Industrial recovery faces a major obstacle
Maputo — Mozambique’s manufacturing industry continues to face difficulties following the suspension of operations at the Mozal aluminium smelter in March 2026, according to the Bank of Mozambique’s latest economic outlook report, cited by Lusa on 7 October.
Mozal, located in the Beluluane industrial area near Maputo, is one of the country’s most significant industrial operations. Its shutdown followed unsuccessful negotiations over the cost of electricity required to maintain production.
The Bank of Mozambique described the short-term economic outlook as pointing towards a moderate recovery, while noting that the secondary sector continued to face challenges associated with the interruption of Mozal’s activities.
Why aluminium matters to the economy
Large industrial operations can influence export earnings, electricity demand, logistics, employment and the performance of domestic suppliers.
A prolonged interruption may also affect companies that provide transport, maintenance, industrial materials and other services to the manufacturing sector.
However, the full economic impact cannot be established from the shutdown alone. It requires updated information on export losses, employment, supplier contracts, fiscal revenue and the value of production that has been suspended.
The electricity question
The dispute over electricity costs exposes a wider policy challenge: how can Mozambique provide competitive energy to large industrial users while protecting the financial sustainability of its electricity sector?
The answer matters not only to aluminium production but also to future investments in manufacturing, mineral processing and other energy-intensive industries.
The central question is whether Mozambique can develop an electricity-pricing framework that attracts investment while ensuring that the benefits of industrial production reach the wider economy.