Africa Monitor

Africa Monitor Intelligence

Mozambique: Companies Closures Alarms Government

Mainly due to the interconnection with the South Africa economy, strongly affected by the Covid-19 pandemic, the 3 provinces of the S of Mozambique (Inhambane, Gaza and Maputo), are those that reveal the most serious effects of the fall in economic activity. Globally, more than 90% of the companies saw their activity significantly affected by the economic crisis, with sharp billing losses, redundancies, suspension of contracts or even closure. In Inhambane, almost all companies show results that have fallen sharply since the 2nd quarter.The data mainly concern the formal sector, so the real impact of the fall in economic activity, which is still very dependent on businesses and workers in the informal sector, is likely to be wider. Informal workers and businesses do not, by their nature, have access to the support that has been made available to the private sector. READ MORE