Cowork Lab – Business Centers

Category: Mozambique

  • Digital Transformation in Mozambican Companies

    Digital Transformation in Mozambican Companies

    The issue of digital transformation, considered within the reality and context of Mozambican businesses, transcends the simple acquisition or adoption of new technologies. It is, above all, a profound exercise in cultural and operational re-engineering. Both Mozambican consumers and business managers are now compelled to adapt to the urgent need for efficiency, to rapidly globalizing competition, and to a market pace that demands agility on an infrastructure base that does not always support it. Currently, talking about digital transformation in Mozambique means talking about a markedly uneven path, where cutting-edge innovation coexists, sometimes even within the same sector, with a deep-seated resistance to change. And the question that arises is: are companies truly prepared for this inevitable transition?

    The Profile of a Company in Transition

    It is certain and undeniable that the Mozambican business landscape is no longer the same as it was five years ago. If a decade ago digitalization was seen as a luxury or a project for the distant future, now it is almost unanimously viewed as a matter of survival and basic competitiveness. Operational efficiency has risen to the highest priority, especially in the critical areas of management, logistics, finance, and customer relations.

    The most dynamic small and medium-sized enterprises (SMEs), often led by a young, digitally native generation, are at the forefront of this change. They demonstrate a remarkable openness to adopting cloud solutions, integrated management software (ERP), and advanced digital marketing tools. Large companies and conglomerates, especially in the natural resources, finance, and telecommunications sectors, primarily seek robustness, security, and total integration, investing substantial sums in complex systems and comprehensive data protection strategies.

    However, it is important to remember that a still significant part of the national business fabric, especially in street retail and traditional family services, continues to operate with mostly manual, analog processes, completely disconnected from any digital network. Therefore, how can we accelerate this fundamental transition without leaving behind a considerable portion of the economy?

    Key Sectors and Expressions of Change

    One way to understand this duality is to observe how digital transformation manifests itself in the sectors that most impact the economy:

    Financial Services and Retail : The financial sector has become both a pioneer and a primary driver of the broader digital transformation. Digital banking, mobile payments such as M-Pesa, E-mola, and M-Kesh, and online credit platforms have not only revolutionized access to banking services but have also profoundly altered consumer psychology and the very architecture of the business model. In retail, the omnipresence of social networks as a primary sales point, app-optimized logistics, and data-driven inventory management systems are beginning to blur, albeit slowly, the competitive gap between small retailers and large international chains.

    Agribusiness and Industry : In these sectors, the transformation is quieter but no less impactful. Platforms that connect agricultural cooperatives directly to end buyers, and traceability systems in the processing industry are increasing productivity and reducing losses, positioning themselves as a crucial means of adding value to essential products.

    Services and Logistics : In the services sector, there is a growing demand for solutions that guarantee convenience, immediate access, and personalization. Booking platforms for hotels and restaurants, health and beauty, integrated management systems for clinics and private schools, and urban mobility and express delivery applications are radically redefining the customer experience. Logistics is undergoing a discreet but vital revolution, based on GPS, intelligent fleet management, and route optimization, attempting to overcome the historical challenge of distances and deficient infrastructure .

    Perspectives for the Future

    If we observe carefully, emerging trends reveal a near future that will be shaped by three main vectors. The cloud will consolidate itself as the great enabler, allowing companies of all sizes to access powerful enterprise software without massive capital investments, operating under a subscription model. Data security (cybersecurity) will definitively cease to be a topic confined to technical departments and become a central strategic concern for all managers, as operations and data transform into a more valuable asset .

    Finally, artificial intelligence will begin to make its entry more consistently, first in large corporations, to automate tasks such as data analysis, customer service (advanced chatbots), and content creation, promising a quantifiable leap in productivity.

    Obstacles and Promises

    It is true that challenges remain, especially considering the cost and still inconsistent reliability of broadband connectivity, the acute shortage of skilled talent, and the cultural inertia in many established organizations. However, it would be unfair to talk about digital transformation in Mozambique without acknowledging the progress already made and the potential that is emerging. The massive adoption of smartphones has created a unique foundation; competitive pressure and the new generation of digital consumers are natural accelerators.

    Companies that manage to combine a clear vision, phased investment and, above all, leadership committed to cultural change, will not only survive but will define the new standards of their sectors. The question, then, is not whether digital transformation will happen, but which companies will lead it and reap its rewards, contributing to a more modern, efficient and connected Mozambican economy.

  • SUCCESS STORIES OF AFRICAN STARTUPS

    SUCCESS STORIES OF AFRICAN STARTUPS

    For a long time, talking about global innovation meant talking almost exclusively about Europe, the United States, or, more recently, Asia. Today, that map is changing. Africa has ceased to be merely a consumer of imported solutions and has begun to assert itself as a fertile ground for technological creation, innovative business models, and entrepreneurship adapted to complex realities. The success stories of African startups show that innovation is not born only in favorable contexts; often, it is precisely from difficulties that it emerges. In this context, “success” goes beyond financial impact and is also measured by the ability to scale a model that solves a pressing problem, generate tangible impact, and adapt to fragmented realities.

    But what explains this growth?

    Unlike more mature ecosystems, where innovation often improves what already works, many African startups were born to solve structural problems such as limited access to financial services, fragile health systems, inefficient logistics, economic informality, or lack of infrastructure .

    It is in this context that solutions like M-Pesa in Kenya emerge, revolutionizing access to financial services by enabling money transfers via mobile phone in a country where a large part of the population did not have a bank account. More than just a successful startup , M-Pesa has become a classic case of social innovation with global impact and a perfect example of leapfrogging : the absence of traditional banking infrastructure was not an impediment, but the catalyst for a more agile and inclusive solution, born directly in the digital age.

    The same logic applies to fintechs like Flutterwave (Nigeria), which simplified digital payments between African countries and connected local businesses to international markets, or Wave (Senegal), which became the first unicorn in Francophone Africa by drastically reducing mobile money fees .

    Climbing in Africa: how to proceed?

    Scaling a business in Africa is not simple. Each country has its own currency, regulations, language, and consumption habits. Paradoxically, it is this fragmentation that has made many African startups more resilient and creative, forcing them to develop flexible and adaptable models from the outset.

    Andela , for example, began as a programmer training program in Nigeria and has transformed into a global platform for technological talent, connecting African professionals with companies in Europe and the United States. Its success lies not only in technology, but in its ability to identify, train, and export African human capital as a global asset.

    Another example is mPharma , founded in Ghana, which reorganized pharmaceutical supply chains to make medicines more accessible and predictable. By operating in several African countries, the startup learned to navigate complex regulatory systems, a skill that has become a central part of its value. This need to operate in multiple jurisdictions has led many of these companies to develop operational models built to be quickly configured and adapted to new markets, an unexpected competitive advantage born from complexity.

    Technology with economic and social impact

    A common characteristic of successful African startups is the organic combination of economic viability and social impact. This isn’t about philanthropy, but about sustainable business models that solve concrete problems. These companies embody the concept of profit with purpose.

    Platforms like Wasoko in East Africa optimize the distribution of essential goods for small urban traders, while mobility startups like MAX.ng are reinventing urban transport and betting on electric solutions on a continent where mobility is a daily challenge. In the crucial agricultural sector , companies like Twiga Foods (Kenya) connect small farmers directly to retailers through a logistics and financing platform.

    These companies not only generate profit: they formalize economies, create jobs, reduce costs, and increase efficiency in key sectors. Social impact is not a byproduct; it is the premise of the business model.

    The role of investment and international visibility

    In recent years, investment in African startups has grown consistently, particularly in fintech , healthtech , agritech , and logistics. International funds have begun to view the continent not as a “risky market,” but as a market of untapped opportunities with potentially high returns.

    The influx of foreign capital brought scale, but also demanded greater professionalism, transparency, and a long-term vision. Simultaneously, a generation of local venture capital funds and angel investors is emerging, often founded by entrepreneurs who sold their startups . This phenomenon is creating a virtuous cycle of reinvestment of knowledge and capital within the continent itself, a sign of a maturing ecosystem. At the same time, success stories have begun circulating internationally, breaking stereotypes and repositioning the continent as a relevant player in the global innovation ecosystem.

    So what do these cases teach us?

    More than just celebrating names, the success stories of African startups show that:

    1. Effective innovation begins with solving real, structural problems.
    2. In environments with limited infrastructure, simple solutions can have a massive impact through leapfrogging .
    3. Scaling in fragmented and challenging environments forces the creation of more robust, flexible, and therefore more globally competitive models.
    4. Technology and social impact are not opposites, but pillars of the same sustainable business model.
    5. Africa is not a single market, but a network of interconnected opportunities, where multinational experience is an advantage.

    A future still under construction.

    startup ecosystem still faces significant challenges: limited access to local early-stage funding, institutional weaknesses in some countries, unequal infrastructure, and a lack of consistent public policies to support entrepreneurship are barriers that still need to be overcome on the continent.

    Nevertheless, the trajectory is clear and bodes well for a bright future, as more success stories emerge, more entrepreneurs are inspired, more investors become interested, and more solutions are created from within the continent itself. Ultimately, the success stories of African startups tell not only a story of companies that have grown, but also speak of a continent that is claiming the right to innovate with its own tools, for its own challenges.

  • Trade partnerships between Europe and Mozambique

    Trade partnerships between Europe and Mozambique

    Trade relations between Europe and Mozambique have deep roots and have evolved over the last few decades, keeping pace with political, economic and technological transformations in both the African and European continents. Today, this relationship finds its main pillar in the Economic Partnership Agreement between the European Union and the SADC-EPA region.

    The agreement, in effect since 2018, establishes a more stable, legally and commercially binding relationship, offering various tariff exemptions for Mozambican products in the European market. In return, Mozambique opens its market gradually, allowing sensitive sectors to adapt over several years.

    In addition to tariff reductions, the EPA includes technical cooperation to modernize sanitary standards, strengthen industrial competitiveness, and improve the quality of national products, an essential aspect for Mozambican entrepreneurs seeking to expand into the European market.

    Alongside the EPA, other partnership opportunities are expanding the European presence in the country. The Global Gateway Strategy, launched by the EU in 2021, mobilizes funding for digital transformation, smart infrastructure, connectivity, and resilient public services. EuroCam , the European Chamber of Commerce in Mozambique, has also played a crucial role in bringing European and Mozambican entrepreneurs closer together, facilitating investments, business missions, networking , and access to export and financing opportunities.

    But what is really at stake in this relationship that articulates so many layers of cooperation?

    The Economic Partnership Agreement as a Central Framework

    To understand the entire framework of trade partnerships between Europe and Mozambique, it is essential to begin with the EPA (European Trade Agreement), which serves as the foundation for the commercial architecture between the two parties. This agreement shapes the environment that allows for the expansion of Mozambican exports.

    The impact of the agreement can be seen in the composition of exports to the European Union. Aluminum continues to lead by a significant margin, driven by Mozal’s operations, followed by coal and a diverse range of agricultural products, such as sugar, tobacco, cashew nuts and tropical fruits, as well as fish and processed wood. Some of these sectors face structural limitations, such as low productivity or certification difficulties, but the European market remains a key destination, especially in areas where added value can grow significantly.

    At the same time, Europe remains one of the main sources of goods essential to the functioning of the Mozambican economy. Industrial machinery, electrical equipment , vehicles and parts, fertilizers, software and hardware technologies, pharmaceuticals, and specific food products make up a list that highlights not only the dependence on European capital goods, but also Europe’s role in the country’s technological modernization.

    Trade Trends and the Weight of Economic Flows

    When we look at the big picture, the numbers help to clarify the scale of this relationship. Between 2020 and 2024, Mozambique exported approximately US$5.3 billion to the European Union, consolidating the European bloc’s position as one of its most important partners. This trend reinforces the idea that trade partnerships between Europe and Mozambique are now a structural anchor of the national economy.

    Alongside exports and imports, European direct investment plays an equally decisive role. European companies and institutions have a significant presence in the energy, infrastructure, agriculture and agro-industry , banking, and digital technology sectors. The EU reinforces this presence through instruments such as the Global Gateway, the Multiannual Indicative Programme, and financing from the European Investment Bank or Proparco , creating an ecosystem that both supports and equally demands greater local capacity.

    Mozambican Exports

    Despite the economic importance of exports, many products continue to leave the country with a low level of processing, which significantly reduces the potential for generating skilled jobs and creating domestic value. It is precisely at this point that several strategic sectors within cooperation gain depth and importance for Mozambican entrepreneurs.

    In agriculture, specific partnerships aim to improve value chains such as cashew nuts, horticulture, or sugar, investing in certification, traceability, and access to niche European markets. In energy, the green transition has made Mozambique a highly relevant territory for European investment in solar, wind, and smart grids. In the fisheries sector, exports of shrimp and frozen fish remain robust, supported by sustainable management and control programs.

    Opportunities, Reforms and Competitiveness

    Looking to the future, trade partnerships between Europe and Mozambique remain among the most important pillars of national economic development. The continuity and deepening of this relationship will depend on the country’s ability to diversify exports, increase domestic competitiveness, and capture growing European interest in sustainable and strategic sectors.

    When properly leveraged, these partnerships act as accelerators of economic transformation. They also allow entry into larger markets, raise production standards, provide competitive financing, and facilitate the transfer of technology and specialized knowledge. Thus, the challenge and the opportunity lie in transforming this framework into real engines of innovation, industrialization, business capacity building, and sustainable growth, consolidating the Mozambican economy on a more robust level aligned with global demands.

  • Consumption Trends in the Mozambican Market

    Consumption Trends in the Mozambican Market

    The issue of consumption, in the context of the Mozambican market, has never been simply about satisfying needs: it is, above all, a continuous exercise in adaptation. The Mozambican consumer adjusts to the rising prices of basic necessities, the fluctuating currency, and the pace of the economy, which sometimes promises growth and sometimes stagnate. Today , talking about consumption in Mozambique means talking about cautious choices, but also about constantly changing aspirations and a society learning to consume in new ways. And the question that arises is: where are these changes taking us?

    The profile of the Mozambican consumer

    It’s undeniable that Mozambican consumers are no longer the same as they were ten years ago. While price once dominated all decisions, it now shares its place with other factors. Quality is beginning to be valued, especially in food and services; cultural identity has gained traction, paving the way for a growing awareness of consuming local products.

    Urban youth, more connected, informed, and cosmopolitan, are setting many trends today. They are more open to e- commerce , mobile banking , and the consumption of experiences, not just material goods. Meanwhile, the emerging middle class, especially in cities, seeks comfort and convenience , driving demand for private healthcare, quality education, and a variety of leisure activities.

    However, it’s important to remember that approximately 61% of the Mozambican population still lives in rural areas, dependent on agriculture, which, although it employs the majority, has a low share of GDP. So how can we balance these two distinct consumption realities?

    Main consumer sectors in Mozambique

    One way to understand this balance is to observe how it manifests itself in the sectors that most shape the daily lives of Mozambican consumers:

    Food: Food takes a huge toll on family budgets, and food inflation weakens choices. At the same time, it opens up space for innovation in agribusiness and the processing of local products. In cities, demand is twofold: on the one hand, people seek fresh, local foods, such as vegetables, seafood, and meat; on the other, they seek processed and imported products, especially from South Africa. The expansion of supermarkets and department stores, including foreign chains, reveals a changing market. Today’s shelves offer everything from Indian textiles and school supplies, Chinese electronics , to Portuguese food and beverages.

    Technology: The mobile phone has become simultaneously a wallet, a store, and a place to socialize. Mobile payment apps like M-Pesa and E-Mola are entrenched, with usage becoming increasingly prevalent. Other apps, geared toward gaming or physical activity , are also gaining traction. At the same time, e- commerce is growing steadily, with a projected annual growth rate of 8.5% through 2029, according to Statista .

    Clothing and lifestyle : This sector reflects an interesting duality: on the one hand, imported brands continue to carry status; on the other, national brands offer identity and pride. Although still in their infancy, these brands are beginning to win over employed and informed youth. Still, it’s impossible to ignore the omnipresence of imported secondhand clothing, affordable and dominant, although it coexists with the demand for original international brands.

    Services: In services, there is an increasingly notable demand for gyms, clinics, pharmacies, private schools, restaurants, and resorts. It’s not just about spending, but also about investing in well-being. Private healthcare and education, including insurance, are a priority for the middle class, even in a context of limited income. This creates an internal consumption dynamic that offers concrete opportunities for attentive investors. And these dynamics, when analyzed together, allow us to foresee broader trends that are already beginning to reshape the future of consumption in the country.

    Prospects for the future

    If we observe closely, emerging trends reveal a future that is already here. Digitization is irreversible: mobile payments are routine, and online shopping is beginning to gain more confidence. Sustainability is emerging as a value to consider, especially among young urbanites, even in a market with reduced purchasing power, which can become an opportunity for innovative brands. The issue of informality , which continues to dominate commerce, is already showing signs of transition, especially in sectors linked to retail and technology. And, perhaps more transformative, changes are also beginning to emerge in rural and peri-urban areas. Services previously restricted to cities are beginning to expand to these areas, reducing asymmetries and expanding consumption potential. Finally, there is a silent but notable movement : the appreciation of ” Made in Mozambique” products , which restores a dimension of collective identity to consumption .

    Obstacles and promises

    It’s true that challenges remain, but it wouldn’t be fair to talk about consumption in Mozambique without recognizing the opportunities. Agribusiness offers vast horizons; digital penetration opens markets; innovation in retail can bring producers and consumers closer together in unprecedented ways. The tourism sector, housing, and even renewable energy are open doors to creating new ways of consuming and living. The question, then, is not whether there will be growth, but who will be prepared to lead it .

    With a predominantly young and urbanizing population, the next three to five years are expected to see an increase in demand for digital solutions and experiences related to leisure, fashion, and technology. Brands that successfully combine convenience, fair pricing, innovation, and cultural pride will win the trust of a country undergoing constant transformation.

  • Business Acceleration and Incubation: What is it?

    Business Acceleration and Incubation: What is it?

    The dissemination of business incubation and acceleration practices around the world, although apparently new, is an old reality that has implied a new dimension in the theory and practice of business management as we currently know it. So, what is it and what is it for? The need to improve management and assist the creation and growth of startups has become increasingly important, in an environment of technological development and growing competition, marked by globalization and the open market. This reality provides an opportunity for early-stage startups to maximize their chances of success by shaping specific incubation strategies that combine several complementary incubation tools. This includes, for example, the provision of marketing assistance, help with day-to-day business operations, networking activities, internet access or help with accounting and liaison with strategic partners.

    To establish a successful startup, entrepreneurs often look for business programs that can help their business growing. In this way, incubators and accelerators are the chosen entities or programs that aim to boost the successful development of newly created companies, increasing their probability of survival and growth. Incubators and accelerators must allow a smooth start and facilitate the sustainable growth process for startups. An incubator helps entrepreneurs develop business ideas, while accelerators accelerate the growth of existing companies with a minimum viable product (MVP). Incubators operate within a flexible timeframe that ends when a company has an idea or product to present to investors or consumers. The timeline for accelerators is usually a few months during which the entrepreneur receives guidance, funding and help.

    Business acceleration or incubation?

    Accelerators

    The purpose of accelerators is mainly networking, mentoring and resource allocation to trigger business success. A company’s time at an accelerator typically ends with a presentation sharing the growth and development they have achieved during the weeks or months on the program. It is important for every entrepreneur who wants to enter this path to carry out a self-assessment to consider whether he is at the right time and stage to join this type of program or, perhaps, an incubator would be the most appropriate. If the company is growing rapidly, an accelerator may be the right choice. If your growth plan is still in development, an incubator might be a better choice.

    The emphasis at accelerators is on rapid growth and successful product launches. At the end of the period, entrepreneurs have the opportunity to make a proposal to funders for further funding. An accelerator is therefore best suited for startups that want to reduce their time to market .

    Incubators

    Incubators focus on equipping the entrepreneur with the business model, plan and guidance needed to confidently present their business plan to investors. In the incubators , participants spend their time in contact with other entrepreneurs, developing their ideas, adjusting their product or service to the market and perfecting the business plan. This process usually takes a few months and ends with a demonstration in which the entrepreneur presents his business idea to investors . For those interested in this type of path, it is necessary to check that they have the right mentors and guidance for your needs and those of your business. If the problem is just funding, an accelerator may be the most appropriate.

    The important thing to note here is that the startup incubation mechanisms act as models of evolution, allowing the entrepreneur to build the stages of his business in a solid way.

    In an increasingly competitive market, many entrepreneurs, especially beginners, have already understood that their success depends on being integrated into structured business acceleration and incubation programs to guarantee more chances of consolidation in the market.

    Factors to consider when choosing business acceleration and incubation partner

    Startup maturity stage : a startup still in the initial stage of the idea will have very specific needs resulting from this reality, very different from those of a startup already present in the market. Often, the model of an incubator can be more suitable for companies that are still in the idealization phase. An accelerator has selection criteria that normally combines market assessment , technological differentials and the potential to scale the business, which is not yet present in startups that are at the idea stage.

    Alignment of values : Incubators and accelerators are more successful when they are able to align their mission and values with the vocation of startups that you want to guide . Consequently, so are startups. Therefore, it is imperative for entrepreneurs to know well the mission, values and focus of action of accelerators/incubators.

    Selection and graduation policy : incubators and accelerators, when selecting startups, apply criteria that carry their values and focus of action. In addition to these criteria, entrepreneurs should be aware of other applied factors such as, for example, accelerators that also examine the potential for rapid growth (scalability), team composition and experience , possible existing prototypes, intellectual property and market opportunities.

    Nature and scope of services provided: Incubators and accelerators typically offer five services and resources such as access to physical resources, space support , access to financial resources, direct technical support to entrepreneurs, and access to networks of relevant contacts. Organizations with fewer than four of these services technically should not be considered incubators.

    Partner networks : One of the most critical components for incubators and, in particular, accelerators with a focus on market traction, are partner networks , including mentors, corporate partners and service providers . Many incubators and accelerators, for example, include the provision of services such as legal advice, accounting, financial management, and others.

    CONCLUSION

    Accelerators and incubators act in the markets as vital mechanisms for the promotion of innovation and sustainable economic development. Many of the initiatives and projects that can be accelerated have greater chances of survival in the future , and it is up to the entrepreneur to study the individual possibility of joining each of the programs taking into account the previously mentioned factors such as: the stage of maturity of the entity; o the alignment of the entrepreneur’s needs with the mission, objective and focus of the action ; selection and graduation policy ; the nature and scope of the services provided , as well as the network of partners. 

  • Social Responsibility Plan: How to do it

    Social Responsibility Plan: How to do it

    What is Social Responsibility?

    Social responsibility means that companies, in addition to making money for shareholders, must act in a way that benefits society. A company with social responsibility aims at the well-being of everyone, both the employees and the people who consume its products and/or service including ethical responsibility, by ensuring fair business practices across the board, philanthropic responsibility, by giving back to the community and donating to relevant causes, economic responsibility which implies taking good and sustainable business and financial decisions and environmental responsibility by engaging in environmentally friendly practices and reducing their footprint in the environment.

    Why is a Social Responsibility Plan Important for Companies?

    Effective social responsibility campaigns not only benefit the designated causes, but the companies involved as a whole. Studies indicate that companies with strong social responsibility programs have better morale, greater efficiency, a stronger public image and better employee loyalty. Another factor has to do with the market and the way of consuming that has been changing every day. Today there are new concepts and the consumer has been more demanding in relation to the product they consume and the values that the same product adds. People are more concerned about purchasing products and services from companies that care about their employees, that pay what is owed, that care about the environment and the surrounding community, meaning that they cause positive impacts inside and outside of the company. When an organization shows that it is committed to the community inside and outside its company, people feel more secure and confident to do business with it.

    Read Also: Oil and Gas in Mozambique: Opportunities for busines…

    How Can Companies Launch Meaningful Social Responsibility Initiatives?

    These are some ideas that can help you create a social responsibility plan that allows you to achieve the desired impact:

    1. Choose a cause that is authentic to your brand.

    The first priority should be to find an initiative that matches your company’s mission and vision . By choosing a cause that the company is committed to in the long term, your initiative will have more meaning and greater impact.

    2. Engage customers.

    Customers want and expect brands to be involved in social issues; adopting socially responsible policies goes a long way towards attracting and retaining customers, which is essential for a company’s long-term success. In addition, people will normally willingly pay for goods, knowing that part of the profits will be channeled to social causes.

    3. Motivate employees.

    Do not hesitate to encourage and promote employee participation in charitable initiatives. It is well known that when employees participate in programs that are important to them, their relationship with the company is strengthened and they are more dedicated to their own work functions.

    4. Partner with charitable organizations.

    It is also important to partner with one or more non-profit organizations, community-based if possible. These partnerships allow your company to leverage your knowledge of the issues and to create real and lasting change.

    It is also important to understand that for a better connection with your target audience these campaigns must be publicized (through traditional means or through social networks), which can help to amplify your message.

    How to be a Socially Responsible Company in Practice?

    Many consumers are expecting to see positive attitudes and behaviors from their favorite brands and to be able to identify them in their daily lives. Here are some forms of social responsibility in vogue that you can apply to your company as well.

    1. Reduce environmental impact.

    This is a strategy widely used by many companies. Opting for less polluting raw materials, cataloging and separating waste, reusing and recycling, supporting cleaning campaigns, donating to environmental organizations, are some examples to follow.

    2. Educate the target audience

    Who doesn’t need financial education? Or nutritional education? Or promoting road safety? Depending on your area of activity, you can choose an impact theme and give valuable tips that can add knowledge to your consumers.

    3 . Voluntary actions.

    How about encouraging employees to do volunteer work? A practical tip is to visit homes for children and the elderly. Just a simple visit can do good for the people who live in these places.

    4. Make donations to social institutions.

    There are several institutions whose main objective is to promote a better life for the less privileged communities in our country. It is important to help them stabilize financially. This money will be used in various programs and projects that bring good food, education, health, clean water and other basic survival items to those who have very little.

    Read Also: How to apply in a public tender in Mozambique?…

    How to Choose the Social Institution?

    Making a financial donation to an NGO is much more practical for everyone in your company and helps the community a lot. The question is: how to choose the institution? How to choose the one that will guarantee the money is applied in the desired purpose? Here, the ideal is to research the history of this NGO. The more information you have about the institution, the better. Also check if it provides an audit of accounts, if it is possible to obtain a certification that the donation really went where it should go, among several other factors that must be taken into account.

    Adopting socially responsible practices increases customer retention and loyalty, increases employee engagement, enhances brand image, attracts investment opportunities and top talent, and makes a difference to your bottom line. However, it is important to emphasize that social responsibility must be something true and voluntary. Brands must transmit to the public that its desire to contribute to the society is real and sincere.

    Read Also: NGOs in Mozambique

    What is a social responsibility plan and why should my company have one?

    A social responsibility plan is a document that outlines and formalizes a company’s voluntary actions that benefit the community, employees, and other social areas of interest. This type of plan helps strengthen the company’s reputation, increase employee and customer loyalty, and add a distinctive value to the brand.

    How do I choose the right cause for my company?

    The main concern when designing a social responsibility plan is choosing a cause that aligns with your company’s mission, values, and purpose. This makes the commitment authentic, long-lasting, and even more meaningful.

    How can customers and employees be involved in the social responsibility plan?

    Customers can be engaged through campaigns where part of the proceeds from sales go toward social initiatives or causes—this builds greater loyalty and identification with the brand. As for employees, they can participate as volunteers or in internal initiatives, which strengthens their bond with the company and fosters a sense of pride and involvement.

    What practical actions can be included in the social responsibility plan?

    Companies can implement various actions such as donating to transparent local NGOs, encouraging employees to take part in volunteer work, running educational campaigns on topics like finance, nutrition, or safety, and launching environmental initiatives such as recycling, waste reduction, or community clean-up efforts.

    How can I ensure the partner organization is actually using the resources properly?

    Ideally, research the NGO’s track record: check whether it provides reports, audits, or certifications that confirm the donated resources are being used according to the intended goals. This helps build trust and credibility.

  • Export of Mozambican Products

    Export of Mozambican Products

    In a world where markets are increasingly interconnected and competitive, the ability to export goods and services with quality, consistency, and added value has become one of the most strategic assets for any country. In Mozambique, exports represent a crucial path to diversify the economy, create jobs, and generate new opportunities. However, this path—though promising—is far from simple. Despite the abundance of natural resources, the uniqueness of local products, and the talent within the country, Mozambique still lacks the structure, strategic vision, and continuous technical support needed to enhance the export of Mozambican products and position the country as a more competitive player in global markets.

    According to UN COMTRADE data, in 2023, Mozambican exports reached US$8.28 billion. The same data also shows that India, China, and South Africa were the main trading partners. The bulk of exports were mineral fuels (58%), aluminum and its derivatives (15%), and ores, slag, and ash (6%). These data demonstrate the significant weight of extractive resources in the trade balance, but they also raise a fundamental question: how can Mozambican products be diversified and valued in a context of accelerated globalization?

    Historically, Mozambique has exported agricultural products such as cashew nuts, sugar, cotton, pigeon peas, and, more recently, bananas and coconuts. In the fishing sector, shrimp, lobster, and frozen fish continue to be highly sought-after products, especially in Europe and Asia. More recently, the country has become known for exporting mineral resources such as coal, natural gas, graphite, aluminum, and precious stones, positioning itself as a strategic supplier of raw materials to the most industrialized economies.

    Where are Mozambican products exported to?

    The geographic distribution of export destinations is diverse, focusing primarily on countries in the SADC region such as South Africa, Zimbabwe, and Malawi, alongside other major trading partners such as India, China, Portugal, France, the Netherlands, the United Kingdom, Belgium, and the United States. In this context, Mozambique has benefited from important preferential trade agreements, such as the SADC Trade Protocol, the Economic Partnership Agreement with the European Union (EU/SADC EPA), the AGOA Agreement with the United States, and the WTO’s “Everything But Arms” system, which allows quota- and tariff-free exports to several developed markets.

    But how, in practice, can an entrepreneur place a Mozambican product abroad?

    Exporting from Mozambique requires preparation, formalization, and structure; three essential elements for any entrepreneur or company wishing to compete in the international market. To benefit from the advantages offered by preferential trade agreements, it is necessary to meet several fundamental requirements:

    1. be formally registered as a foreign trade operator;
    2. possess a certificate of origin proving that the product was actually produced in Mozambique or the SADC region;
    3. use the Electronic Single Window, a system that centralizes and simplifies customs and logistical procedures, making the export process , in theory, more agile and transparent.

    THE Compliance with rules of origin, such as the use of local raw materials or substantial processing of the product within the country, is crucial to ensuring access to tariff exemptions in preferential markets. These rules allow, for example, a product manufactured in Mozambique, even if it contains imported components, to be recognized as being of Mozambican origin, provided it has undergone sufficient processing in the country.

    However, not everything is easy. Bureaucracy, logistical costs, the difficulty in obtaining technical certifications, and the challenge of price competitiveness continue to be obstacles for many. Even so, sectors such as agroprocessing, handicrafts, and natural resources have shown resilience and growth potential.

    What about new trends? What products are gaining traction?

    In recent years, products such as organic honey, coffee, essential oils, natural cosmetics, artisanal clothing, and furniture made from Mozambican wood have increasingly gained market share in international markets. Beyond their economic value, these goods stand out as authentic expressions of the country’s cultural identity and traditional knowledge, combining quality and sustainability on the one hand, and local creativity on the other.

    Where to look for support to enter this market?

    For support and information, APIEX (Agency for Investment and Export Promotion) and IPEX (Institute for Export Promotion) are recognized public institutions that offer legal support, technical training, logistical information, and facilitate access to international trade fairs and programs to promote national products. For many entrepreneurs, this is the first and most decisive step in placing their products in international markets.

    Despite this, logistical challenges persist, from transportation costs and infrastructure to obtaining technical certifications and price competitiveness. However, joint initiatives between the public and private sectors have been strengthening the value chain and positioning the “Made in Mozambique” seal as a synonym for quality, originality, and trust in the international market.

    How to Envision the Future?

    Despite the dominance of extractive resources, the future of Mozambican exports depends on the diversification of the production base, the valorization of local products and the creation of strong brands. The growing demand for sustainable, authentic, and ethical products in international markets can be a major advantage for Mozambique, provided there is investment in quality, packaging, necessary certification, and marketing.

  • Foreign Investment in Mozambique

    Foreign Investment in Mozambique

    Doing business in Mozambique today is a combination of resilience, risk assessment and adaptability. The local business environment continues to be marked by logistical challenges, a restricted credit market, complex bureaucracy and an institutional system that is still consolidating. On the other hand, infrastructure is gradually improving, the urban middle class is growing and there are signs of diversification in sectors such as energy, agro-industry, logistics, digitalisation and construction.

    Those who undertake business in the country know that opportunities exist, but they must navigate between structural limitations and fluctuations in confidence. And it is in this scenario that Foreign Direct Investment (FDI) plays a decisive role. FDI does not function only as an inflow of foreign capital, but above all as a catalyst that can accelerate projects , expand supply chains and introduce new technologies and skills to the local market.

    When we look at current FDI levels, we see that Mozambique continues to be a relevant destination on the African continent. In 2023, the country was the sixth largest recipient of FDI in Africa, with estimated inflows of US$2.5 billion, a clear sign that, despite the risks, large investors continue to see strategic value in the Mozambican market.

    But what is really driving these investments? And more importantly, how can local business owners, managers and entrepreneurs position themselves to take advantage of this dynamic?

    In the particular case of Mozambique, the answer lies mainly in the confidence that investors place in the country’s vast natural reserves, energy potential and the expectation of high returns in strategic sectors such as natural gas, coal, electricity and port logistics. Foreign investment has been strongly driven by megaprojects such as the exploration of the Rovuma basin, including the Coral Sul FLNG, Africa’s first floating deepwater liquefied natural gas project , as well as developments led by TotalEnergies and ExxonMobil , currently in the preparation phase for recovery.

    In addition to the energy sector, foreign interest is also evident in logistics corridors such as Nacala and Beira, which offer strategic access to regional markets, and in the hydroelectric potential of projects such as Mphanda. Nkuwa , identified as one of the largest future investments in energy generation for export. These elements reinforce the perception of Mozambique as a relevant destination for international capital, despite the institutional and security challenges that still need to be overcome.

    How Much Investment Has Mozambique Received?

    Between 2002 and 2022, Mozambique accumulated more than US$40 billion in FDI, with significant peaks between 2012 and 2013. Around 70% of this investment was concentrated in the mineral resources sector, especially natural gas, coal and oil. With the expected resumption of major projects in the Rovuma basin, it is estimated that FDI could exceed US$50 billion in the coming years.

    While the extractive sector remains dominant, diversification is underway. Sectors such as agribusiness, renewable energy, logistics, telecommunications, tourism and manufacturing are attracting increasing interest, driven by factors such as urban growth, infrastructure improvements and rising domestic and regional demand. This diversification is essential to reduce vulnerability to fluctuations in the international commodity market .

    In addition to large investments, there is promising space for small and medium-sized entrepreneurs. Underexplored value chains such as commercial agriculture, fish farming, food production, construction materials and digitalization of services are gaining momentum. Legal instruments such as special economic zones (SEZ) and industrial parks, such as Beluluane , offer tax and customs incentives that can make businesses viable and attract more agile and innovative investors.

    How Does the Legal Framework for FDI Issues Work?

    The legal framework governing FDI is relatively stable and is based on the Investment Law and its regulations. These rules provide protection against expropriations without compensation, allow for the repatriation of profits and provide tax incentives such as VAT exemptions and reduced income tax.

    How Can Local Entrepreneurs Benefit from FDI?But despite the solid legal framework, investors still face obstacles such as bureaucracy, fiscal instability, legal risks, lack of infrastructure and shortage of skilled workers. In addition, persistent insecurity in the north of the country continues to undermine confidence.

    How Can Local Entrepreneurs Benefit from FDI?

    FDI can open up multiple opportunities for Mozambican entrepreneurs, businesspeople and entrepreneurs. By integrating into supply chains created by foreign investors, local entrepreneurs can provide essential goods and services, from food, transportation and construction to consulting, security and information technology.

    Mozambican companies can also form joint ventures with foreign investors, benefiting from technology transfer, good management practices and access to international markets. Another important benefit is the development of industrial hubs and special economic zones, where local entrepreneurs can set up shop with advantageous tax conditions, easy access to energy and proximity to major international customers.

    Furthermore, FDI can boost the development of related sectors, such as technical training and specialized financial services, creating a more robust ecosystem for the growth of small and medium-sized enterprises.

    By creating an environment conducive to productive and inclusive investment, Mozambique could become an example of how foreign capital can coexist with sustainable growth and shared prosperity.

  • Business opportunities in Mozambique

    Business opportunities in Mozambique

    In recent years, Mozambique has been consolidating its position as one of the most dynamic markets in the SADC (Southern African Development Community) region. Driven by sustained economic growth, vast natural resources and reforms aimed at facilitating foreign investment, the country is emerging as an attractive destination for entrepreneurs and large corporations. Sectors such as agriculture, mining, tourism, construction and information technology are booming, creating an environment of opportunities for new investors. However, it is in the energy sector that Mozambique stands out as a true rising power.

    Business opportunities in Mozambique

    Opportunities and Challenges in the Energy Sector in Mozambique

    Mozambique currently holds one of the most diverse energy reserves on the African continent. Between natural gas, coal, hydroelectric potential and renewable energy, the country has a solid base for energy generation and export. Ongoing megaprojects, led by multinationals such as TotalEnergies, ExxonMobil and Eni, have put Mozambique on the radar of major global investors. However, despite its potential, the sector faces structural challenges, including a limited electricity grid, political instability in certain regions and bureaucracy in licensing new projects. Even so, the opportunities outweigh the obstacles, making the country a promising destination for energy investments.

    Natural Gas as a Catalyst for the New Mozambican Economy

    The discovery of significant natural gas reserves in the Rovuma Basin in the northern province of Cabo Delgado has positioned Mozambique as a major player in the global liquefied natural gas (LNG) industry. With reserves exceeding 200 trillion cubic feet, the country is poised to become the world’s third-largest LNG exporter. The projects by TotalEnergies and ExxonMobil/Eni, valued at more than $45 billion, represent an opportunity not only for large investors but also for small and medium-sized companies that can provide support services such as transportation, maintenance and logistics. However, instability in Cabo Delgado province has posed additional challenges, requiring security solutions and collaboration with the government to ensure the continuity of investments.

    Opportunities in Hydropower

    Mozambique is one of the African countries with the greatest hydropower potential. The Zambezi River, in particular, is one of the country’s major energy assets. The Cahora Bassa Hydroelectric Power Plant, with a capacity of 2,075 MW, supplies power to Mozambique and neighbouring countries such as South Africa, Malawi and Zimbabwe, but there is still untapped potential. The government has plans to develop the Mphanda Nkuwa hydroelectric project, with an estimated capacity of 1,500 MW, thus creating new opportunities for investors interested in public-private partnerships.

    Bet on Renewable Energies

    With a sparse electrification network, renewable energy has emerged as a viable alternative to expand access to electricity, especially in rural areas. The Mozambican government has been actively promoting investments in solar and wind projects, taking advantage of the more than 300 days of sunshine per year and the favorable winds along the coast. National and foreign companies are already developing solar photovoltaic parks, especially in the north and center, contributing to the diversification of the country’s energy matrix. In addition, mini-grid and off-grid projects are receiving government incentives, opening doors for investors who want to provide sustainable solutions for remote communities.

    Electrification and Energy Infrastructure

    Despite Mozambique’s high generation potential, its transmission grid is still limited. The country faces challenges in interconnecting its three main electricity grids (north, center and south), which results in recurring power outages. To overcome this challenge, the government is implementing an ambitious Integrated Energy Infrastructure Master Plan, which foresees the development of new transmission and distribution lines. This effort creates new opportunities for investments in electricity infrastructure, supply of control equipment and solutions to improve the quality of distributed energy.

    As we can see, the Mozambican energy sector represents one of the most promising markets on the African continent. With vast reserves of natural gas, untapped hydroelectric potential and ideal conditions for the growth of renewable energy, Mozambique offers a diverse range of opportunities for investors of all sizes. In addition to the favorable economic environment, the country has a growing market, a competitive tax regime and incentives for new businesses. The infrastructure, although still developing, can be modernized, and the availability of qualified labor reinforces the attractiveness of investment. Despite regulatory and, above all, security challenges, the growing international interest and the government’s commitment to facilitating business consolidate Mozambique as a strategic destination for those seeking expansion in a sector vital for the future.

  • Cooperation Agreements between Portugal and Mozambique

    Cooperation Agreements between Portugal and Mozambique

    Over the past few decades, Portugal and Mozambique have been consolidating their bilateral relations through a series of agreements aimed at fostering cooperation in several strategic sectors. The areas covered include the economy, trade, industry, health, education and, in particular, the prevention of double taxation, promoting a more favourable business environment. These agreements between Portugal and Mozambique establish the basis for mutual development and encourage the exchange of goods, services and investments between the two countries. Since the signing of more than 30 bilateral agreements, both governments have sought to increase economic and trade integration.

    Historical Context of Bilateral Relations

    The relationship between Portugal and Mozambique has deep historical roots, dating back to the early 16th century, when the first Portuguese navigators reached the coasts of East Africa. Over centuries of colonization, this relationship evolved, culminating in Mozambique’s independence in 1975. After a period of estrangement in the early years of independence, relations began to warm up in the 1980s. The turning point came with the official visit of the then Portuguese President António Ramalho Eanes to Mozambique in 1981, followed by reciprocal visits by leaders of both countries, marking the beginning of a new era of cooperation.

    Cooperation Agreements between Portugal and Mozambique

    Promotion of Small and Medium-sized Enterprises

    In the economic sphere, the promotion of small and medium-sized enterprises (SMEs) has been a priority in cooperation policies between Portugal and Mozambique. SMEs play a key role in job creation, both in the industrial and service sectors, and contribute significantly to the economic growth of both countries. Through support and incentive programmes, governments have promoted the development of these companies, especially in sectors such as agro-industry, construction and renewable energy, fostering the creation of jobs and the training of skilled workers.

    Trade Balance between Portugal and Mozambique

    Trade between Portugal and Mozambique has been regulated since 1981 by the Trade Agreement, which facilitated the exchange of goods and services. This agreement allowed Portugal to export mainly machinery, equipment and industrial products to Mozambique, while importing agricultural products such as cereals and tropical fruits. Although the trade balance has historically favored Portugal, the two countries have worked to diversify and balance these exchanges, promoting greater inclusion of new sectors in their trade relations.

    Investment Protection and Promotion

    Legal security for investments was strengthened by the Agreement on the Promotion and Reciprocal Protection of Investments, signed in 1996. This legal instrument offers guarantees to investors from both countries, protecting them against risks such as expropriation and ensuring the repatriation of profits. The agreement opened the door to Portuguese investment in Mozambique, especially in key sectors such as agriculture, energy and infrastructure. In return, Mozambican investors find a favourable regulatory environment in Portugal, which facilitates access to the European market and offers similar protection.

    Cooperation in the Industrial Sector

    Since the 1980s, the Economic Cooperation Agreement and the Industrial Sector Protocol have been instrumental in driving industrialisation in Mozambique. Portuguese companies have found opportunities in areas such as construction, energy and infrastructure, contributing to Mozambique’s sustainable development. In addition, these partnerships have provided the transfer of technology and know-how, fostering the growth of Mozambican productive and industrial capacity.

    Double Taxation Convention

    Another relevant point in the cooperation between the two countries is the Convention for the Avoidance of Double Taxation, signed in 1991 and revised in 2008. This agreement aims to eliminate double taxation on income and prevent tax evasion, making investments more accessible and attractive. This convention has facilitated the mobility of professionals and workers, providing a more favourable environment for Portuguese citizens residing in Mozambique and Mozambicans working in Portugal.

    Investment Support Institutions

    Organisations such as the Portugal-Mozambique Chamber of Commerce and other cooperation agencies play a crucial role in supporting entrepreneurs and investors from both countries. These organisations promote the exchange of information, help identify investment opportunities and facilitate dialogue between the public and private sectors. Portugal is one of the main investors in Mozambique, with emphasis on sectors such as real estate, tourism, banking, energy and transport.

    Cooperation in the Education and Technical Training Sectors

    Cooperation programmes in the field of education and technical training, established since 1985, have been essential in the development of human capabilities in Mozambique. The training of Mozambican staff in Portuguese educational institutions and joint scientific research projects have contributed significantly to the development of human capital in Mozambique, strengthening ties between the civil societies of the two countries.

    Bilateral agreements between Portugal and Mozambique have been fundamental in strengthening their economic and social relations, benefiting entrepreneurs and citizens of both countries. Through legal guarantees, technological cooperation and agreements that promote the mobility of workers and professionals, these treaties have created a more stable and secure business environment. The positive impact of these agreements is reflected in the modernization of the Mozambican economy and in the access of Mozambican investors to the European market. This mutual cooperation has been a lever for the sustainable development and economic growth of Portugal and Mozambique, strengthening the historical and cultural ties that unite the two peoples.

  • How to apply in a public tender in Mozambique?

    How to apply in a public tender in Mozambique?

    Whenever the public sector needs goods, works or services that exceed a certain contractual value, it is obliged to publicly announce this need and encourage companies to compete for the opportunity. This process is known as Public Tender. In the public procurement process in Mozambique, the term “Public Tender” refers to an advertisement that is published by a public institution inviting companies to compete for the provision or supply of goods, products, works or public services that are necessary, with the final decision to be made based on price and quality.

    According to the World Bank, governments around the world spend $9.5 trillion a year on purchasing goods and services. The construction of schools, the purchase of hospital supplies, the renovation of vehicle fleets for public transport, the construction of roads or the security of computer systems in public buildings are examples of the wide range of sectors covered by public procurement. According to the same data, developing countries spend US$ 820 billion a year in obtaining these goods and services from the private sector, making the public procurement market a great business opportunity for companies around the world.

    In Mozambique, with the introduction of the new 2010 Procurement Regulation, all public works, goods and services acquired by the government at all levels (national, provincial, district and municipal, as well as companies in which the State holds 100% of the capital , when the financial activities of any of the aforementioned entities are linked to the State budget, must be carried out in accordance with the requirements set out in the Procurement Regulation, which provides for the Public Tender as the only means of bidding.

    The Procurement Regulations require that all procurement procedures comply with a number of principles, including legality, public interest, transparency, openness, equality, competitiveness, impartiality and sound financial management. In addition, procurement processes should be decentralized wherever possible, as indicated by the UFSA (Functional Procurement Supervision Unit), and should strive to optimize the benefits of procurement.

    The Public Tender proceeds according to a logical sequence of phases, which provides for the preparation; the release; the submission and opening of bids and qualification documents; the evaluation of proposals and qualification documents; sanitation; the classification; the Jury’s Recommendation; the decision; followed by a complaint and appeal (in case of any anomaly); and finally the award.

    The Bidding Documents may require, as a condition of acceptability of the proposal, the provision of guarantees, which may be definitive or provisional, and their value meets the maximum limits stipulated in the Regulation. Bank guarantees are normally accepted; cash security; certified check; public debt securities; and guarantee-insurance. The price proposal must be presented in national currency, the Metical, except in the exceptional cases provided for in the Tender Documents.

    Read also: How to register a company in Mozambique, step by step

    Entities or persons that can apply for public tenders in Mozambique:

    Eligible to compete for the contracting of works, supply of goods or provision of services to the Mozambican State are natural or legal persons, national or foreign, who demonstrate legal, economic, financial and technical qualification and who are in a situation of tax compliance.

    In terms of qualification requirements, there is a need for proposals to be accompanied by, among others, the following documents: commercial registration certificate and updated statutes; declaration signed by the competitors that they do not incur any impediment; consortium project or consortium formation agreement (in the case of groupings of companies); periodic declaration of income and annual declaration of accounting and tax information; certificate proving registration or enrollment in a professional activity compatible with the object of the contract in question, license or equivalent document issued by the competent entity.

    National/Foreign

    For the purposes of the Regulation, a “national” competitor is considered to be a natural person who has Mozambican nationality; or a legal collective person that has been incorporated under the terms of Mozambican law and whose share capital is held in excess of 50% by a Mozambican natural person or by a legal collective person whose share capital is majority owned by more than 50% by a Mozambican natural person.

    The Contracting Entity may restrict the Tender to the participation of national competitors, whenever it is a contract whose estimated value is less than 5,250,000,000.00 Meticais, in the case of public works contracts, and 2,625,000,000.00 Meticais , in the case of acquisition of goods and services.

    The foreign competitor, whether or not he is authorized to carry out his activity in Mozambique, must comply with the general rules set out in the Regulation and must, in addition: have a resident attorney domiciled in the country, with special powers to receive summons, subpoena and respond administratively and judicially for his acts, joining the relevant instrument of mandate with the documents determined in the Regulation; prove their legal, economic-financial, technical qualification and fiscal regularity in the country of origin; prove the inexistence of bankruptcy or bankruptcy petitions in Mozambique and in the country of origin and finally; proceed with the delivery of documents written in Portuguese.

    Competitors formed in a consortium or associations are always allowed to participate in the Contests, however, members of a consortium or association cannot participate alone or as part of another consortium or association in the same Contest.

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    Publication

    The tender process starts with a public notice, which is published by a public sector body to generate bids from competitors that meet the specific requirements defined in the tender notice. It is mandatory to publish the Notice of Tender either in the press or at the headquarters of the Contracting Entity, and in the case of an “International Tender” the disclosure must be made through the Republic Gazette and/or website (www.concursos.co.mz ).

    Bid Evaluation and Decision Criteria

    Regarding the evaluation criteria, the foreseen rule is the lowest price. Consequently, in general, the lowest price offer is the one chosen for the award. In case of a tie, the final classification of the proposals is determined by drawing lots. The Regulation also provides that, exceptionally, the award criterion may take into account the technical evaluation of the proposal and the respective price. In situations of tie in the evaluation of the proposals, the best technical proposal prevails.

    Tender Decision Criteria for Concession

    The decision of the Tender for the concession of works or provision of public services may be adopted, observing, individually or jointly, the following criteria: higher price offer for the concession; lowest tariff or price to be charged to users; better quality of services or goods made available to the public; and better service and demand satisfaction.

    Contracts – Applicable Rules

    The contracts provided for in the Regulation will be set out in writing and must comply with the models contained in the Tender Documents, which must, obligatorily, be submitted to prior inspection by the Administrative Court, within a period of 5 days after their execution. Due to the administrative nature of the Contracts in question, the Regulation provides for certain clauses, designated as essential, such as the Identification of the parties; Object of the contract; Start and end dates; Warranties; Payment terms and conditions; Estimate of the total charge; Applicable sanctions; Judicial or other forum, for the resolution of disputes; Anti-corruption clause; and Other conditions that the parties consider essential for the proper performance of the contract.

    The Contracting Entity must demand, when provided for in the Bidding Documents, that the Contractor provide a definitive guarantee, adequate to the good and timely fulfillment of its obligations; and its presentation is a prerequisite for the conclusion of the contract, therefore, payment of an advance without presentation of a guarantee of the same amount is not allowed – with the exception of rare exceptions provided for in the Regulation and subject to certain admissibility conditions.

    In general terms, this is the main information about Public Procurement in Mozambique, a country with several potentials and enormous challenges and needs for the execution of mega-projects of public nature, especially in the area of ​​energy, construction of infrastructure , exploration of natural resources and railways.

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  • Oil and Gas in Mozambique: Opportunities for busines

    Oil and Gas in Mozambique: Opportunities for busines

    The discovery of oil and gas in northern Mozambique is considered by many to be a fundamental turning point in the Mozambican economy. Although the business environment in this sector is somewhat marked by uncertainty due to security reasons and recently by the coronavirus pandemic, Mozambique is expected to become one of the largest exporters of liquefied natural gas (LNG). ) in the next decade.

    Research and prospecting for hydrocarbons in Mozambique dates back to the late 1950s, with the first gas deposit being discovered in 1961 and the first commercial production starting in 2004 by Sasol, in Inhambane province, with proven reserves of 2.6 trillion cubic meters (TCF) and an estimated investment of 1.4 billion dollars.

    But if it is true that the history of the extractive industry in the Oil and Gas sector in Mozambique already has this legacy as a whole, the numbers of recent discoveries are, by far, superior to all the investment previously made in the country. As an example, area 1, in the Rovuma basin, led by Total SA hopes to build up to six LNG plants, and the first two plants reached already the final investment decision (FID) in 2019 worth 23 billion dollars .

    The creation of infrastructure for the extraction, processing, liquefaction and storage of natural gas has already led to large investments in advance. The coronavirus crisis in mid-2020 led to delays in the development of the Mamba gas field in the Area 4 concession area, which was developed by a consortium led by the US company ExxonMobil. There is also the smaller Campo Coral, also in Area 4, which is being developed under a consortium with the leadership of Italian Eni.

    Also last year, Total announced business opportunities for the Golfinho/Tuna Project for the next 6 months. The project envisages contracting with local companies US$2.5 billion, with around 28% of this amount having been fulfilled out so far. Among the opportunities presented, stands out the installation for LNG (onshore), the construction and installation of sub-aquatic systems (offshore) and the construction of the Afungi aerodrome, and more business opportunities in the areas of information technology services, transport , health, catering and security.

    Read also: How to apply in a public tender in Mozambique?

    Oil and gas in Mozambique, also for domestic consumption…

    The Mozambican government determined that part of the natural gas production must be used locally to meet the needs of the internal market, the National Petroleum Institute (INP) organizes tenders to identify companies interested in developing industrial projects. In 2016, Norwegian company Yara International received an allocation to produce 1.2-1.3 million tonnes per year of fertilizers. In addition to that company, Royal Dutch Shell won the concession for a liquefied gas plant (GTL), producing 38 million barrels per day (MB/d) of liquid fuels such as diesel, naphtha and kerosene. Finally, a Kenyan group, GLA, obtained a concession to build a 250 MW power plant.

    However, despite the initial optimism, it is important to emphasize that many of these investments are either stopped or in stand-by, due to the coronavirus and fundamentally for security reasons. French oil company Total SA has announced a minimum delay of 12 months, which will push the start of the $20 billion project to at least 2025. Security reasons, including insurgent attacks in Palma, Cabo Delgado, hampered Total’s plans and Exxon Mobil, which also has an LNG project in Mozambique, to turn the country into a major LNG producer to rival Australia, Qatar, Russia and the United States of America. Total SA’s decision to invoke force majeure is seen as a blow to the Mozambican economy, especially for SMEs, since the company would not fulfill its contractual obligations during the period in which this state is in force, and will not allow Mozambique to position itself as an important player in the world energy market. At the same time, this disruption comes at a time when major energy companies are re-evaluating their approach to LNG, once seen as the fuel of the future because it has lower emissions than coal or oil, but which is now under scrutiny in the attempt to cut carbon emissions even further.

    Experts in the Oil and Gas sector, however, predict that with this forced interruption and, equally, the crisis generated by Covid-19, local companies have a point in their favor: with the disruption caused by the restriction in the movement of people and goods , the oil and gas industry will become increasingly collaborative and joint ventures with local companies may become a trend to face the limitations of movements and with the way to guarantee the continuity of operations. In this sense, the business fabric can take advantage of this forced break time and accelerate its productivity and competitiveness capabilities to respond to the standards that the industry demands.

    The latest events marked by an unprecedented energy crisis in the most industrialized countries, especially in Europe, China and the United States, and the lack of a viable practical alternative to gas may, however, create conditions to accelerate the recovery process in some projects , provided that they are guaranteed necessary security conditions. Analysts linked to the sector indicate that if, at this time, efforts are made to provide training and intensive preparation of the local business community, when there is a recovery and new tenders are launched, it will be possible to see Mozambican companies in joint ventures in the main investment projects planned in the sector. .

    Furthermore, government policy is to maximize the use of gas produced in the country to create economic and industrial development in Mozambique, giving a starting point in a local gas consumption industry. So far, Mozambique has granted gas distribution licenses in Vilankulo and Inhassoro, near the Temane gas fields, and in the Matola and Machava regions, which are the country’s main industrial area. Therefore, there is still room for other business opportunities in the areas of oil and gas for industrial, commercial and domestic use in Mozambique.

    Read also: How to register a company in Mozambique, step by step