The informal sector in Mozambique criticizes its exclusion from a government credit line of 10 billion meticais aimed at recovering from protests. Representing 45% of GDP, these workers feel their contributions warrant inclusion. They also express concerns over high-interest rates complicating access to loans, fundamentally affecting their businesses.
The informal sector in Mozambique has voiced strong criticism over its exclusion from a 10 billion meticais credit line designed for post-electoral protest recovery. Traders argue that such exclusion is unjust, stating that all segments of society have felt the repercussions of the protests. The informal sector, which accounted for approximately 45% of the national GDP in 2021, believes its significant contributions to the economy warrant inclusion in recovery efforts.
Despite its importance, the informal sector is overlooked in government financial plans, causing discontent among its workers. A sector representative stated, “If it does not cover them, it is discrimination. The protests covered everyone, no one escaped. So, in my opinion, it was important to cover the informal sector. 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.”
Moreover, informal workers expressed further frustration over excessively high loan interest rates, which exacerbate their financial hardships. Access to the credit line, set to be available from March 1 to September 30, requires companies to provide guarantees to banks. This condition could limit the capacity of smaller informal businesses to access necessary funding.
In summary, the informal sector in Mozambique argues for inclusion in the government’s credit line aimed at aiding recovery from protests, citing its substantial economic role. The sector demands recognition and support, stating that exclusion amounts to discrimination against those who have equally suffered. Furthermore, high-interest rates on loans present an additional challenge, limiting opportunities for many informal enterprises.
Original Source: clubofmozambique.com
