"Rushed Decisions Will Worsen the Crisis": Salimo Abdula Warns Mozambican Government on Economic Missteps
The recent 43-cent cut in gasoline prices, announced by Mozambique’s Energy Regulatory Authority (ARENE), has sparked roadblocks and vandalism in Maputo and Matola, intensifying criticism over the government’s economic management. Business magnate Salimo Abdula, in an exclusive interview with TORRE.News, slammed the move as "weak and poorly timed," warning that hasty decisions risk worsening living conditions and deepening social unrest.
"Fuel prices are a critical component of essential goods pricing. Any insufficient adjustment breeds frustration and backlash, especially in a climate of high unemployment and rising inflation," Abdula said. "Without proper planning, we risk making everything worse. It’s not just about announcing minimal price cuts; we need to assess long-term impacts, or we’ll be fueling even greater public dissatisfaction."
The government’s move comes amid heightened expectations following campaign pledges by President Daniel Chapo to alleviate the cost of living. However, citizens have dismissed the minor price reduction as insignificant, triggering protests in key transport corridors. Demonstrators argue that the 43-cent decrease does little to ease financial burdens and are calling for a more substantial review of fuel pricing.
Abdula stressed the importance of a comprehensive economic strategy that includes public spending cuts and increased investment in productive sectors, rather than solely demanding sacrifices from the population. "The public sector must also tighten its belt. We need a concrete development plan with clear and feasible targets. Without this, we foster an environment of anger and distrust," he stated, noting that Mozambique’s population growth is outpacing economic expansion.
The public backlash over fuel prices raises further concerns about the government’s ability to implement meaningful economic policies. As cost-of-living pressures mount, Abdula warns that short-sighted measures without broader economic foresight will only deepen financial distress and fuel social tensions.
