The Mozambican Government has assigned the Instituto de Cereais de Moçambique (ICM) exclusive responsibility for managing imports of rice and wheat, a policy shift aimed at curbing under-invoicing, tax evasion and illicit capital flows that are costing the state an estimated US$100 million annually.
The decision, approved on December 31 and formalised through Ministerial Decree No. 132/2025 by the Ministry of Economy, addresses long-standing inefficiencies and irregularities in the cereal import sector. According to the government, the new framework is designed to improve transparency, stabilise prices and protect both public finances and domestic production.
Luís Jobe Fazenda, director of the ICM, said the move reflects the institute’s role in managing the cereal value chain and overseeing initial market distribution.
“The government grants this exclusivity primarily because the ICM is the entity managing the value chain and the initial marketing of cereals… The government noticed that in recent years there had been under-invoicing and tax evasion,” said Fazenda.
He noted that the state has been losing around US$100 million per year due to these practices. The decree also seeks to eliminate the illegal export of foreign currency through over-invoicing, an issue that has intensified amid Mozambique’s ongoing foreign currency shortages.
“We know Mozambique is currently struggling with foreign currency issues to pay for imported goods and services. In this process, some companies took advantage to illegally expatriate capital and foreign currency out of the country,” Fazenda said.
Beyond foreign exchange concerns, the centralisation responds to market disorganisation and the lack of reliable data on importers and volumes. Under the new system, imports will be structured similarly to the fuel sector model. Operators must register with the ICM, declare the quantities they wish to import and provide bank guarantees.
The ICM will then coordinate sourcing, mainly from partner countries, secure the purchases and ensure that products are distributed locally at fair market prices.
“In the meeting with the importers, they understood what will happen. The ICM will now have information on various markets where these products are acquired, allowing for lower prices. Once the state secures guarantees from importers, it will place the order and purchase the merchandise, which must then be sold in the national market at a fair price,” he said.
Fazenda emphasised that the system will remain open and competitive.
“The mechanism will be transparent because there will be free competition. Any operator can register with the ICM and submit … the quantity they wish to import.”
To prevent abuse, the National Inspection of Economic Activities will monitor the market and penalise unjustified price increases. At the same time, the government is restricting imports to protect domestic rice production and encourage local consumption.
The ICM is also advancing initiatives to strengthen local production capacity. A project presentation to the World Food Programme and the Food and Agriculture Organization is scheduled for January 27–28 in Italy, aimed at mobilising significant financial support.
“We are in the process of mobilising resources. Over US$100 million to finance production, open financing lines for production, but also (to) finance agricultural marketing and the rehabilitation and construction of warehouses,” said Fazenda.
Part of the funding will be used to establish a strategic grain reserve exceeding 100 000 tonnes, intended to support the population during natural disasters or extreme events and enhance national food security.