The Organização dos Trabalhadores de Moçambique (OTM)-Central Sindical is threatening to organize a national demonstration against the rising cost of living in the country, an official source announced last Friday (08.07).

"The union movement reserves the right to mobilize a nationwide demonstration or strike as a way to show its repudiation of the high cost of living," said Alexandre Munguambe, secretary general of the union.

The organization is threatening to hold the demonstration if it finds that the Mozambican government is not taking measures to "get the workers, families, and the entire population out of their misery," said the official.

Independent analyses have already warned that Mozambique is one of the African countries with a high risk of social upheaval associated with the deterioration of living conditions caused by the combined crisis of rising food and fuel prices due to the Russian invasion of Ukraine.

VAT Reduction

OTM also calls for reducing the Value Added Tax (VAT) on basic necessities, basic services, and fuel to ease the cost of living in Mozambique.

The government announced a subsidy to public transportation companies in the provincial capitals, in order to avoid spontaneous stoppages like those that occurred on Monday in Maputo and that left the capital at half-gas.

In reaction, the OTM, quoted by DW, demanded that the government take "effective measures" to mitigate the rising prices in the country, rather than "entertaining the population with promises to hand out money" or with "projects with no feet to stand on."

"The union movement demands clear and effective measures to control the prices of basic goods and services," stressed Alexandre Munguambe, noting that the country's minimum wage "does not even cover 50% of the basket" of families.