HomeLatest Updates

Mozambique introduces US$50 million fuel payment facility to stabilise supply chain

Mozambique introduces US$50 million fuel payment facility to stabilise supply chain

Mozambique advances infrastructure plans to meet rising global mineral needs
Mozambique pushes for modern ports and regional trade integration
Mozambique invests $10 million in logistics centres for SMEs and mining supply chains

Mozambique’s US$50 million fuel payment facility aims to stabilise imports, strengthen supply chains and support transport operators facing ongoing fuel shortages

The Mozambican government has approved a US$50 million payment facility aimed at restoring confidence in the country’s fuel import system and easing supply disruptions that have affected transport, businesses and consumers in recent months.

The intervention comes as Mozambique’s liquid fuel import sector continues to face mounting pressure. According to central bank data, fuel imports declined by 5% in 2025 to US$1.14 billion, down from US$1.20 billion in 2024 and significantly below the US$1.42 billion recorded in 2023. The decline represents the lowest import level since the Covid-19 pandemic.

Speaking after a meeting of the Council of Ministers, government spokesperson and Minister of State Administration Inocêncio Impissa said Cabinet had approved a resolution establishing a payment facility mechanism for foreign fuel suppliers. The initiative will be administered by the state-owned fuel company, Petromoc.

The facility is intended to address one of the key constraints facing fuel distributors. International fuel suppliers typically require payment guarantees, usually in US dollars, before releasing fuel cargoes at ports. However, some Mozambican distributors have struggled to secure the necessary bank guarantees from commercial lenders, disrupting imports and fuel availability.

“The US$50 million fund will guarantee the supply of liquid fuels and ensure continuity across the country, while minimising impacts on consumers and economic activity,” Impissa said.

Under the arrangement, Petromoc will have access to a dedicated account held by the Ministry of Finance at the Bank of Mozambique, enabling payments to foreign creditors on behalf of qualifying importers.

The government’s intervention follows months of fuel supply challenges that have resulted in shortages at filling stations, temporary closures, fuel purchase restrictions and reduced transport services in parts of the country. These disruptions have affected freight operators, passenger transport and businesses dependent on reliable fuel supplies.

Mozambique’s fuel supply chain has also been exposed to global geopolitical risks. Approximately 80% of the country’s fuel imports transit shipping routes linked to the Strait of Hormuz, making Mozambique particularly vulnerable to disruptions caused by instability in the Middle East. Recent tensions in the region placed additional pressure on fuel availability and import costs.

By introducing the payment facility, the government hopes to strengthen fuel supply resilience, restore confidence among international suppliers and improve the reliability of fuel distribution across the country.