The Confederation of Mozambique Economic Associations (CTA) says that the announcement by the President of the Republic regarding the economic acceleration measures represents a strengthening of confidence in the public and private dialogue because, "in the history of this dialogue, there is no record of the Government, in such a short time, responding positively to several questions posed by the private sector.

"Six months after the presentation of the proposed Plan for Business Recovery at the Seventeenth Annual Conference of the Private Sector (CASP), the President of the Republic announces measures to stimulate the economy, among which, 11 had been proposed by the Private Sector," said the president of CTA, Agostinho Vuma, on Friday morning, during the press conference.

"CTA's assessment is that 70% of the matrix presented at the Seventeenth CASP was approved which represents a sign, clearly, that the dialogue between the Government, CTA and the companies, can produce positive effects on the economy," added the Mozambican private sector official.

On the reduction from IRPC's 32% to 10% for agriculture, Vuma congratulates the government as, according to CTA, the government is freeing up resources at zero cost for reinvestment. "This incentive is in line with the current challenges where we have to produce, particularly, food crops," he said. "We believe that domestic private investment may increase which boosts commercial agriculture," Vuma pointed out.

Currently, commercial agriculture, i.e. organized enterprises, is no more than half of the sector's production. In other words, of the approximately $3.7 billion that the sector contributes to GDP, the majority is still in the family sector.

Incidentally, according to the CTA president, this also explains the issue of products that are lost post-production. "The product of the companies is used up in almost, 100%, while the family production, maybe less than 50%. It is not to do away with family production, but to boost commercial production," reiterated CTA's top official.

As part of the negotiations for the wage adjustment in 2021, this agreement had been made between the parties, where the employers would commit to increase workers' wages even in the sense of reducing people below the poverty line in the Sector and the Government would provide this incentive.

Therefore, with these new measures announced by the Government, the Private Sector "promises to do everything to develop the sector and improve the working conditions of the working masses.

The president of the CTA, finished by reiterating, however, the rapid implementation of these measures so that "the benefit to businesses, the population, and the economy as a whole, come as soon as possible.