Mozambican government to change law to benefit national companies

23 March 2010

Maputo, Mozambique, 23 Mar – Public tenders involving amounts of up to 5 million meticais (US$180,000) will be reserved for Mozambican companies following revision of the decree-law regulating purchases by public services, Canal de Moçambique has reported.

The information was announced by Industry and Trade Minister Antonio Fernando, the online news channel specifies. He said the measure was part of a government program which tasked the Institute for the Promotion of Small and Medium Size Companies (Ipeme) with installing business orientation centres over the next five years.

On the sidelines of a meeting to announce the orientation centre inauguration scheduled for this 21 April, Fernando said there was an urgent need to revise that legal instrument in order to benefit small and medium sized national companies.

In public tenders involving large amounts, such companies should have the right to provide services for the equivalent of 10 percent of the total project value if the tender is awarded to a foreign company, he stated.

“If a foreign company wins a tender worth 50 million meticais to build a hospital or school, then small and medium sized national companies should use the allotted 10 percent to make desks in the case of schools or to assemble furniture if a hospital,” Fernando added.