Mozambican businesspeople, through the president of the Confederation of Economic Associations of Mozambique (CTA), yesterday defended the application of funds from the National Social Security Institute (INSS) to the productive sector, in addition to Treasury bonds, in order to improve the business environment..

According to Agostinho Vuma, who was speaking at the opening of the national meeting of the INSS, which is taking place in Beira, Sofala province, in the city of Beira, Sofala, in recent times the INSS has invested more in Treasury bills and Treasury bonds, to the detriment of productive investment.

"The CTA is willing to support the revision of the relevant legislation to broaden the scope for investment, with a view to improving the business environment in the country," said the president of the business confederation.

Quoted by Lusa, the official added that the INSS's financial reserves have doubled in the last three years, but that at the same time it is a cause for concern since this has meant a higher return on investment in Treasury bills and bonds, to the detriment of productive investment.

"This INSS option, despite offering guaranteed returns and no risk, has impoverished the productive sector. And we recognize that the INSS has a major legal limitation in terms of investment," said Vuma.

With the INSS at the forefront of the digital transformation process, reflected in the improvement of services to taxpayers, its expansion across the country and the consolidation of the modernization and computerization processes, the CTA is pleased with the good working relationship with the Ministry, witnessed by the recent revision of the Labour Law, unanimously approved by the Portuguese Parliament.

"Allow me to highlight some innovations, such as the introduction of the contract suspension regime for reasons of force majeure and unforeseeable circumstances," explained the CTA president.

For his part, the director-general of the INSS, Joaquim Siúta, acknowledged the need to invest in strategic sectors with a view to fostering economic growth and in terms of jobs, admitting the usefulness of the entrepreneurs' suggestion.

"What the CTA says is true. Because the INSS must contribute to the country's development to generate more jobs (...) If we invest in the strategic sectors, we will have a very large growth in terms of jobs and this means that the income from jobs will increase significantly. And that's good for the workers and good for Mozambican society," he said.