LUSA 08/29/2026

Lusa - Business News - Mozambique: Delay in public works payments hurting constructors - businesses

Maputo, Aug. 28, 2026 (Lusa) - Mozambican business leaders on Friday called for new certification and payment mechanisms for public works projects, in light of government delays that are hampering business operations, with debts currently estimated at €1.17 billion.

«We recommend the establishment of more effective and predictable mechanisms for planning, certification and payment of public works, as well as greater transparency in the management of the government's obligations,» said Álvaro Massingue, president of the Confederation of Economic Associations of Mozambique (CTA), during the fifth round of meetings with the government in Maputo.

At the event, which brought together the Minister for Public Works, Housing and Water Resources, Fernando Rafael, and representatives from the private sector to discuss the challenges facing the construction industry, present solutions and identify investment and business opportunities, Massingue warned that when payments are «excessively delayed», contractors are forced to bear additional financial costs, jeopardising the fulfilment of contracts and the very survival of the companies.

According to Massingue, the state's debt currently stands at 86 billion meticais (€1.17 billion) and he added that discussions are ongoing with the government to define a strategy for prioritising payments.

«We are continuing to work on this. There are already proposals on how to resolve this issue, but it has not yet been resolved and, as a result, continues to create serious constraints for companies. We call on the Government to speed up this process,» said Massingue.

In light of the situation, business leaders also called for a review of the customs and administrative procedures applied to strategic equipment and materials, as well as the introduction of facilities for the temporary import of specialised equipment used in major projects.

The private sector also proposed the creation of a public portfolio of priority projects for public-private partnerships, coupled with more predictable rules for concessions and new financing instruments for infrastructure.

«We need a public portfolio of priority projects for public-private partnerships, more predictable rules for concessions, balanced risk-sharing mechanisms and conditions that ensure the active participation of domestic companies,» said Álvaro Massingue.

For his part, the Minister for Public Works, Housing and Water Resources invited business leaders to collaborate with the government in drawing up programmes to expand water supply in rural areas and to take advantage of the investment opportunities associated with the large-scale roll-out of housing projects aimed at young people.

«We would also like the business community to pay closer attention to the area of water resources, as climate change is turning water into a social, economic and security challenge. For this reason, we need increasingly resilient infrastructure,» said Fernando Rafael.

The minister also challenged the national business community to identify projects, funding models and innovative solutions that can be developed in partnership with the Government, as well as to prepare for the new investment portfolio in water, sanitation, housing, schools, public buildings, dams, resilient infrastructure and urban planning, given that these areas will require new business capabilities.

«Together, we will develop a stronger, higher-quality national construction industry, so that our infrastructure is resilient to climate change,» added Rafael, reiterating the commitment to reducing bureaucracy and increasing predictability in the implementation of projects.

 

 

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