LUSA 09/25/2026

Lusa - Business News - Mozambique: State looking for private partner for automobile plant

Maputo, Sept. 24, 2026 (Lusa) - Mozambique's government intends to select a private investor to set up and operate a motor vehicle assembly plant under a public-private partnership, initially producing buses and later expanding to other vehicle types.

The call for expressions of interest, issued by the Ministry of Transport and Logistics (MTL), launched on Thursday and seen by Lusa, states that the project aims to establish an industrial motor vehicle assembly plant in Mozambique, seen as a measure to strengthen the country's capacity to provide public transport, support fleet renewal and promote self-sufficiency in vehicle supply.

According to the document, the initiative also aims to create skilled jobs, develop industrial expertise and promote cleaner mobility solutions, including vehicles powered by compressed natural gas (CNG), while also considering hybrid, electric or lower-carbon emission technologies that prove to be technically and economically viable for the country.

The ministry is seeking to select «a private investor, consortium or strategic partner» to design, finance, install, equip, operate and develop the plant under a public-private partnership (PPP) model, allowing for future expansion into assembling other types of vehicles and equipment.

According to the announcement, the future industrial facility is expected to gradually build local capabilities for assembly, maintenance, adaptation, technical training, integration of domestic components, and after-sales support services for public and private operators in the transport sector.

Bidders must submit expressions of interest by 19 October, and the ministry will make the terms of reference available to them from 28 September.

The government of Mozambique launched the tender three months after announcing its intention to establish a bus assembly plant in the country and subsequently initiating a consultancy process to prepare, from a technical, legal and financial perspective, for selecting the investor responsible for the project.

At the time, the government justified the initiative by the need to reduce the high costs of purchasing buses, increase flexibility in fleet renewal, and develop solutions tailored to the national context.

The cabinet spokesperson, Ussene Isse, said in June that establishing the industrial plant could cut costs by around 40% and promote industrialisation, technology transfer, job creation and import substitution.

Plans to establish an automotive industry in Mozambique have been under discussion for several years. In March, the government revealed that the Chinese company SG Automotive Group Co was considering setting up a vehicle assembly plant in the country, including electric buses, a project that could create up to 3,000 jobs.

PVJ/ADB // ADB.

Lusa