Mozambique Ministry of Finance: CAE UGEA Replacement Clarification

• Mozambique's Ministry of Finance clarified on Wednesday, 23 September, that the State Procurement Centre (CAE) will not replace or eliminate existing Procurement Management and Execution Units (UGEAs).
• The State Procurement Centre (CAE) was established by Decree No. 22/2026 of 8 June as part of public procurement reform.
• Both the CAE and the UGEAs will continue to operate within Mozambique's public procurement system.
• This clarification is crucial for stakeholders to understand the ongoing roles of both entities in tender processes.

On Wednesday, 23 September, the Ministry unequivocally stated that the CAE is not intended to replace or eliminate the existing Procurement Management and Execution Units (Unidades Gestoras e Executoras de Aquisições, UGEAs).

Mozambique's Ministry of Finance recently issued a significant clarification regarding the ongoing public procurement reform, specifically addressing the role of the newly established State Procurement Centre (Central de Aquisições do Estado, CAE). On Wednesday, 23 September, the Ministry unequivocally stated that the CAE is not intended to replace or eliminate the existing Procurement Management and Execution Units (Unidades Gestoras e Executoras de Aquisições, UGEAs). This Mozambique CAE UGEA replacement clarification aims to prevent any misunderstanding about the operational structure of the country's public purchasing system.

The announcement comes as a crucial update for all stakeholders involved in government tenders and contracts. The Ministry's statement underscores that both entities will continue to play distinct, yet complementary, roles within the reformed framework. This ensures continuity and clarity for businesses and individuals engaging with the Mozambican public sector, dispelling any notions that the introduction of the CAE would render the UGEAs obsolete.

The State Procurement Centre (CAE) was formally established through Decree No. 22/2026, enacted on 8 June, as a pivotal component of Mozambique's broader public procurement reform initiatives. This legislative step aimed to modernize and streamline the acquisition processes across various government bodies. However, the recent clarification from the Mozambique Ministry of Finance procurement department highlights that the creation of the CAE does not signify the dismantling of the traditional UGEA structure.

Instead, the Unidades Gestoras e Executoras de Aquisições Mozambique are confirmed to remain active and integral to the procurement landscape. This legal interpretation confirms a dual-entity system, where the CAE operates alongside the UGEAs, rather than superseding them entirely. Understanding this nuanced relationship is essential for navigating the legal and administrative requirements of public tenders in the country.

The Ministry of Finance's explicit statement carries substantial weight for legal professionals, compliance officers, and companies operating or planning to operate within Mozambique's public procurement sector. It mandates that due diligence must continue to encompass both the Central de Aquisições do Estado UGEA and the traditional UGEAs, as both will retain responsibilities in tender processes. This ensures that all parties correctly identify and engage with the appropriate authorities for different stages and types of procurement activities.

This clarification is vital for preventing misinterpretations of the Mozambique public procurement reform Decree 22/2026. It reinforces the need for a comprehensive understanding of the roles and responsibilities of each entity, ensuring proper engagement and adherence to regulations. The continued active presence of the existing UGEAs alongside the new Mozambique State Procurement Centre UGEA means that a thorough and updated approach to compliance and tender participation remains paramount.

Lawyers and compliance officers advising on public procurement in Mozambique must understand that the existing UGEAs remain active alongside the new State Procurement Centre (CAE), requiring continued due diligence on the roles and responsibilities of both entities in tender processes. This clarification prevents misinterpretation of the procurement reform and ensures proper engagement with all relevant authorities.

Source: Original reporting via {source}