Mozambique industrialization and resource policy shifts

The government of Mozambique has initiated a series of policy changes designed to transition the nation from a primary commodity exporter to an industrial processor. Initially, the government announced plans to prohibit the export of raw mineral commodities—including graphite, iron, bauxite, and energy resources from the Rovuma basin—alongside updated regulations for the cashew value chain to boost competitiveness.

Following these announcements, the government introduced more specific mandates for the mining and procurement sectors. New mining policies propose a 15% state participation in projects and require that at least 20% of extracted minerals be allocated for domestic consumption and processing. In the extractive sector, ExxonMobil has earmarked approximately $4 billion for local content within its Rovuma LNG project in Cabo Delgado, offering supply chain opportunities for domestic firms.

To further support the national economy, a new public procurement regime was implemented. This includes requirements for large public works projects to subcontract at least 20% of contracts to national micro, small, and medium-sized enterprises. The regime also establishes preference margins for national companies and defines national products as those incorporating at least 35% local production factors.

Parallel to industrial efforts, the Confederation of Economic Associations (CTA) is seeking a partnership with the World Food Programme (WFP) to transition from humanitarian aid toward long-term food resilience by boosting local production and nutritional fortification. However, implementation challenges have emerged, with reports indicating the government has yet to transfer expected funds from the extractive industry to local communities and provinces as planned for the first half of 2026.