Mozambique may have lost 2% of GDP in 10 days of demonstrations

Moçambique pode ter perdido 2% do PIB em 10 dias de manifestações

The post-election protests in Mozambique have already led to the loss of dozens of human lives and financial losses in the thousands.

The demonstrations began on October 21 and until then the future is uncertain. The argument is the "fraudulent" election results. Since then, Mozambicans have witnessed two situations: the paralysis of activities in the country or half-gas operation. The country "only" works on "truce" days.

The Center for Public Integrity (CIP) estimates that, in ten days of demonstrations, the country could lose 24.5 billion meticais, equivalent to two percent of the Gross Domestic Product (GDP) of 2024.

The NGO adds that if the 19 billion meticais spent on the 2024 General Elections is added to this estimate, the cumulative impact could be more than 3% of GDP.

This figure of 2% significantly exceeds the estimates released by the Confederation of Economic Associations of Mozambique (CTA), which calculated losses of 10 billion MT for the same period. The difference of around 14.5 billion MT suggests a discrepancy of 156.4% between the two approaches.

In addition, the Tax Authority's (TA) estimates of daily tax losses at the borders due to the shutdowns (1.5 billion MT) also show an apparent divergence from the daily collection figures projected in PESOE 2024, of approximately 950 million MT. This inconsistency raises questions about the accuracy and transparency of the estimates, especially in a critical economic and social context where financial information needs to be based on rigorous and clearly communicated data.

"Given the relevance of these estimates for the formulation of public policies and for the planning of companies and investors, it is recommended that the government and the CTA adopt a more grounded and transparent approach to the analysis and dissemination of economic data," suggests the CIP.

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