The Competition Regulatory Authority (ARC) is forcing sweeping changes to the sugar marketing model in Mozambique by ordering an end to the centralized system that for years concentrated the sale of the product through the National Sugar Distributor (DNA).
According to Lusa, following the regulator’s decision, Companhia de Sena announced that any company or citizen can now purchase sugar directly from the factory, without the need for intermediaries.
According to a statement released this Sunday, the sugar company notes that the measure results from compliance with the ARC’s final ruling, adding that the sales process will now be governed solely by commercial and legal criteria, including stock availability, pickup capacity, and the buyers’ tax compliance. “Direct sales are open to all interested parties, without the need for intermediaries,” the company states.
Companhia de Sena adds that, in practice, it has ceased to be part of the DNA model since 2022 and reaffirms its commitment to transparency and free competition in the sector.
“There is no exclusivity agreement or restriction on the purchase of sugar. Any duly licensed entity or interested citizen may make a direct purchase at the factory,” the company emphasizes.
The decision comes after the ARC concluded that five sugar companies were operating a cartel through DNA, a company established in 2002 to centralize the purchase, sale, import, export, and storage of sugar.
In the ruling approved in November 2025, the regulator ordered the companies involved to pay fines totaling approximately $940,000 and mandated the dissolution of DNA by December 31, 2027.
According to the ARC, the participating companies—Companhia de Sena, Maragra Açúcar, Tongaat Açucareira de Moçambique, and Tongaat Hulett Açucareira de Xinavane—were supposed to compete with one another in the domestic market, but ended up transferring pricing and commercial coordination powers to DNA.
For the regulator, the model eliminated effective competition in the sector and distorted the normal functioning of the market.
“DNA acts as a cartel, a coordination mechanism among competitors, ensuring that all factories sell sugar at uniform prices, subverting the law of supply and demand,” states the ARC’s decision.
The investigation into the sugar sector began in 2022 under the Competition Law, examining practices deemed anti-competitive, including prohibited horizontal agreements between competing companies. The case was also referred to the Attorney General’s Office for further proceedings.
