What You Need to Know
Mozambique has incurred losses of approximately €5.7 million over three years due to illegal oilseed exports. Official estimates suggest that between 25% and 35% of oilseed production is diverted from formal trade channels, significantly impacting the national economy. The oilseed sector is crucial for Mozambique, contributing over US$150 million annually to agricultural exports.
Africa-Press – Mozambique. Mozambique has lost around 430 million meticais (€5.7 million) over the past three years due to the illegal export of oilseeds, official sources report, estimating that up to 35% of production is diverted outside formal channels.
“The oilseed sector has significant economic weight, generating more than US$150 million (€128.5 million) per year for the balance of payments. This figure represents over 30% of the country’s total agricultural export value,” said Acubar Baptista, Permanent Secretary of the Ministry of Agriculture, Environment and Fisheries.
Speaking at a meeting on illegal exports in the sector and their impact on “building a stronger national economy,” held on Wednesday in Maputo, Baptista explained that despite oilseeds being positioned as a strategic vector for diversifying the export base and attracting foreign currency, the country loses substantial amounts each campaign through illegal trade.
“It is estimated that between 25% and 35% of oilseed production is diverted outside formal channels, causing serious consequences for the national economy. For example, over the past three years, these practices have resulted in revenue losses of around 430 million meticais,” he noted.
Baptista also warned of the impact of these practices on international trade, describing it as a crime with major markets including China, India, Japan, Singapore and South Africa.
“Data from customs authorities in China and Japan indicate that, over the past three years alone, Mozambique exported more than 350,000 tonnes of oilseeds to these countries. However, compared with official national records, this reveals a deficit of around US$270 million (€231.4 million),” he explained.
Ancha Ismail, director of the Central Value Aggregation Services for Markets at the Mozambican Institute of Cotton and Oilseed Crops, said the country also faced soy smuggling during the same period, particularly in the border districts of Zambézia and Niassa, where around 35,000 tonnes were illegally transported to Malawi.
“These operations occurred outside the formal customs and tax control systems,” she added.
The illegal export of oilseeds has emerged as a significant issue in Mozambique, affecting the country’s agricultural economy. With oilseeds generating substantial revenue, the diversion of production to informal markets poses a threat to economic stability and growth. The government is now focusing on addressing these illegal practices to protect its agricultural sector and enhance foreign currency earnings. Historical data indicates that Mozambique has struggled with similar issues in various agricultural sectors, highlighting the need for stronger regulatory frameworks.
