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Mozambique’s business sector losses $453 million in H1 due to Covid-19

MOZAMBIQUE’S business sector reported a loss of $453 million in the first half of this year 020 due to the Covid-19 pandemic, the Confederation of Economic Associations of Mozambique (CTA) announced on Thursday.

Presenting a report on the impact of the pandemic in Maputo, the vice president of the country’s largest employers’ association Alvaro Massinga said that if the pandemic evolves, losses could top $951 million by the end of the year, which will be equivalent to 7 percent of the country’s GDP.

‘In regard to the impact of Covid-19 in the business volume the report indicates that the level of business activities dropped 65 percent in the first semester of 2020,’ said Massinga.

The sector of hotel and tourism is among the most hit by the pandemic with a reduction of activities at 75 percent, he said.

The report also revealed that companies were forced to cut down their production costs including jobs at 30,000 suspended contracts by June and that if the pandemic continues the number of jobs lost until December could be at 63,000, equivalent to 11 percent of the country’s employed population.

Nevertheless, the confederation expects a slight pickup of the economy in the second half-year, following the gradual reopening of economic activities and alleviation of restrictive measures against Covid-19.

 

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