The Mozambican president has called for the creation of financing schemes for construction companies and greater regularity in the payment of the State’s debts to contractors, arguing that the economic recovery should lead to the strengthening of the sector.
Speaking during a meeting with the Mozambican Federation of Contractors (FME) in Maputo on Wednesday, Daniel Chapo, highlighted the importance of the construction industry to national development.
“In line with our vision for the restructuring of the economy, we believe the Federation plays an extremely important role,” he said, arguing that, as the economy shows positive signs, it is “extremely important to get domestic companies back on track”.
According to Chapo, the sector comprises around 1,200 contractors, a figure which, he said, highlights the economic significance of the activity and the need to create mechanisms to support its growth.
“There must be very clear lines of funding to nurture the domestic construction industry,” he declared.
He pointed out that the aim is for Mozambican companies to gain the capacity to compete beyond the country’s borders: “We want contractors who will one day leave Mozambique to build abroad and set the standard”.
The President also called for greater predictability in the State’s payments to companies in the sector, acknowledging the impact of delays on the execution of work.
“We must draw up a payment schedule and, as our economy improves, ensure that these delays in paying contractors do not occur,” he said.
Chapo added that the problems encountered in some projects cannot be attributed solely to the builders, linking them also to cash-flow difficulties resulting from delays in disbursements.
“These issues regarding some abandoned projects stem not only from the dishonesty of contractors, but also from payment levels,” he stated, emphasising that faster settlement of invoices would help to improve companies’ performance.
On 19 March, Mozambican contractors accused the state of accumulating debts of over 16,000 million meticais (€219.8 million) in road construction projects, warning that companies are closing down due to non-payment.
“It is a very large sum and companies have already lost capacity. Even large companies are now turning to the banks to pay salaries, which is a serious matter,” said the Federation’s president, Bento Machaila, at the time.
Source: Lusa