Maputo, Aug. 20, 2026 (Lusa) - Major public works projects in Mozambique will now set aside at least 20% of the work for domestic small and medium-sized enterprises (SMEs), as part of a reform that centralises government procurement and establishes mechanisms to ensure transparency in contracting.
The changes are set out in a decree by the Cabinet, to which Lusa gained access on Thursday and which came into force this month. The decree introduces mandatory centralised procurement, establishes the concept of framework agreements and strengthens mechanisms to promote domestic production and Mozambican companies.
One of these changes stipulates that, when awarding public works contracts worth 100 million meticais (€1.37 million) or more, the successful bidder is obliged to subcontract at least 20% of the work to national micro, small and medium-sized enterprises.
The legislation also sets out mandatory preference margins for domestic bidders, amounting to 15% of the contract value for public works contracts and the provision of services, and 20% for goods produced in the country. To be considered as domestically produced, processed products must incorporate at least 35% of domestic inputs.
Another structural change stipulates that «centralised procurement is mandatory for all public administration bodies and institutions», whilst the adoption of procedures leading to direct contracting is also prohibited, subject to exceptions to be defined by the minister of finance.
The new regime stipulates that state bodies must comply with the Framework Agreements concluded by the State Procurement Centre (CAE), a public body established in June to centralise public procurement.
The Framework Agreements, now formally incorporated into Mozambican legislation, will enable the pre-selection of suppliers for goods, services and, where applicable, standardisable public works. The legislation states that «Framework Agreements» and the «Dynamic Procurement System» are introduced into the Mozambican legal system as instruments for the public procurement of goods, services and works compatible with this model.
These instruments will have an initial duration of 12 months, renewable once for the same period, and, where they involve several suppliers, must include at least three qualified tenderers, unless this is impossible for duly substantiated reasons.
The legislation introduces dynamic procurement systems, a process that is «conducted exclusively by electronic means», and must ensure the electronic submission and registration of the relevant procedural documents.
Among the transparency measures, it is now mandatory for companies winning tenders worth more than 60 million meticais (€822,000) to submit a beneficial owner declaration, enabling the identification of the ultimate owners of companies contracted by the State.
The decree also provides for the strengthening of sustainable public procurement, stipulating that the CAE must promote the preferential contracting of micro, small and medium-sized enterprises, women and young people, as well as domestic production and local content.
These changes form part of the wider reform of the public procurement system initiated with the creation of the CAE. When presenting the reform, the Mozambican president, Daniel Chapo, linked the creation of the new structure to the fight against corruption, arguing that it was necessary to put an end to the «sense of impunity» in public administration and to strengthen transparency in the management of state resources.
PVJ/AYLS // AYLS
Lusa
