The government is preparing measures to reduce the tax burden and make it easier for agricultural producers and agri-processing companies to access lower rates for energy, water, and fuel, with a particular focus on diesel.
The announcement was made this Tuesday (14) by the Minister of Agriculture, Environment, and Fisheries, Roberto Albino, during his remarks at a high-level panel at the 21st Annual Private Sector Conference (CASP 2026), which is taking place in Maputo.
According to the minister, a proposal to reduce the Corporate Income Tax (IRPC) rates applicable to agriculture and agribusiness by 10% is also under discussion. The discussions are expected to be concluded next week. “To ensure that producers have easy access to reduced rates for energy, water, and fuel, the President of the Republic has given us a deadline to resolve [the situation] by next week,” said Roberto Albino.
The minister explained that the ongoing reforms aim to create a more favorable business environment and make the agricultural sector more attractive to private investment. “This issue of facilitating access to reduced rates for energy and fuel—especially diesel—not only for those engaged in primary production but also for those involved in processing, is part of our package of incentives to attract more private investors,” he stated.
In the same remarks, Roberto Albino noted that the level of investment in the agricultural sector remains below the scale of the problems facing the country, advocating for a mobilization of resources commensurate with the challenges and the need to reduce food imports. “If we import one billion dollars’ worth of food, we cannot replace those imports with investments of 50 million dollars per year. We will continue to face the problem, but we won’t solve it. Our approach is to invest on a scale commensurate with the problem we want to solve,” he argued.
The official also called for the private sector to get involved in supporting small-scale farmers and implementing modern irrigation methods, in order to address the climate challenges affecting agricultural activity.
During the same panel discussion, the president of the JFS Group, Francisco Ferreira dos Santos, advocated for the diversification of investments, with a greater focus on the agricultural sector and small-scale farmers, arguing that resources should not be concentrated solely on megaprojects.
The businessman also called for the creation of incentives that would allow the market to take advantage of existing investment opportunities in the country and encourage greater private-sector participation in agriculture. “We cannot be paternalistic and assume that only small farmers and the poor need help. Businesses also need capital and financing. We talk a lot about access to financing, but we talk very little about access to capital. Our sector is severely undercapitalized,” stated Francisco Ferreira dos Santos.
According to the official, the scale of the necessary investments must be proportional to the magnitude of the problems, and greater coordination between public institutions and the private sector is also needed. “We need a high degree of coordination within our public-private sector, particularly within the public sector, because this can only be achieved through full coordination from agriculture to the Bank of Mozambique, encompassing commerce, industry, and, of course, finance and the Tax Authority,” he added.
CASP 2026 plans to review projects valued at 1.2 billion dollars, according to the Confederation of Economic Associations of Mozambique. The event is expected to bring together more than 2,000 people, including government officials, business leaders, domestic and international investors, cooperation partners, academics, and civil society representatives.
About the Event
Under the theme “Produce, Transform, and Compete: Building a Strong and Resilient Economy,” the 21st CASP 2026 will take place on July 14 and 15 in Maputo. The event brings together government representatives, business leaders, business organizations, cooperation partners, financial institutions, academics, and experts with the aim of deepening public-private dialogue, assessing compliance with the recommendations from the previous edition, and identifying reforms, investments, and opportunities capable of strengthening domestic production, local processing, and the economy’s competitiveness.
The program includes panels on infrastructure, logistics, and energy; digital transformation; agribusiness and food security, tourism, industrialization and local content, human capital, access to foreign markets, financing for small and medium-sized enterprises, business resilience, and improvement of the business environment, in addition to bilateral sessions between Mozambique and Japan and between Mozambique and China, as well as forums for presenting investment opportunities and business partnerships.
Source: Diário Económico
