AfricaPress-mozambique: The Mozambican Trade, Industry and Services Association (ACIS) on Tuesday urged a more simplified ‘lay off’ regime aimed at ensuring the survival of companies most affected by the Covid-19 pandemic.
The president of ACIS, Luís Magaço, explained the organization’s position when he spoke on the topic “Socio-economic impact of Covid-19 in the region and recovery strategies” at the first business forum of the Southern African Development Community (SADC) meeting taking place in the Mozambican capital.
Business manager Magaço, one of the most reputable economists in Mozambique, said that, among the measures necessary to keep companies in business, given the effect of the novel coronavirus, a ‘lay off’ – the temporary suspension of an employment contract – would be most welcome.
“The rapid recovery of companies from the post-Covid crisis also requires more flexible labour legislation,” he emphasised.
The government must help companies withstand the consequences of Covid-19, Magaço said, with measures such as reducing the cost of electricity in agriculture, and deferring the payment of taxes and National Institute of Social Security (INSS) contributions.
The ACIS president also called for a preference for products and goods generated by local companies, with a view to strengthening the operational and productive capacity of the national business fabric.
Magaço also suggested that company and family debt should benefit from a moratorium, offering the economy a greater margin of recovery in the face of the pandemic.
Executive secretary of the SADC Business Council, Peter Varnendel, warned of the risk of a protectionism on the part of member states in relation to their economies as a result of the impact of the Covid-19 pandemic, defending support for companies, but with a focus on integration.
“We have to avoid the temptation of protectionism and move towards regional integration,” Varnendel emphasised.
The negative impact of Covid-19 should also leverage the industrialisation of less competitive countries and commitment to the transition to a digital economy, he added.
The SADC Business Forum precedes the summit of the organisation’s Heads of State and Government, which takes place in Maputo on Wednesday and will consider a response to offers of support in the fight against terrorism in northern Mozambique.
The SADC comprises 16 states: Mozambique, Angola, South Africa, Botswana, Zimbabwe, Esswatini, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Namibia, Seychelles, Tanzania, Zambia and Comoros.
