Mozambican business leaders today acknowledged positive signs of reformist intent and ongoing efforts to strengthen economic diplomacy and mobilise financing during the first year of President Daniel Chapo’s government, despite a difficult political transition. “The new government was established in a challenging context, marked by strong political, social and economic pressures. From the private sector’s perspective, we have observed positive signs of reformist intent, particularly in the discourse on inclusive growth and economic diversification,” Álvaro Massingue, president of the Confederation of Economic Associations (CTA), the country’s largest business organisation, told Lusa.
Chapo was inaugurated as Mozambique’s fifth president on 15 January 2025 in Maputo, three days after the start of the new parliamentary term. Two days later, he appointed his government amid a tense atmosphere and protests called by electoral candidate Venâncio Mondlane, who has never recognised the results of the 9 October 2024 election. According to Massingue, the past year has been a complex transition period marked by efforts to reorganise government, as well as significant challenges arising from the instability that preceded the current government’s inauguration.
“We have also witnessed a continuous effort to strengthen economic diplomacy and mobilise financing to address the major structural problems still facing the country,” he added. Massingue noted that the government managed to stabilise the prices of essential goods, with no major fluctuations in 2025. This was achieved through macroeconomic measures coordinated with the central bank, which also helped prevent a more severe inflation spike, especially amid a complex international context.
Read Full Article on Club of Mozambique
[paywall]
“There is still joint work to be done to improve national competitiveness, reduce the country’s external dependence, and ensure price stability, creating an increasingly favourable investment environment,” Massingue said. “Economic growth observed was moderate, with important contributions from large projects and export sectors, though these remain poorly integrated into the domestic economy,” said the CTA president. He acknowledged the need for more work so these sectors can generate more jobs, especially for young people.
Despite positive gains and transformations across various economic and social sectors, the private sector also recognised that national economic growth faces “structural challenges,” making the adoption of “deep reforms” urgent to boost the economy, particularly regarding reducing excessive bureaucracy, regulatory uncertainty, and high financing costs. “Transformations have taken place, but not all have been accompanied by effective gains in efficiency or competitiveness. Therefore, this is a process that will require more time and gradual policy adjustments to achieve the desired results,” Álvaro Massingue said. The CTA president also highlighted that creating formal employment remains one of the country’s biggest challenges, since, after the post-election unrest, “many companies continue to operate in defensive mode.” It is therefore a priority for the government to guarantee social and economic stability, peace and social cohesion, and strengthen institutional dialogue with the private sector in the coming years.
[/paywall]
