Mozambique Ends 30-Year Private-Led Fuel Import Model With New State Firm
Mozambique created ENAPP to take state control of fuel procurement and domestic supply operations The reform replaces a nearly 30-year system in which private operators coordinated fuel imports through Imopetro The government is also introducing a $50 million payment facility as foreign-currency shortages put pressure on fuel imports The Mozambican. . .
Mozambique created ENAPP to take state control of fuel procurement and domestic supply operationsThe reform replaces a nearly 30-year system in which private operators coordinated fuel imports through ImopetroThe government is also introducing a $50 million payment facility as foreign-currency shortages put pressure on fuel importsThe Mozambican government announced on Wednesday, July 15, the creation of the National Petroleum Products Supply Company, or ENAPP. The state-owned company will oversee petroleum product procurement and supply for the domestic market. ENAPP will operate as an independent legal entity with autonomy over its administration, finances and assets. Its main responsibilities will include assessing fuel requirements, managing procurement and coordinating and monitoring supply operations. The reform ends a system that had been in place for nearly 30 years, under which private operators coordinated fuel imports through Imopetro. The government said the arrangement had proved inadequate in addressing recent disruptions in the domestic market. “The creation of this company marks a major departure from the country’s current fuel supply model,” said Inocêncio Impissa, the government spokesman and minister of state administration. The initiative comes days after the Council of Ministers approved a $50 million payment facility on July 9, 2026, to secure liquid fuel imports. Managed by state-owned oil company Petromoc, the facility is intended to ease payments to foreign suppliers and prevent disruptions to fuel supplies nationwide. ENAPP is being established as Mozambique faces mounting pressure on its fuel market. According to a report by the Foundation for the Competitiveness of Mozambican Companies, or FUNDEC, the market strains observed between 2019 and May 2026 were caused mainly by a shortage of foreign currency, particularly the dollars required to pay for imports, rather than by a physical lack of fuel. The report identified several structural vulnerabilities, including Mozambique’s complete dependence on refined fuel imports, limited sources of foreign currency, constraints within the banking system and shortcomings in the supply system coordinated by Imopetro. The report also said inflation reached 10. 23% during the 2022-2023 period, prompting the Bank of Mozambique to raise its MIMO policy rate to 17. 50%. Higher borrowing costs subsequently weighed on investment, consumer spending and economic growth. Carelle Yourann