1,075 Mozambique companies declared bankruptcy in 2020

By Marta Afonso, MAPUTO Mozambique

Up until August 2020, 4,300 companies were severely affected by the coronavirus pandemic, especially in the hotel and restaurant sector, and by December 31, 2020, a total of 1,075 companies had declared bankruptcy, ‘Carta de Moçambique’ reports.

The figures were presented on Thursday (11-03) by the deputy president of the Confederation of Economic Activities of Mozambique (CTA), Maria Assunção Abdula, who was speaking to the press about the impact of Covid-19 on the economy.

Abdula said that Covid-19 had negatively affected the national economy, destabilizing macroeconomic and financial indicators and resulting in pressure on business activity, especially in maintaining employment levels.

For this reason, the CTA had decided to create, this month, a commission to help companies guarantee their continuity and leverage the national economy.

“It is a multi-sectoral commission, meant to deepen and guide reflection on the type and scope of the responses that the national private sector should make to the challenges of the pandemic,” Abdula explained.

According to Abdula, the commission will have as its mission, providing inputs to the government and the Covid-19 Technical-Scientific Commission on matters which affect the business sector, as well as proposing mitigation measures, which may include support for company cash flow.