Mozambique to establish state-owned fuel procurement company to strengthen energy security

MAPUTO: Mozambique's government has approved the creation of a state-owned company to centralize the procurement and management of petroleum products, aiming to strengthen the country's energy security following months of fuel supply disruptions.

The National Petroleum Products Procurement Company (ENAPP) will be responsible for coordinating fuel procurement and supply for the domestic market, replacing a procurement model that has been in place for about three decades.

Government spokesperson Inocencio Impissa said after Tuesday's meeting of the Council of Ministers that recent shortages had exposed vulnerabilities in the country's fuel supply chain.

"With the creation of this company, the country gains a new model, abandoning the current model in use for 30 years, which was already in need of refinement," Impissa said.

ENAPP will have administrative, financial and legal autonomy and oversee the planning, contracting, coordination and monitoring of fuel supply operations, which were previously coordinated largely through Imopetro, the country's exclusive fuel import agent, under an arrangement involving private operators, according to the spokesperson.

He added that the new system would give the state greater oversight of fuel imports and distribution, while improving supply efficiency and emergency response capacity.

Mozambique has experienced intermittent fuel shortages in recent months, which authorities attributed to geopolitical tensions in the Middle East and foreign currency shortages.

Recently, the government announced a 50-million-U.S.-dollar fund to support fuel imports and distribution.