From: barnhart@gagme.chi.il.us (Mr Aaron Barnhart)
Subject: IPS: MOZAMBIQUE: ENTREPRENEURS WANT TO PLAY A MAJOR ROLE
Originator: barnhart@gagme
Organization: Evanston, Illinois
Date: Fri, 9 Oct 1992 01:34:42 GMT

Copyright Inter Press Service 1992, all rights reserved.  Permission to re-
print within 7 days of original date only with permission from 'newsdesk'.

Reference: Trade & Finance
Title: MOZAMBIQUE: ENTREPRENEURS WANT TO PLAY A MAJOR ROLE IN ECONOMY


nyanga, zimbabwe, oct 1 (ips) -- with the end of war in sight in
mozambique, the country's industrial sector wants the local
business community to play a leading role in the economy.

the sector has appealing for government and donor community
assistance to develop local businesspersons through joint
ventures before the country opens its doors to foreign
entrepreneurs and products.

antonio matos, vice-president of the national association of
mozambique industries (aimo), says his organisation is concerned
with the manufacturing sector's status quo.

matos is among the delegates from botswana, lesotho, malawi,
mauritius, mozambique, namibia, south africa, zambia and
zimbabwe attending a three-day third region business conference
here with the them of ''business cooperation''.

''in general we support the economic reforms that have taken
place'', matos told ips thursday, in reference to the structural
adjustment programme the mozambique government is implementing
since 1986.

''but we must make sure that appropriate measures are taken
to foster the creation of national entrepreneurs who have in the
been deprived of any active participation in the economy''.

mozambican nationals are not asking to be protected, says
matos, but they need some time to adjust to the new economic
environment.

matos points out that mozambicans were never given the
opportunity to take part in the country's economy other than
being workers during portuouese colonial rule.

''all economic enterprises from the smallest to the biggest were
owned by portuguese or foreigners. the shoemakers, barber and the
bank manager were non-mozambicans,'' he says.

illiteracy, which was more than 95 percent at independence in
1975, was used as a tool to keep indigenous people out of all
economic activity, matos points out.

the situation was worsened at independence when the
portuguese settlers abandoned their businesses and properties,
and fled the country. the abandoned properties were nationalised
by the government. (more/ips)


mozambique: entrepreneurs (2)

matos says although there were no laws against private business,
the day-to-day practice at the level of bank and ministerial
officials was not very favourable to private entrepreneurs.

government intervention led to soaring inflation, growing
parallel market, lack of products in shops, while manufacturing
output stood at 80 million dollars by the beginning of the
1980's.

to redress the situation, mozambique embarked on limited
economic reform programmes, starting with the 1984 signing of
the nkomati non-aggression accord with south africa.

''it is important to remember that historically, mozambique
entrepreneurship and private sector development were never
allowed to thrive. now mozambique must tackle this lack of
business experience'', says matos.

''we need to negotiate with the government transition
measures to support national industry. we are not asking for
protectionism, but for a period of time to adjust to the new
economic environment that has been evolving'', matos stresses.

mozambique has a foreign debt of about five billion
dollars and gross national product per capita of 80 dollars.

the 17-year war between the government and the rebel
mozambique national resistance (renamo) has led to the death of
more than million people, displaced six million others and made
the country the world's poorest.

mozambique badly needs peace to develop its vast potential.

mozambican president joaquim chissano and renamo leader
afonso dhlakama were scheduled to sign a cease-fire in rome
thursday.

but, at the last minute, the renamo leader reneged on his
promises made twice in the last two months, and refused to sign
the cease-fire accord.

although the signing ceremony hangs in the balance, observers
here believe, with the intense diplomatic pressure taking place
in the italian capital, rome, dhlakama will change his mind and
ultimately sign the cease-fire accord. (end/ips/gk/apc/92)
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