Businessmen see "positive outlook" with military advances in Cabo Delgado

Empresários veem “perspectivas positivas” com avanços militares em Cabo Delgado

The Confederation of Mozambican Business Associations (CTA), the country's largest business organization, said Tuesday that the reconquest of areas occupied by armed groups in Cabo Delgado opens up "positive prospects" for the country's businesses and economy.

"The positive private sector outlook is essentially based on the return of business activities and projects that have been suspended due to the terrorist attacks, most notably the Total Energy project," the CTA said in a statement.

That organization assumes that the victory over the armed groups that carry out attacks in the province of Cabo Delgado, north of the country, will result in the resumption of the gas project of the French multinational Total Energy - the largest private investment in Africa - and in the reactivation of contracts with Mozambican companies that provide goods and services to the enterprise.

CTA points out that the resumption of the project could be a relief for the small and medium-sized companies that were supplying goods and services to the oil venture.

"In the same way, this situation could lead to social stability as a result of the return of the refugee population, thus mitigating the current humanitarian drama," the statement said.

Due to the suspension of Total Energy's activities, following the March 24th terrorist attack in the Palma district this year, several companies were significantly affected, especially those that were directly or indirectly involved in this project, notes that business organization.

The CTA cites a study it conducted which indicated that some 288 companies have suspended their activities in the districts of Mocímboa da Praia and Palma, affecting a total of 23,000 jobs.

The survey found that the shutdown of Total Energy's project resulted in the suspension of $35 million worth of commodity supplies.

Lusa Agency

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