The President of the Republic asked on Monday, 08, young people to bet on agricultural production as part of the solution to unemployment. Filipe Nyusi also considered that the high cost of living is not combated by adopting administrative measures such as reducing VAT.

The head of the Mozambican state called on young people to look at the land as a factor for employability.

"Young people should look to rural areas as areas of wide potential for solving their problems, such as unemployment. They should look to the countryside as the natural and most sustainable platform for the country's growth. Do not be afraid of agriculture," said Filipe Nyusi, at a conference for young people in Maputo.

The head of state also argued that the economic crisis cannot be fought with administrative measures alone.

"The cost of living, which at present is aggravated by the fuel crisis and these food products with an emphasis on cereals, cannot be solved by administrative and fiscal measures alone. You have to take away VAT," he said.

Filipe Nyusi also announced, this Tuesday, a package of measures to mitigate the high cost of living in the country.

Of the measures announced, the highlight goes to the reduction of the Value Added Tax (VAT), from 17 to 16% and exemption for importation of agriculture and energy related factors.

Still with regard to taxation, the government has decided to freeze a substantial part of the revenues it usually collects from businesses, reducing corporate income tax for the agriculture, aquaculture, and urban transport sectors from 32% to 10%.

On the other hand, Nyusi looked at the exploitation of natural resources and decided that 10% of the revenues be channeled to the provinces where they are extracted.