The measures adopted by countries within the scope of Covid-19, such as the closure of borders, restriction of exits and entrances, the “mandatory quarantine” have an impact on the reduction of activities with negative implications on the demand and supply of goods and services of the projects of the extractive sector in Mozambique, mainly projects in the production phase.
The price reduction at the international level due to Covid-19 also poses challenges in attracting revenue via the reduction of project revenue and can also lead to a series of concessions by the Government to keep companies operating in the country.
Therefore, it is recommended that the government carry out a thorough analysis of the break-even points of each of the variables of companies in the extractive sector to avoid granting redundant benefits.
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