The director general of the Mozambican Oil Importer (IMOPETRO), João Macanja, admitted that there were some constraints in the fuel procurement process due to the withdrawal of the Bank of Mozambique’s contribution to the provision of foreign currency. However, he assured that these constraints do not jeopardize the supply of oil products, so much so that the market continues to show signs of resilience.
According to the News, in its Friday, September 1 edition, João Macanja was speaking during a seminar on financing fuel imports, as part of the 58th edition of FACIM.
The newspaper reports that the central bank used to contribute around 50% of the fuel import bill and stopped doing so a few months ago.
The IMOPETRO source explained that with the Bank of Mozambique’s (BoM) withdrawal from this process, there is a limitation on the availability of dollars on the market to make imports viable. “This is a recent measure that also brings some disruptions to what used to be the operating model. We know that it’s the banks’ job to do business, but we had the BoM as a backup and that made all the difference,” said João Macanja.
He emphasized that there are limitations on the availability of bank guarantees, a difficulty that is more noticeable when there is a general rise in prices on the international market. “So, when prices rise, the commercial banks say that the financing of fuel imports is done according to the repayment capacities of the companies involved in the deal, since the credit risk is transferred to the financial institutions,” he pointed out.
According to Petróleos de Moçambique (Petromoc), the challenges of the fuel supply market began when the process was led by a banking syndicate and have continued to this day, against a backdrop of liberalization. In recent years, the sector has disbursed 27.3 million US dollars in bank guarantees, which it believes is reasonable, because liberalization has brought gains, especially in terms of strengthening the negotiating power of companies compared to the banking union period.