The government of Mozambique plans to create 500,000 jobs by 2046 through the formalisation of 10,000 co-operatives and the integration of 1.5 million informal economy workers into the formal sector.
According to a report by AIM News, the targets set by the government are said to form part of the National Co-operative Development Programme (PNDC), a 20-year initiative launched in Maputo in October. In a statement, economy minister Basílio Muhate said more than 80% of Mozambicans work in the informal economy, with many facing difficulties accessing finance, inputs, technology, and markets.
The programme aims to organise these small-scale producers into co-operatives to strengthen their bargaining power, improve access to finance and technology, and find buyers for their goods.
Muhate said: “More than eight out of every ten Mozambicans work in the informal economy. Vendors, fishermen, carpenters, artisans and farmers generate income and support families but face difficulties because they operate individually. These are not complaints from people who do not want to work. They are complaints from people who work hard and end up with little.”
Muhate also stressed the need to make better use of domestic productive capacity. As well as formalising producers into co-operatives, the government plans to introduce a minimum 15% quota for public procurement of food products and services from the targeted sector.
Additionally, it hopes to encourage more processing of raw materials within Mozambique, instead of exporting them unprocessed. Supplementary measures also include local trading platforms, trade fairs, and agreements with supermarkets and other buyers.
The programme includes plans for industrial and agro-industrial co-ops, alongside measures to integrate co-operatives into the supply chains of major national projects. There are also targets for economic inclusion, with young people expected to account for at least 40% of beneficiaries and women to hold 35% of co-operative management positions.
To implement the programme, Mozambique’s government plans to introduce regulations implementing the General Co-operatives Law this year, as well as establish a National Office for Modern Co-operatives and develop a specific tax-benefit framework for the sector.
Mozambique’s General Co-operatives Law has been developed against the backdrop of the Model Law on Co-operatives for Africa. Adopted by the Pan-African Parliament in 2024, the Model Law aims to harmonise co-operative legislation and practice across Africa and provide a reference point for those looking to implement best practices in their co-operative laws.
Main image: Street market in Ilé, Zambézia, Mozambique (Getty)
