The Mozambican Association of Fuel Retailers (ARCOMOC) is calling on the government to come up with urgent solutions to the current crisis facing companies importing fuel.

According to the president of ARCOMOC, Nelson Mavimbe, who was speaking on a podcast by the Center for Public Integrity (CIP), some companies operating in Mozambique are suspending their work contracts because they can no longer pay their salaries. "They are not operating because of the lack of fuel," said Mavimbe.

"Because of this problem, some retailers are no longer able to meet their obligations and have been unable to pay March salaries. Others are suspending contracts because they can't predict when this situation will end. It's a truly deplorable situation," he added, in a publication by the AIM.

Given the seriousness of the situation, the source suggests that the Mozambican government should be more proactive in resolving the dilemma. "It's extremely important for the government to be more proactive and aware of the sector's problems," he said.

In addition, the source acknowledged that the main difficulty is obtaining bank guarantees to finance fuel imports, due to the shortage of foreign currency, particularly dollars. However, a few days ago, the Bank of Mozambique (BdM) announced an increase in the percentage of foreign currency revenues that exporters must convert into national currency, from 30% to 50%. However, this measure has had no immediate effect, as the fuel crisis remains visible throughout the country.

ARCOMOC, which represents around 900 service stations across the country, fears that without effective intervention, the country will face a collapse in the supply of energy to end consumers.

(Photo DR)