Selling to the Government
The Public Procurement Regulations govern the public tender process in Mozambique and apply to all municipalities and majority state-owned enterprises. Public tenders are mandatory for government procurements exceeding $10 million. These regulations cover the procurement of products, services, and concessions in general, with specific rules for certain sectors such as mineral resources, public-private partnerships, and large-scale projects. The Unit for the Supervision of Acquisitions (UFSA), under the Ministry of Economy’s National Directorate of State Assets (DNPE), is responsible for overseeing and enforcing these regulations.
Additionally, purchases may be subject to conditions set by international donors or investment agencies funding particular projects. To be eligible for public tenders, both local and foreign companies must demonstrate legal, financial, and technical qualifications, as well as a compliant tax record, to the government.
U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information.
Financing of Projects
Major infrastructure projects in Mozambique are often financed through foreign development grants and concessionary financing. The financial sector is largely dominated by banks, with high interest rates and short repayment terms, limiting the ability to raise capital for large-scale capital expenditure projects locally. Additionally, the underdeveloped Mozambique Stock Exchange (Bolsa de Valores de Moçambique, BVM) further restricts domestic capital-raising efforts.
To address these challenges, many of the country’s infrastructure initiatives are structured as public-private partnerships (PPPs), typically involving 15–30-year concession agreements. The government has made efforts to create financially viable, bankable projects to attract international investors. Notable examples include the recently completed Temane Thermal Power Station and the Mphanda Nkuwa Hydroelectric Dam, both designed to attract foreign investment and serve Mozambique’s long-term, domestic energy needs.
Multilateral Development Banks & Financing Government Sales
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). The Guide to Doing Business with Multilateral Development Banks overviews how to work with MDBs. The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
Learn more by contacting:
Commercial Liaison Office to the African Development Bank.
U.S. Government Support
The Export-Import Bank of the United States (EXIM Bank) offers loan guarantees, insurance, and project financing to promote the export of U.S. goods, with a particular interest in the Mozambican market. For more details on the services available for Mozambique, consult the Bank’s Country Limitation Schedule.
The U.S. International Development Finance Corporation (DFC), America’s development bank, partners with the private sector to finance solutions for critical global challenges. DFC offers project financing through loans or loan guarantees, as well as political risk insurance for projects in Mozambique. Small business owners exploring the market can contact the Small Business Administration’s Office of International Trade.
The U.S. Trade and Development Agency (USTDA) offers feasibility study and training grants for certain infrastructure projects, helping to advance U.S. business interests in Mozambique
Additionally, the U.S. Department of Agriculture (USDA) Export Credit Guarantee Program (GSM) helps finance exports of U.S. agricultural products. Currently, there are no Mozambican banks approved under the GSM-102 program. However, eligible banks in other countries in the region are able to facilitate exports to Mozambique.
The USDA’s Commodity Credit Corporation also offers are range of export and foreign assistance programs to promote U.S. agricultural exports. Interested exporters are encouraged to contact the U.S. Foreign Agricultural Service for more information.