Mozambique’s Private Sector Urges Urgent Action Over Mozal’s Future

MANO FLORIAN|August 26, 2025

INCLUSION: CTA President Álvaro Massingue urged that ongoing negotiations should involve all Mozal stakeholders, with CTA taking part as a legitimate representative of national business interests. Photo: Mozambique Chamber of Commerce

The Confederation of Economic Associations of Mozambique (CTA) has raised alarm over the uncertainty surrounding Mozal Aluminium and its impact on the national economy, calling recent developments “inadmissible” and appealing for the reinstatement of Mozambican companies affected by contract terminations.

The concerns follow an announcement by South32, Mozal’s majority shareholder, that operations at the aluminium smelter could cease from March 2026 if no viable solution is found for electricity supply once its current agreement with South Africa’s Eskom ends.

The situation escalated after Mozal abruptly terminated contracts with around 20 Mozambican suppliers, jeopardising nearly 1,000 jobs and threatening the survival of businesses that have worked with the smelter for decades.

Speaking at a press conference, CTA President Álvaro Massingue expressed the private sector’s unease, stressing that it was unacceptable for a company that had benefited significantly from Mozambique’s fiscal, institutional, and economic environment to take decisions that destabilise the local business fabric and undermine investor confidence.

Massingue urged that ongoing negotiations should involve all Mozal stakeholders — including South32, the Government of Mozambique, South Africa’s Industrial Development Corporation (IDC), and Mitsubishi Corporation — with CTA taking part as a legitimate representative of national business interests.

“Decisions on Mozal’s future must reflect the interests of the country and its productive sector. Only then can we achieve sustainable, balanced, and fair solutions,” he said. He called on South32 to urgently review its position, reintegrate affected Mozambican companies, and resume operations with social responsibility, respect for commitments made, and alignment with national development goals.

Massingue also appealed to the Government to act firmly yet constructively, ensuring Mozambique’s strategic interests are safeguarded while keeping Mozal anchored as a key national economic asset — but with stronger local integration.