MAPUTO, Mozambique President Daniel Chapo says Mozambique must raise domestic production and exports to address shortages of foreign currency, particularly the US dollar, which businesses say is disrupting key sectors of the economy.
Chapo made the remarks on Monday while opening the 61st Maputo International Fair, known as FACIM, at the Ricatla International Exhibition and Trade Centre in Marracuene district, Maputo Province.
The Confederation of Business Associations, CTA, has warned that limited access to foreign currency is affecting manufacturing, commercial agriculture, tourism, mining and logistics. The shortage has reportedly forced some firms to scale down or suspend operations, resulting in job losses and lower tax collections. 
Chapo said the country’s foreign currency position depended on its ability to produce competitively and sell more goods abroad.
“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.
He said Mozambique needed to strengthen productive capacity, cut its reliance on imports and expand export earnings in order to improve its balance of payments.
“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.
The President also called for greater local processing of agricultural and other locally produced goods before export, saying value addition would improve returns from foreign trade and create stronger revenue streams.
He said agriculture remained among the sectors with potential to increase export earnings.
“Mozambican products should cross borders bearing a mark of quality and trust. Let us continue to produce more and export more.”
Chapo said each Mozambican product entering a foreign market helped build confidence in the country’s economy and improve the country’s image internationally.
He said government would continue improving the business environment through simplified administrative processes, expanded digital public services, lower costs and more predictable regulations.
“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.
Chapo said the reforms were intended to support producers, investors and employers while building a more competitive economy capable of exporting more goods.
FACIM, Mozambique’s largest annual trade fair, brings together producers, business leaders, investors and delegations from several countries. This year’s edition is being held under the theme, “Digital and Energy Transformation towards a Sustainable Economy.”
