Mozambique: Companies demand solution for fuel imports

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Mozambique: Companies demand solution for fuel imports

2:43 CAT | 22 Apr 2025

FILE - for illustration purposes only. [File photo: Folha de Maputo]

The Mozambican Association of Fuel Retailers (ARCOMOC) has called on the government to bring rapid solutions to the current crisis that the companies are facing in order to import fuel.

The government has acknowledged that the difficulties in obtaining guarantees from commercial banks to import fuel is the a result of a shortage of foreign currency, particularly of US dollars.

According to ARCOMOC chairperson, Nelson Mavimbe, interviewed for a podcast by the anti-corruption NGO, the Centre for Public Integrity (CIP), some companies operating in Mozambique are suspending labour contracts because they can no longer pay wages. “They are not operating due to the shortage of fuel”, declared Mavimbe.

“Because of this problem, there are retailers who are no longer able to fulfill their obligations. There are retailers who were unable to pay wages in March. There are operators who are suspending contracts because they can’t predict when this situation will end. It’s a really deplorable situation”, he said.

In order to solve the problem, “I think it’s extremely important for the government to be more proactive and to be more aware of the sector’s problems”, said Mavimbe.

ARCOMOC manages about 900 petrol stations. According to CIP data, of the 30 companies that are responsible for importing and distributing fuel into the country, only 10 are currently operating.

The shortage of foreign currency is also affecting the baking industry as some companies are facing difficulties in importing raw materials, particularly wheat. Mozambique produces very little wheat, and is thus overwhelmingly dependent on imports to make bread and pasta.

In order to address the matter, the Bank of Mozambique, in its role as regulator of the national financial system, announced the increase of the amount of foreign currency revenue that exporting companies must convert into national currency from 30 to 50 percent. However, it looks like the situation is not improving, since fuel remains in short supply throughout the country.