looters take goods”, accused Jowe, who has lost electrical goods, furniture and equipment. Abdul Satar, the manager of the Al-Khail Machava Hotel, reported how the rioters completely emptied the hotel. “They took the televisions, beds, mattresses, toilet bowls and even the taps”, he said.   

The rioters struck at various establishments along the Avenida das Indústrias, including four bank branches which remain closed, or with limited operations. The manager of a branch of Standard Bank explained that the damage has obliged the bank to use an improvised fence and has limited its services to consulting bank balances and transfers to mobile platforms.  

CTA: 12,000 unemployed and shortages in sight

According to the Confederation of Mozambican Business Associations (CTA), the violence has damaged 40% of the country’s industrial fabric, cost more than 12,000 jobs, and caused losses exceeding 24 billion meticais.

Onório Manuel, the deputy chairperson of the CTA’s industry portfolio, warned that, if rioting continues, unemployment could reach half a million Mozambican workers. “In addition, we are forecasting a shortage of goods and an increase in prices, which will have a severe impact on the lives of Mozambicans”, he stressed.

Fuel industry among those worst affected

The fuel sector was particularly badly hit, with more than 100 petrol pumps vandalised. Although national reserves of fuel will last for three months, the destruction and the blocking of distribution routes caused temporary shortages in some regions.

“There’s no shortage of fuel, but the fuel stations are not an island, and they have also felt the impact of the violent demonstrations,” explained Moisés Paulino, the national director of hydrocarbons, adding that the restoration of stocks is under way.

A country in crisis

The demonstrations, called by self-exiled presidential candidate Venâncio Mondlane, who contests the election results, have left a train of destruction including the smoking ruins of political party offices, factories and shopping centres. Mondlane, in hiding in an undisclosed location, probably in Europe, has denounced alleged harassment and assassination attempts.

With many thousands of Mozambican families affected, with businesses counting losses running into the billions of meticais, and with key sectors of the economy weakened, Mozambique is facing an unprecedented crisis. The post-election violence has not only devastated the economy but has also exposed the institutional fragilities of the state, raising doubts about the capacity of the Government to respond, and about the future of the country. (AM/RD)

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