Photo: Domingo<\/p>\n
The Confederation of Economic Associations (CTA) of Mozambique has urged that the suspension of Mozal, the country\u2019s largest industry, be avoided \u201cat all costs,\u201d warning of unemployment and the bankruptcy of small businesses.<\/p>\n
\u201cAvoiding the closure of the smelter at all costs must be a shared objective, given that such a scenario would bring severe economic and social consequences, including the bankruptcy of various national small businesses and the mass dismissal of workers,\u201d said \u00c1lvaro Massingue, president of the CTA, the country\u2019s largest business association.<\/p>\n
Massingue, speaking during the CTA\u2019s activity review event held in Maputo, argued that it is necessary to identify \u201cbalanced solutions\u201d to safeguard the interests of both the Mozambican State and investors, considering Mozal a \u201cstrategic asset\u201d for the country\u2019s economy.<\/p>\n
\u201cWe also believe that the renewal of the current contract, for an additional period of six to twelve months, could create the necessary space for in-depth negotiations and the building of solid, lasting, and sustainable agreements in the medium and long term, based on a clear logic of mutual gains,\u201d Massingue added.<\/p>\n
The president of the CTA also expressed the willingness of business leaders to contribute their technical expertise to the team already established by the Government to foster dialogue that brings \u201csolutions based on dialogue, trust, and predictability.\u201d<\/p>\n
Regarding the CTA annual activity review, the business representative stated that Mozambique\u2019s private sector experienced a \u201cslight improvement\u201d in the macroeconomic environment, despite persistent challenges that led to an economic stagnation in the third quarter of 2025, at least 52%, compared to 30% in 2024, reflecting the \u201curgency of structural reforms\u201d capable of unlocking the country\u2019s potential.<\/p>\n
Mozal purchases almost half of the electricity produced in Mozambique and accounts for at least 3% of the country\u2019s Gross Domestic Product (GDP).<\/p>\n
The Mozambican Government said on Tuesday that a team is currently working to ensure Mozal\u2019s future does not harm any of the parties involved, following South32\u2019s latest announcement of the suspension of activities.<\/p>\n
The management of Australian company South32 announced on Tuesday that Mozal, Mozambique\u2019s largest industry, will suspend activities and be placed under care and maintenance from 15 March 2026, due to the lack of a new electricity supply agreement.<\/p>\n