Selling to the Government
The Public Procurement Regulations governing the public tender process apply to all municipalities and majority state-owned companies. Public tenders are required for all government procurements over $10 million. The regulations cover products, services, and concessions in general, and are subject to some industry-specific regulations, such as mineral resources, public private partnerships, and large-scale projects. The Unit for the Supervision of Acquisitions (UFSA) within the Ministry of Economy and Finance’s National Directorate of State Assets (DNPE) is responsible for applying and overseeing the Public Procurement Regulations.
Purchases may also be subject to the terms defined by international donors or investment agencies financing specific projects. In order to be eligible, the general bid standards stipulate that all individual or legal persons from Mozambique or abroad must demonstrate to the government that the company is legally, financially, and technically qualified, and has a taxation record.
U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information.
USAID
The U.S. Agency for International Development (USAID) has a particularly large presence in Africa, and Mozambique is no exception. The agency’s Business Forecast – including Mozambique – provides information about potential funding and partnership opportunities at USAID and offers partners the opportunity to engage early in the procurement process. The Business Forecast is issued while activities are still in the planning phase, so the information in it may change over time. To receive alerts on Business Forecast updates, conference calls, and resources, sign up for the USAID Acquisition and Assistance email list. Once activities on the Business Forecast make its way through the procurement process, it ends up on either Sam.gov (contract opportunities) or Grants.gov (grants and cooperative agreement opportunities).
Further information can be found on Work with USAID.
Millennium Challenge Corporation
On September 21, 2023, the Millennium Challenge Corporation (MCC) and the Government of the Republic of Mozambique signed the $537.5 million Connectivity and Coastal Resilience Compact to provide investment and grants to increase productivity, promote income generation, and reduce poverty in Zambezia Province in central-northern Mozambique. Investment will be channeled towards rural transportation and commercial-scale agriculture, as well as integrated climate management and coastal development. Tenders for Mozambique and other MCC compact markets are published via Millennium Challenge Account Program Procurements.
As a U.S. foreign assistance agency, MCC aims to combat poverty by forming partnerships with developing countries who are committed to good governance, economic freedom and investing in their citizens. Using a country-led approach, MCC provides time-limited grants and assistance towards policy and institutional reforms to developing countries that meet global standards for good governance.
The MCC Compact will fuel demand for U.S. companies that can offer construction machinery, engineering services, small-scale agriculture equipment, inputs, and climate resiliency solutions. Open tender opportunities for the Compact can be found on dgMarket.
Financing of Projects
Major projects are typically financed through foreign development grants and concessionary financing. The dominance of banking in the financial sector, prevailing high interest rates, and short repayment terms combined with the underdevelopment of the Mozambique Stock Exchange (Bolsa de Valores de Mocambique, or BVM) limit the local capacity for raising capital for capital expenditure projects. As a result, many of the country’s proposed infrastructure projects are based on public-private partnership frameworks with 15–30-year concessions. The government has tried to create bankable, financially viable project financing to attract international investors to back certain marquee projects, like the recently completed Temane Thermal Power Station and the upcoming Mphanda Nkuwa Hydroelectric Dam.
Multilateral Development Banks and Financing Government Sales
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). The Guide to Doing Business with Multilateral Development Banks overviews how to work with MDBs. The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
Learn more by contacting the Commercial Liaison Office to the African Development Bank.
U.S. Government Support
The Export-Import Bank of the United States offers loan guarantees, insurance, and project financing to encourage the export of U.S. goods and is keenly interested in the Mozambican market. Consult the Country Limitation Schedule for more information on the banks’ available services for the Mozambican market.
The U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. It can assist with project finance, through loans or loan guaranties, and political risk insurance in Mozambique.
Small business owners exploring the market can contact the Small Business Administration’s Office of International Trade.
The U.S. Trade and Development Agency can provide feasibility study and training grants for certain infrastructure projects.
Availability of United States Department of Agriculture (USDA) Export Credit Guarantee Program (GSM) – The USDA provides GSM credit guarantees to assist in financing exports of U.S. agricultural products overseas. While no Mozambican banks are currently eligible for the program, eligible banks elsewhere in the region may be able to cover exports to Mozambique. The USDA Commodity Credit Corporation has a range of export and foreign assistance programs to promote the export of American agricultural commodities. Interested exporters are advised to contact the U.S. Foreign Agriculture Service.