Mozambique Centralizes Rice and Wheat Imports to Combat Customs Violations
The government of Mozambique has granted the Mozambique Grain Institute (ICM) the authority to centrally manage the import of rice and wheat. This decision aims to combat the undervaluation of customs duties, which leads to significant tax losses for the country. According to estimates, the state budget loses about €85.2 million annually due to such abuses.
This is reported by AgroReview
Reasons for Centralizing Grain Imports
As explained by ICM Director Luís Jobe Fazenda, the institute is responsible for organizing the grain supply chain and marketing of grain crops. In recent years, Mozambique has regularly identified systemic undervaluation of invoices and tax evasion, which is estimated to have cost the state up to $100 million each year. The official mandate of the ICM came into effect on December 31. The government emphasized that centralization is necessary to stop illegal capital flight through price manipulation of imported rice and wheat batches. Other issues include the lack of a unified importer registry and accurate data on the volumes of imported products.
According to government estimates, such violations cost the state about €85.2 million annually, reported ICM Director Luís Jobe Fazenda.
New Approach to Imports and Support for the Agricultural Sector
Under the new model, the government limits grain imports and assigns ICM the functions of a centralized manager, similar to the regulation of the fuel sector. The institute will gather current information on global markets, ensure banking support for transactions, conduct purchases, and sell grain on the domestic market at fair prices. This approach will enable state inspectors to more effectively monitor pricing and prevent speculative actions in the market.
In addition to import activities, ICM intends to develop national production and infrastructure in the grain sector. By the end of January, the institute plans to hold negotiations with representatives of the World Food Programme (WFP) and FAO in Italy. During the meetings, ICM will present a project aimed at attracting over $100 million in investments for production development, agromarketing, warehouse modernization, and creating a strategic grain reserve of over 100,000 tons for effective emergency response.