africa Economy Finance Government industry and commerce Mozambique Tax

Mozambique has funds to pay 17% of its debts to the private sector

The Mozambican government has 2.7 billion meticals (US$43 million) to pay off 17% of state debt to the private sector, the Prime Minister said on Monday at the closing session of the 15th Annual Private Sector Conference.

Carlos Agostinho do Rosário, quoted by Rádio Moçambique, also said that the payment of part of the debt related to the supply of goods and services is intended to “stimulate private sector participation in the national economy.”

Agostinho Vuma, president of Mozambique’s Confederation of Economic Associations (CTA), the main employers’ association in Mozambique, had warned the government and the central bank on Monday about the country’s “suffocation” and “mass bankruptcy.”

On that occasion, Vuma asked the government for a plan to pay outstanding supplier invoices, as well as a refund of Value Added Tax (VAT) that has yet to be paid.

Vuma said that the CTA is about to complete a study focused on the bankruptcy of companies in the country, the findings of which will be released “not to create panic, but to seek solutions.”

The 15th Annual Private Sector Conference was also the stage for a debate on the lack of credit from commercial banks that is accessible to small and medium-sized enterprises, given that the lowest interest rates for any loan are around 28%.

Source: Macauhub

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