Mozambique greenlights tender for vehicle assembly plant under PPP

The Mozambican government on Tuesday authorised an international tender for a vehicle assembly plant under a public-private partnership (PPP), aimed at reducing import costs and improving road transport. The Council of Ministers authorised the Minister of Transport and Logistics (MTL) to launch an international public tender, under a public-private partnership arrangement, for “the selection of a private partner” to establish a vehicle assembly industrial unit in Mozambique, said Health Minister and Cabinet spokesperson Ussene Isse. Minister Isse added that the objective of establishing the plant is a measure “to address the high costs of acquiring buses, the difficulty of designing buses suited to the country’s realities, and the flexibility required for fleet renewal”.

The intention to establish a vehicle assembly plant in Mozambique has been raised repeatedly. One example is the Chinese company SG Automotive Group Co, dedicated to vehicle manufacturing, which is studying the possibility of establishing a vehicle assembly industry in Mozambique, including electric buses, with the capacity to generate 3,000 jobs, the government announced in March. A statement from the Ministry of Economy said at the time: “The delegation is in Mozambique on a 10-day mission to study the market and has expressed interest in investing in the country, with particular emphasis on the possible establishment of a vehicle assembly industry, including electric buses.” Company representatives met with Mozambique’s Minister of Economy, Basílio Muhate.

During the meeting, the Moamba Industrial Park in Maputo Province, in the south of the country, was identified as a possible location for the facility, given the initiative’s potential to stimulate the local economy and strengthen industrial development. READ:Mozambique: Chinese firm SG Automotive wants to invest in vehicle assembly plant, creating 3,000 jobs The statement added that Mozambique’s strategic geographical position and the performance of its national logistics corridors could enable the company to access not only the domestic market but also regional markets.