Mozambique’s businesspeople have expressed “deep concern” over the viability of their operations following the government’s decision to centralise rice and wheat imports. In response, a specialised working group has been formed to engage in dialogue with the government. In a statement issued today, the Confederation of Economic Associations (CTA) of Mozambique revealed that it convened an emergency meeting on Monday at the request of key operators in the rice and wheat sectors to analyse the impacts of import restrictions set to take effect in February.
The CTA added that during the meeting, business operators voiced their concerns about the potential negative effects on their operations due to the government’s decision to assign the responsibility for importing cereals, specifically rice and wheat, to the Institute of Cereals of Mozambique (ICM). While the sector acknowledges the importance of boosting national production, the entrepreneurs fear that banning the import of essential raw materials, such as rice and wheat, in the current context could undermine the competitiveness of domestic industries, raise production costs, and, as a result, increase consumer prices. This, they warn, could create “barriers” that might “isolate the Mozambican market and lead to trade retaliation.” “To mitigate these impacts, a specialised working group has been established and will meet with the government in the coming days to present the sector’s concerns and seek joint solutions to ensure the sustainability of businesses and the country’s food security,” the statement concluded.
Earlier, Lusa reported that the government had assigned the ICM the task of managing the import of cereals. The government justified the move by citing the need to eliminate “illegal foreign currency exports through over-invoicing” of these products. This measure, which is part of a decree issued by the Ministry of Economy on 31 December, is expected to come into effect between February and May of this year, according to documents reviewed by Lusa.
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READ:Mozambique gives ICM control of all cereal imports The decree, signed by Minister of Economy Basílio Muhate, explains that the measure aims to “create a transparent mechanism for the importation of rice and wheat, eliminate illegal foreign currency exports through over-invoicing and invoice duplication, ensure domestic price stability—especially for cereals—and secure national supply, while encouraging local production and strengthening the state’s authority.” The ICM has been designated as the “state agent with the mandate to lead the process of importing cereals, specifically rice and wheat” into Mozambique, “without prejudice to the intervention, in accordance with the law, of its partners and other economic agents in implementing the import process.” The decree specifies that it is the ICM’s responsibility to make rice and wheat available to economic agents for domestic market sale. The measure will apply to rice imports from 1 February and to wheat imports from 1 May. Rice and wheat were included in December in a list of 16 products subjected to temporary import limits by the government, which also includes meat and offal from poultry, sugar, refined palm oil, bottled water and carbonated beverages, pasta, salt and sodium chloride, Portland cement, tiles, maize flour, beer, wooden and metal furniture, paper and cardboard products, non-alcoholic beverages, and maize grain.
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