Mozambique: Increasing Domestic Production Crucial for Attracting Foreign Currency - Chapo

Marracuene — Mozambican President Daniel Chapo believes that increasing domestic production and exports is crucial to boosting the availability of foreign currency, particularly US dollars.

The country's Confederation of Business Associations (CTA) has been warning that the shortage of foreign currency (particularly of US dollars) is one of the main constraints on the efficient operation of productive sectors, particularly manufacturing, commercial agriculture, tourism, mining, and logistics. The shortage has been leading to partial or total shutdowns of operations, job losses, and reduced tax revenues.

According to Chapo, speaking on Monday, at the opening ceremony of the 61st edition of the Maputo International Fair (FACIM), in Marracuene district, increasing national production is also crucial for improving the balance of payments.

"We need to reverse our balance of payments. The capacity to generate foreign currency is directly linked to the volume of national production and exports. We will only have foreign currency if we produce more and export more. As long as we produce less, import more, and export less, there will be less foreign currency", he said.

According to the President, increased exports must be accompanied by improvements in the country's productive capacity in order to reduce import dependency and boost revenue from foreign trade.

"Gaining access to international markets also demonstrates Mozambique's ability to produce, compete, and secure a place in the global economy. Exporting is not just about selling abroad. It is about proving to the world that Mozambique knows how to produce, compete, and succeed," he stated.

Chapo also advocated for the need to increase the processing of national products to boost their value prior to export and strengthen the country's revenue-generating capacity.

He identified agricultural production as a sector with the potential to contribute to this goal, arguing that "Mozambican products should cross borders bearing a mark of quality and trust. Let us continue to produce more and export more."

According to Chapo, every national product that captures a foreign market helps to project Mozambique's image and strengthens confidence in the economy. "The government will continue working to improve the business environment by simplifying administrative procedures, digitizing public services, reducing costs, and enhancing regulatory predictability", he said.

According to Chapo, these measures should create better conditions for those who produce, invest, and create jobs, "contributing to a more competitive economy with greater export capacity."

The 61st edition of FACIM, which brings together producers, businesspeople, investors, and representatives from various countries, is taking place under the motto: "Digital and Energy Transformation towards a Sustainable Economy."

Read the original article on AIM.