Following the government’s recent decision to centralize the import of rice and wheat, the Director-General of the Mozambique Cereals Institute (ICM), Luís Fazenda, met on Monday, February 9, with representatives from OLAM Mozambique to coordinate operational procedures under the new rules.
“The objective of the meeting was to improve the strategy for supplying the national market, ensuring that the transition to the new cereals management model occurs with maximum efficiency,” stated a press release consulted by Diário Económico.
In a Ministerial Decree, the government announced at the end of last year that it will import cereals “exclusively,” focusing primarily on rice and wheat, through the Mozambique Cereals Institute (ICM). The measure aims to curb the illegal outflow of foreign currency, guarantee market supply, and stabilize domestic prices for these essential products.
In this context, OLAM expressed its commitment to collaborate with the ICM in conducting technical training sessions, focusing on rice quality control and assurance, ensuring that the product reaching the end consumer meets the highest food safety standards.
However, in response to the measure, the Confederation of Economic Associations (CTA) warned that centralizing rice and wheat imports at the ICM could jeopardize investments exceeding USD 500 million and risk the loss of 30,000 jobs. “These measures put at risk more than 10,000 direct jobs and over 20,000 indirect jobs, potentially causing the breach of already signed international contracts, direct non-compensable financial losses, reduction of private investment, and, consequently, weakening the State’s fiscal base,” the association stated in a letter sent to the Ministry of Economy.
Meanwhile, the Industrial Association of Mozambique (AIMO) noted that the decision could have significant impacts on industrial sectors reliant on imported raw materials, highlighting one of the main risks as the loss of autonomy in the supply chain.
“The action could lead to increased costs, compressed margins, and the risk of stock shortages if delays occur in procurement, financing, or customs clearance. We expressed concern about the impacts of Ministerial Resolution No. 132/2025 on the operations of national industrial companies, stressing that the initiative will only be effective if implemented transparently, predictably, and inclusively,” the association stated.
The Competition Regulatory Authority (ARC) also warned that the government’s proposed model, besides eliminating competition and innovation in the import market for the commodities in question, introduces serious systemic risks to national food security. In other words, there is a risk of total stock shortages and an environment conducive to inefficiency and corruption.
“It constitutes a high-intensity market intervention, likely to eliminate competition in the import market, create economic dependence for downstream operators, and establish a dominant position through regulation, with potential negative effects on economic efficiency and consumer welfare,” it explained.
Nonetheless, the government authorized the creation of an advisory committee within the framework of import restrictions on 16 products, including beer, meat, bottled water, rice, wheat, and corn.
The measure is contained in Decree 51/2025 of the Council of Ministers, dated December 29, 2025, which approves import restrictions, citing the “need for effective management of available foreign exchange reserves, prioritizing the import of essential goods.” The restrictions, however, “do not apply” to products intended for humanitarian purposes.
Source: Diário Económico
