Mozambique’s Informal Sector Demands Inclusion in Recovery Credit Line

The informal sector in Mozambique is criticizing its exclusion from a 10 billion meticais credit line intended for post-electoral recovery, arguing that all sectors suffer the impact of protests. With their significant contribution to the economy, they demand inclusion and have expressed concerns about high-interest loan rates.

The informal sector in Mozambique is voicing strong criticism over its exclusion from a 10 billion meticais credit line intended for recovery from post-electoral protests. These traders assert that such exclusion constitutes discrimination, as all sectors faced the repercussions of the protests. Notably, the informal sector plays a vital role in the national economy, contributing approximately 45% to the country’s GDP, according to 2021 data from the National Institute of Statistics (INE).

The spokesperson for the informal sector emphasized, “If it does not cover them, it is discrimination. The protests covered everyone; no one escaped. At the end of the day, those who carry out a visible activity that has a direct impact on the consumer are the informal sector.” This sentiment highlights their demand for inclusion in financial assistance initiatives that affect the entirety of the population affected by the protests.

Moreover, informal workers have raised concerns regarding the high-interest rates tied to loans, exacerbating the challenges they face in the business landscape. To qualify for credit, which is set to be available between March 1 and September 30, it is required that banks receive guarantees from companies, further complicating access for informal workers.

In summary, the informal sector in Mozambique is protesting its exclusion from the government’s credit line designed for post-electoral recovery, highlighting the significant economic contributions they make. The high-interest rates associated with loans compound their difficulties, and the call for equitable support in recovery efforts underscores a pressing need for inclusivity in economic policies.

Original Source: clubofmozambique.com