Mozambique's Cabinet Approves Creation of State Fuel Procurement Company

 The government of Mozambique has approved the creation of the National Fuel Procurement Company (ENAPP) — a state entity responsible for procuring and managing fuel supplies to the country, the AIM agency reported on July 15, citing government spokesperson and Minister of State Administration Inocêncio Impissa.

"The company has legal entity status, as well as administrative, financial, and asset independence; it will operate nationwide, with its headquarters located in the city of Maputo," Impissa stated.

The company will manage fuel procurement for the domestic market — including planning, contract management, coordination, and oversight of fuel supply operations. Impissa noted that the fuel crisis caused by the Middle East conflict was among the factors influencing the decision to establish ENAPP.

"The current fuel crisis has prompted us to rethink the situation. The creation of this company represents a fundamental shift in the fuel procurement model currently used in the country. The aim of this change is to ensure the state has more effective control over the import and supply chain of fuels, which are strategically important for the functioning of the national economy," he emphasized.

In March, amid the escalation of the conflict in the Middle East and the blockade of the Strait of Hormuz — a key maritime artery through which a significant portion of global oil supplies pass — prices for gasoline, diesel, and gas rose sharply in African countries.

In July of last year, energy company Aiteo and Mozambique signed a contract for the engineering, procurement, and construction of an oil refinery with a capacity of 240,000 barrels per day.