The Competition Regulatory Authority (ARC) has warned that the model proposed by the government for centralizing rice and wheat imports at the Mozambique Cereals Institute (ICM), in addition to eliminating competition and innovation in the market for imports of these commodities, introduces serious systemic risks to national food security, i.e., there will be a risk of total stock disruption and an environment conducive to inefficiency and corrupt practices.
“It constitutes a highly intensive intervention in the functioning of the market, likely to eliminate competition in the import market, create economic dependence on downstream operators, and establish a dominant position through regulation, with potential negative effects on economic efficiency and consumer welfare,” the entity said, quoted in a document consulted by Diário Económico.
According to ARC, the problems cited by the Executive in its decision, namely currency evasion and double invoicing, can be addressed through less restrictive alternative instruments, adding that this new model “could place the Mozambican State in breach of international trade treaties and foster environments conducive to inefficiency and corrupt practices, with direct damage to consumer welfare.”
In addition, the institution concluded that, as this was a matter of economic sovereignty, the decision should not be taken at the level of a decree by the Ministry of Economy. “The structural reconfiguration of a market for essential goods and the imposition of restrictions on private initiative are matters of economic sovereignty which, due to their magnitude, national impact, and restrictive nature on constitutional rights, go beyond the regulatory competence of a simple ministerial decree.”
He therefore recommended that less restrictive alternative solutions be considered, in order to avoid food supply shortages and the flight of private investment. “If the option of a centralized model is maintained, time limits, crystal-clear transparency criteria, and objectives should be considered.”
Last week, through a Ministerial Decree, the Executive announced that it will start importing cereals “exclusively,” mainly rice and wheat, through the Mozambique Cereals Institute (ICM). The measure aims to curb the illegal outflow of foreign exchange, ensure market supply, and stabilize domestic prices for these essential products.
“The Mozambique Cereals Institute will now be the state agent with a mandate to conduct the importation of rice and wheat into the country on an exclusive basis. This means that the companies currently importing these products will now have to buy locally from the ICM,” states Ministerial Decree 132/2025.
According to the document, the measure will come into force in February for rice, while for wheat the start date will be May 1, adding that it is the responsibility of the ICM to make the products available to economic agents for sale on the domestic market. “The implementation of the decree, as well as the terms and procedures for its execution, will be approved by the minister who oversees the area of trade.”
Recently, the government authorized the creation of an advisory committee on 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 restrictions on the importation of products, citing the “need for effective management of available foreign exchange reserves, prioritizing the importation of essential goods,” but the restrictions “do not apply” to products intended for humanitarian purposes.
In the first quarter of 2025, Mozambique imported around 4.1 billion meticais worth of rice, representing almost 15% of total consumer goods purchased abroad between January and March, according to data from the Bank of Mozambique.
According to the central bank, this volume follows the historic record set in 2024, when the country imported rice worth 28.6 billion meticais, representing an increase of 38.8% compared to 2023, when imports totaled 20.4 billion meticais.
Source: Diário Económico
