The Confederation of Mozambican Economic Associations (CTA), considered on Wednesday that the war in Cabo Delgado and the covid-19 pandemic were the main challenges faced by Mozambican business in 2021.

According to the president of CTA, Agostinho Vuma, the insecurity situation in Cabo Delgado province and the suspension of Total Energies' activities had a major influence on business performance throughout the year.

In a message on this year's balance sheet, Vuma said that the war in Cabo Delgado had affected some 410 companies, 38 of which had outstanding payments due to the declaration of the "force majeure" clause by the French multinational Total, following the violence in the province.

On the other, the covid-19 pandemic, led to job losses and a decline or stagnation in business.

"In 2021, business performance continued to be significantly affected by the restrictions imposed as part of the prevention and containment of the spread of the covid-19 pandemic," Vuma enumerated.

However, the business community also considers that some administrative measures have created obstacles to the business environment.

"Some reforms carried out throughout 2021 have contributed, negatively, to the performance of the business sector, most notably the recent introduction of the Regulation on the Sealing of Alcoholic Beverages and Manufactured Tobacco, which appears out of step with the reality of the business sector," Vuma stressed.