UAE and Mozambique Conclude Trade Pact Talks as Non-Oil Trade Nears $2.6 Billion
The deal was announced during President Daniel Chapo's visit to Abu Dhabi and still has to be signed and ratified before tariffs fall.
By Nakoda News Desk
·2 min read
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The United Arab Emirates and Mozambique have finished negotiating a Comprehensive Economic Partnership Agreement. The final terms were announced in Abu Dhabi on Saturday while Mozambican President Daniel Francisco Chapo was in the UAE on an official visit.
The conclusion of talks was announced by Thani bin Ahmed Al Zeyoudi, the UAE's Minister of Foreign Trade, and Basílio Zefanias Muhate, Mozambique's Minister of Economy, according to the Emirates News Agency. The agreement still has to be signed and ratified. Once it takes effect, it is meant to lower customs duties, remove trade barriers and widen market access for goods and services, and give investors a stable framework. Neither side released tariff schedules or a date for the signing.
The pact formalises a trade relationship that has grown quickly. Non-oil trade between the two countries reached about $2.6 billion in 2025, up 91.6% on 2024 and almost five times the 2019 figure, according to the announcement. Growth has continued this year: non-oil trade came to $2.5 billion in the first nine months of 2026, 49% more than in the same period of 2025.
Earlier in the visit, the two governments exchanged memorandums of understanding on energy and tourism. At that stage the trade agreement was described as still under negotiation.
Gas, Ports and Minerals
The announcement names energy, logistics, agriculture and food security, mining and critical minerals, and manufacturing as the main sectors for cooperation. Two large UAE investments already sit in those sectors. XRG, the international energy investment arm, holds a 10% stake in the Area 4 concession of the Rovuma Basin, the offshore gas region in Mozambique's north. DP World is involved in expanding the Port of Maputo, which the UAE described as a key gateway for trade in Southern Africa.
Al Zeyoudi called the conclusion of talks "a significant milestone in the UAE's efforts to expand its network of trade and investment partnerships across the African continent." He said Mozambique's location in East Africa and its economic potential offered opportunities for Emirati businesses. He said the agreement would support more efficient supply chains and strengthen the UAE's role as a hub connecting markets and trade corridors.
Muhate presented the agreement as a route for Mozambican exporters into wider markets. "This agreement marks a new phase in our relations with the UAE," he said. He added that it would help Mozambican producers reach new markets through the UAE and encourage Emirati investment in agro-processing, industry and infrastructure.
An Expanding African Network
The UAE started its CEPA programme in September 2021 as the centrepiece of its foreign trade policy. Since then it has concluded agreements with economies in Asia, Africa, Europe and the Americas. Mozambique gives the programme another partner on Africa's eastern seaboard, where Emirati port operators and energy investors are already active.
The agreement will not change tariffs until both countries sign it and complete their ratification procedures. Neither government has said when that will happen.
Sources
- Emirates News Agency · UAE, Mozambique conclude CEPA negotiations as non-oil trade reaches around $2.6 bn
- وكالة أنباء الإمارات · الإمارات وموزمبيق تختتمان بنجاح مفاوضات اتفاقية الشراكة الاقتصادية الشاملة
- البيان · الإمارات وموزمبيق تختتمان بنجاح مفاوضات اتفاقية الشراكة الاقتصادية الشاملة
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Nakoda News Desk
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