Fuel supply and transport costs
The government says it cannot keep subsidising transport operators indefinitely to absorb higher fuel prices. Spokesperson Inocêncio Impissa, speaking after the 29th ordinary session of the Council of Ministers, called the support a temporary measure that ran from June to August 2026, when the executive still expected energy markets to improve. Tensions linked to the Middle East conflict and disruption to oil shipments through the Strait of Hormuz lasted longer than expected. The Federation of Mozambican Road Transporters (FEMATRO) has announced a five-meticais rise in public passenger fares across the Maputo metropolitan area. Impissa put the risk of the subsidy's continuation in these words.
It will eventually be unsustainable to keep subsidising for the whole time, and it is not known for how long.
Separately, Ministerial Diploma No. 80/2026, published by the Ministry of Finance, relaxes fuel import customs rules until 31 December 2026. Mozambique has no refining capacity, so petrol and diesel are imported. Operators must file warehouse entry declarations within 30 calendar days of discharge, extendable by 15 days, and customs clearance may take up to 65 calendar days, also extendable by 15. The change follows fuel queues at some Maputo and provincial stations in late September, which the Ministry of Mineral Resources and Energy blamed on logistical difficulties.
2027 budget and growth outlook
On Tuesday, 13 October, the Council of Ministers approved the proposed 2027 Economic and Social Plan and State Budget. Revenue is projected at 427 billion meticais (5.9 billion euros), or 23.5% of GDP, while spending and financial operations should reach about 511 billion meticais (7.1 billion euros), or 28.1% of GDP. That leaves an estimated deficit of about 83 billion meticais (1.2 billion euros), or 4.6% of GDP, within a framework that assumes average inflation of 7% in 2027.
Planning and Development Minister Salim Valá, speaking at the 23rd session of the Development Observatory in Maputo, urged growth from sectors that already employ most Mozambicans, including agriculture, small and medium enterprises and tourism.
Mozambique cannot wait for natural gas
GDP growth is forecast at 1.6% in 2027, accelerating to 9.5% in 2029 as large liquefied natural gas projects start up.
Security and investment climate
The Confederation of Economic Associations of Mozambique (CTA) described one year without completed kidnappings, after more than a decade of cases, as an encouraging sign for security and investor confidence. The body said kidnappings had damaged the business community by undermining investment decisions and creating insecurity for workers and their families. The last known case was in central Maputo on 7 October 2025, when armed, hooded men abducted a Portuguese businessman, who was freed on 10 March 2026. The CTA urged continued criminal investigation and prosecution of those responsible.
For that reason, the progress now noted deserves to be recognised and encouraged.
In Lisbon on Monday, 12 October, former president Joaquim Chissano called for Mozambican and Portuguese companies to form partnerships so that resources are processed inside Mozambique.
Machipanda border tender and licensing reform
The Ministry of Transport and Logistics said the international tender for modernising the Machipanda border post in Manica province has not been cancelled, but it is now subject to an injunction from the Maputo City Administrative Court. The challenge came from SAFAGA, one of the bidders, which questions the evaluation criteria, the award and the composition of the jury. The court suspended the award and provisionally blocked signing, while the ministry said the ruling is not a final decision on legality. Separately, a new industrial licensing regime takes effect on 8 November, allowing applications to be approved automatically if the state does not respond within legal deadlines, with digital licences carrying QR codes.