Mozambique’s informal sector has criticized being excluded from a 10 billion meticais credit line for post-electoral recovery, calling it discriminatory. Informal workers, who constitute about 45% of GDP, argue that all sectors suffered from the protests, making their inclusion crucial. They also highlight the burden of high interest rates on loans, complicating access to much-needed credit.
The informal sector in Mozambique has expressed strong criticism regarding its exclusion from a 10 billion meticais credit line designated for recovery from recent post-electoral protests. Traders assert that this exclusion is discriminatory, arguing that the impacts of the protests were felt across all sectors of society, including the informal economy, which constitutes approximately 45% of the nation’s GDP as reported by the National Institute of Statistics (INE) in 2021. A spokesperson for the sector 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.” Furthermore, informal workers have raised concerns over the high interest rates associated with available loans, which further complicates the business climate. Access to this credit will be available from March 1 to September 30, but banks require guarantees from companies to approve loans.
In conclusion, the exclusion of the informal sector from Mozambique’s credit line for post-electoral recovery has raised significant concerns regarding fairness and the economic inclusivity of recovery efforts. The informal sector plays a considerable role in the national economy, and its incorporation in recovery plans is deemed essential for holistic economic recovery. Additionally, the high interest rates posed by loan provisions further exacerbate the challenges faced by informal workers.
Original Source: clubofmozambique.com
