Mozambique incurs R110m oilseed smuggling losses

A vital contributor to foreign exchange earnings for Mozambique has been undermined by widespread illegal exports, with authorities estimating losses of around 430 million meticais (about R110 million) over the past three years.

Up to 35% of the country’s oilseed production is believed to be diverted through informal channels, bypassing formal customs and tax systems, according to senior government officials.

“The oilseed sector has significant economic weight, generating more than $150 million (approximately R2.47 billion) 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.

Baptista was speaking in Maputo last week at a meeting focused on curbing illegal exports and strengthening the national economy, Lusa news agency reported.

He highlighted that oilseeds were viewed as a key driver for export diversification and foreign currency inflows, yet significant volumes continued to leak out during each marketing season.

“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 said.

Baptista pointed to discrepancies in international trade data as evidence of the scale of the problem. Major destinations for the diverted oilseeds include China, India, Japan, Singapore and South Africa.

“Data from customs authorities in China and Japan indicate that, over the past three years alone, Mozambique has exported more than 350 000 tonnes of oilseeds to these countries. However, compared with official national records, this reveals a deficit of around $270m (approximately R4.43bn),” he said.

Soybean smuggling has also emerged as a notable concern.

Ancha Ismail, director of the Central Value Aggregation Services for Markets at the Mozambican Institute of Cotton and Oilseed Crops, reported that around 35 000 tonnes had been illegally moved to Malawi from border districts in Zambézia and Niassa provinces during the same period.

“These operations occurred outside the formal customs and tax control systems,” she said.