25 November 2007
Maputo — Mozambique's Confederation of Business Associations (CTA) is concerned that the country's business class is not strong enough to face regional competition, particularly from South Africa.
CTA chairperson, Salimo Abdula, expressed these fears on Saturday. Speaking on the eve of 10th annual private sector conference next week, to be held under the theme "The Challenges of SADC Regional Integration for Mozambique", he alleged that the already weak business class might become even more vulnerable when, after most tariff restrictions disappear, South African businesses could intervene in Mozambique more strongly than ever before.
"The South African private sector is a challenge", he said. "We feel that South Africa is succeeding in monopolising decision making in the region about regional strategies in various areas".
However, Abdula was not calling on the government to pull up the drawbridge and retreat behind a high tariff wall. "What we need is a clear strategy for integration into the regional economy", he said. "That is the only way our private sector can grow, serving increasingly the national economy, and participating increasingly in the SADC region".
He warned that the capacity of Mozambican businesses to accumulate capital to invest in such key sectors as industry, transport or tourism is still very feeble. This, Abdula said, testified to the lack of clarity in government strategies drawn up so far to face regional economic integration, and to take advantage of the opportunities that this would offer.
Abdula wanted to see encouragement given to a diversification of production, so that Mozambican businesses would have more to export.
The private sector conference will also look at the contradictory positions taken by various segments of Mozambican society towards the opportunities and the fears arising from regional integration.
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