Mozambique moves to curb imports to save forex, boost local industry

Africa

Mozambique will impose temporary limits on imports of bottled mineral water, pasta, flour, cement, tiles and salt as part of efforts to conserve foreign currency and support domestic industry, the government has said.

The decision was taken at a weekly meeting of the Council of Ministers in Maputo, which approved a decree setting out rules for products subject to what it described as “temporary quantitative import restrictions”.

Council of Ministers spokesperson Inocêncio Impissa said the move was aimed at safeguarding the country’s external position and prioritising the use of foreign exchange for essential imports.

“The objective is to ensure the priority allocation of foreign currency for the import of essential goods and services, while making the emerging Mozambican industry more competitive,” Impissa told reporters after the cabinet meeting.

He said the restrictions would apply to products including bottled mineral water, pasta, Portland cement, maize flour, tiles and salt, but did not provide details on the quantities to be capped, the duration of the measure or its start date.

The government also expects the policy to promote domestic production and encourage local manufacturing to replace what it considers non-essential imports.

“This decision aims to promote national production and encourage domestic manufacturing to replace non-essential imports,” Impissa said.

Mozambique has faced recurring pressure on its foreign exchange reserves, driven by high import demand, currency volatility and external shocks, prompting authorities to explore measures to manage the balance of payments and support macroeconomic stability.

According to the government, the newly approved decree is expected to help ensure more efficient use of foreign currency, protect access to essential goods and services, and support overall economic stability.

Impissa said the measure would also stimulate national production, strengthen the domestic productive base and promote competitive import substitution, leading to increased production and consumption of locally made goods.

The government stressed that the policy would be implemented in line with Mozambique’s international commitments.

“The measure is compatible with the principles of proportionality, temporality and non-discrimination as provided for in multilateral obligations,” Impissa said.

Mozambique, a major importer of consumer goods and construction materials, has in recent years stepped up efforts to boost local manufacturing and reduce reliance on imports as part of its broader economic and industrial development strategy.

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