Mozambique Ministry of Finance Clarifies State Procurement Centre Role

The Ministry of Finance in Mozambique clarified on Wednesday, 23 September, that the newly established State Procurement Centre (Central de Aquisições do Estado, CAE) will not replace or eliminate the existing Procurement Management and Execution Units (Unidades Gestoras e Executoras de Aquisições, UGEAs).

This clarification is highly significant for all stakeholders involved in public procurement within Mozambique, including government agencies, state-owned enterprises, and private sector contractors. It directly addresses potential ambiguities regarding the operational structure of public purchasing following the introduction of the CAE, which was established as part of a broader reform initiative. For government entities, this means UGEAs will retain their functional roles, necessitating a clear understanding of the division of responsibilities and coordination mechanisms between the CAE and these units. For businesses, it indicates that while a central procurement body now exists, the day-to-day management and execution of acquisitions will continue to involve UGEAs, requiring ongoing engagement with these units.

The legal context for this development is the ongoing reform of public procurement in Mozambique, specifically the establishment of the State Procurement Centre (CAE) through Decree No. 22/2026 of 8 June. This decree serves as a foundational legal instrument shaping the new procurement landscape. The primary key party involved in issuing this clarification is the Ministry of Finance, which holds oversight responsibility for public financial management and procurement policy in Mozambique. Other key parties include the State Procurement Centre (CAE) itself, as the newly introduced central entity, and the various Procurement Management and Execution Units (UGEAs) operating across different government departments and public institutions, whose roles are now being more precisely defined. The excerpt does not report any specific judicial rulings or court involvement, indicating this is a policy clarification from the executive branch.

Attorneys advising clients involved in public procurement in Mozambique should closely monitor the detailed implementation guidelines and any further regulations issued by the Ministry of Finance concerning Decree No. 22/2026. It is crucial for practitioners to understand the precise division of labor, authority, and procedural requirements between the CAE and UGEAs, particularly regarding tender processes, contract award, and post-award management. Businesses should ensure their internal procurement teams and legal counsel are fully updated on these structural changes to maintain compliance and avoid procedural missteps. Practitioners should also advise clients to establish clear communication channels with both the CAE and relevant UGEAs to effectively navigate the evolving public procurement landscape.