The Confederation of Economic Associations of Mozambique (CTA) warns that the impacts of the violent demonstrations could result in the loss of a third of the country's economy by the end of this year.

According to the President of the CTA, Agostinho Vuma, quoted by AIM, adding up the damage and losses in all phases, the violent demonstrations cost the economy around 32.2 billion meticais, which represents 3% of the Gross Domestic Product (GDP), dragging down more than 17,000 jobs.

"If this situation doesn't change by the end of the year, we could lose around a third of our economy! That's a lot and it's scary, but that's where we're heading if we don't take steps to get the economy back on track," warned Vuma.

Vuma said that faced with this scenario, businesspeople argue that the basic condition for business recovery is the restoration of peace and security, as it is now normal for someone to come into the stores to dictate prices.

He warned that these prices are unrealistic, citing as an example the companies in Machava, Moamba and Boane, which are victims of constant threats and extortion.

He stressed that there are no conditions for the resumption of activities, given that entrepreneurs need security guarantees for their commercial establishments.

He stressed that the law is clear in Mozambique: it is a crime to vandalize public and private property. The Mozambican business community believes that there is an apparent absence of some state institutions that are not playing their role in defending and securing the property and lives of others.

"The time has come to act, who is responsible for all this? Why does the state appear apathetic to the situation? How is the political dialog working out a solution? And what has it been producing?" asked Vuma. (AIM)