Illegal exports worth more than half of Mozambique’s GDP

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Illegal exports worth more than half of Mozambique’s GDP

12:55 CAT | 25 Aug 2025

Photo: AIM

The illegal export of goods produced in Mozambique and tax evasion is worth more than half of Mozambique’s Gross Domestic Product (GDP) annually, according to the Ministry of Economy.

According to António Grispos, Secretary of State for Commerce at the Ministry of Economy, in an interview he granted to AIM, the country loses between 10 and 15 billion dollars annually as result of the illegal export of domestic products and tax evasion.

“We must create mechanisms to ensure trust and absolute certainty that the money coming in from exports is channeled into the Mozambican financial system. Our products go into neighbouring countries, and they export them as if they were not products from Mozambique”, he said.

He explained that products such as gold, precious stones, pigeon peas, sesame, soybeans and maize are smuggled to neighboring countries, especially Malawi, Zambia, Tanzania and Zimbabwe.

“These products are then sold on, as if they were produced in those countries whereas in fact they are ours. And yet another situation is that, even when we export, some companies falsify data, change the final destination of their exports, and the money doesn’t enter the country”, he said.

“We are not a poor country, we are an impoverished country. We are a country that has not yet managed to fully exploit its potential”, he added.

Grispos believes that the smuggling of products is directly linked to tax evasion and informal trade, where a large portion of operators remain outside the tax system. He said that the government “has therefore adopted a tax incentive strategy to encourage formalization.”

“Most informal sector actors remain there, perhaps because they feel they have no incentive to formalize their operations. They need to feel the benefits of formalization. There are two things here: first, pay taxes, and then realize the benefits of that tax”, he explained.

The government, said Grispos, acknowledges that an excessive tax burden can fuel tax evasion, “and now work is under way to ensure trade that benefits both traders and the state”.

“If the tax burden is extremely high, evasion is the most logical solution for people, especially when we’re talking about low-income groups, we call for creation of a triad of advantages: formalization, fair taxation, and visible benefits for taxpayers”, he said

To reverse this situation, the government is preparing the National Integrated Marketing Policy, to be approved by December. The document will define concrete mechanisms to stem losses and strengthen the agricultural, mineral, forestry, livestock, and fisheries marketing chain.

“We are now listening to all stakeholders. We are not the owners of the truth. We are listening to farmers, fishermen, buyers, intermediaries, producer associations, traders, banks, and financial institutions”, explained Grispos.

Source: AIM