The director of the Mozambique Grain Institute (ICM) said yesterday that the mandate to manage imports of rice and wheat, granted by the Government, will combat under-invoicing, which costs the State €85.2 million annually. On 31 December, the Mozambican Government gave the ICM the mandate to manage cereal imports, specifically rice and wheat, recognising the need to eliminate the “illegal export of foreign currency through over-invoicing” of these products. According to the director, the decision also arose from problems with some companies during cereal import processes and market disorganisation, “because the State did not have accurate information nor an organised registry of operators active in rice importation or regarding the quantities imported.” “We know Mozambique is currently struggling with foreign currency issues to pay for imported goods and services.
In this process, some companies took advantage to illegally expatriate capital and foreign currency out of the country,” Luís Fazenda explained. In response, the director noted that among the measures taken, “to safeguard national production and consumption of domestic rice,” the Government restricted the cereal import process, delegating to the ICM the responsibility to manage it, operating “somewhat like the fuel sector.” “In the meeting with the importers, they understood what will happen (…). The ICM will now have information on various markets where these products are acquired, allowing for lower prices.
Once the State secures guarantees [bank guarantees] from importers, it will place the order and purchase the merchandise, which must then be sold in the national market at a fair price,” he said. Fazenda added that the facilitation process for operators through the ICM will ensure knowledge of the real price of cereals at their origin, enabling the Mozambican National Inspection of Economic Activities (INAE) to monitor and sanction price increases. “The mechanism will be transparent because there will be free competition.
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Any operator can register with the ICM and submit (…) the quantity they wish to import. The ICM will then instruct the supplier, mainly from partner states, who will guarantee the rice and wheat arrive in Mozambique,” he added. To support national production and financing lines for marketing, in addition to organising cereal storage, Fazenda stated that the ICM has a meeting scheduled for 27 and 28 January with the World Food Programme (WFP) and the Food and Agriculture Organization (FAO) in Italy, where a project will be presented. “We are in the process of mobilising resources, over US$100 million to finance production, open financing lines for production, but also [to] finance agricultural marketing and the rehabilitation and construction of warehouses,” Luís Fazenda said, adding that the support will also serve to establish a strategic reserve of over 100,000 tonnes of food to support the population in cases of extreme events or disasters.
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