The economic and financial crisis in Mozambique has led almost half of the 3,000 civil construction contractors to be in a situation of pre-bankruptcy, and companies have been forced to lay off workers because of lack of work, the president of the Mozambican Federation of Contractors said on Wednesday in Maputo.
Manuel Pereira told Radio Moçambique that the government has no open public tenders for construction works, that without works there is no money, which is why 1500 companies are almost bankrupt and almost all the workers have been laid off.
During a preparatory session for a meeting to be held next week that the contractors have scheduled with the President of the Republic, Filipe Nyusi, the president of the Mozambican Federation of Contractors said that the government has to help companies in the sector, “given that it was the government that granted the licenses.”
“The government granted the licenses, so it has the right and duty to provide work to construction contractors,” said Pereira.
Mozambique has been plunged into an economic crisis caused by falling commodity prices and weak demand for the country’s traditional export products, coupled with the discovery of hidden debts taken on by state-owned companies with the state’s endorsement.