MAPUTO, Nov 3 – Standard Bank and the Mozambique Oil and Gas Chamber have signed a memorandum of understanding (MoU) to strengthen the participation of domestic businesses in supply chains linked to the country’s major oil and gas projects.
The agreement, signed in Maputo on Monday, 2 November, focuses on improving access to finance, building business capacity and connecting national micro, small and medium-sized enterprises (MSMEs) with major energy project operators.
The partnership seeks to address barriers that have limited the ability of Mozambican suppliers to secure and execute contracts in the country’s expanding liquefied natural gas (LNG) sector.
Florival Mucave, Chairman of the Chamber’s Board of Directors, said greater participation by domestic businesses would require coordinated support from financial institutions, business organisations and project developers.
“No institution, on its own, can drive significant participation by national businesses in the oil and gas industry,” Mucave said.
He noted that making commercial opportunities available to local companies was only one part of the challenge. Businesses also need the technical capabilities, financial resources and operational capacity to compete for contracts and fulfil their obligations.
“Our collective ambition must be to ensure that, as business opportunities emerge in connection with the supply chains of liquefied natural gas (LNG) projects, Mozambican companies not only know about these opportunities but are also increasingly prepared, in terms of capacity and financial strength, to compete, successfully execute contracts and grow sustainably,” he said.
Access to working capital remains a significant constraint for domestic suppliers. Citing a 2024 MozUp study, Mucave said only 27% of the 104 suppliers surveyed had bank loans, while 84% reported that formal financing sources covered less than half of their funding requirements.
The financing challenge is compounded by payment cycles in the oil and gas industry. Suppliers may need to cover operational costs for between 90 and 120 days before receiving payment for completed services.
For Mucave, this means securing a contract does not necessarily guarantee that a company has the financial capacity to deliver it.
Standard Bank’s Director of Business and Commercial Banking, Márcia Karim, said the partnership was designed to address these constraints through an integrated support model rather than relying solely on conventional lending.
“We therefore believe that financing, although essential, is not enough. An integrated approach is needed, based on business capacity-building, access to finance and effective links with markets,” Karim said.
Under the agreement, support for MSMEs is expected to include training, business preparation and access to financing solutions, while helping local suppliers understand and meet the technical, financial and operational requirements of major energy projects.
Karim also highlighted the bank’s previous business development initiatives. Between 2021 and 2024, Standard Bank organised five editions of its iCreate programme, recording approximately 120 participations by companies and entrepreneurs across different sectors.
In 2025, its business masterclasses attracted more than 1,600 participants, covering financial management, access to finance, digital marketing and business strategy. The bank also operates Empreenda, a digital platform offering 28 free entrepreneurship modules.
João Guirengane, Standard Bank’s Director of Corporate and Investment Banking, said Mozambique’s gas developments could create opportunities to strengthen domestic suppliers and stimulate wider economic activity.
He argued that banks should play a broader role in connecting local businesses with commercial opportunities, extending beyond traditional services such as loans and payment processing.
“We want to do a little more than that: incubate companies, facilitate their introduction to major projects and drive this growth,” Guirengane said.
He added that cooperation between Standard Bank, the Chamber and energy project operators would be important in converting investment opportunities into contracts that domestic companies are adequately equipped to execute.
The agreement comes as Mozambique seeks to increase the domestic economic benefits of its natural gas resources. Strengthening local supplier capacity and improving access to finance remain important considerations in ensuring that major LNG investments generate opportunities beyond the international energy companies developing the projects.
