Mozambican businesses seeking contracts in the country’s liquefied natural gas industry may need to finance up to four months of operations before receiving payment, exposing a major obstacle to local participation in one of the country’s most significant investment sectors.

A 2024 MozUp study of 104 suppliers found that only 27% had bank loans, while 84% said formal financing covered less than half of their funding needs.

The figures highlight the financial constraints facing local companies as they seek to compete for contracts linked to major energy projects.

The financing challenge is now central to a new partnership between Standard Bank and the Mozambique Oil and Gas Chamber, which aims to help national micro, small and medium-sized enterprises strengthen their capacity to participate in the industry.

The financial gap behind local participation

For smaller suppliers, the challenge extends beyond identifying available contracts. Businesses must have sufficient working capital to cover operational expenses while meeting the requirements of major project operators.

Mozambique Oil and Gas Chamber chairman Florival Mucave said companies could face payment delays of 90 to 120 days after delivering services, making financial preparedness essential to their ability to execute contracts.

He said greater participation by national businesses would require cooperation among financial institutions, business organisations and project developers.

The Chamber and Standard Bank signed a memorandum of understanding in Maputo on Nov. 2 to address these constraints through business capacity-building, access to finance and connections with industry operators.

Building suppliers before contracts arrive

Standard Bank’s approach combines financing with business preparation, reflecting the need for suppliers to demonstrate technical, financial and operational readiness before entering major projects.

Márcia Karim, the bank’s director of Business and Commercial Banking, said the partnership would help companies prepare for industry requirements while improving their access to financing solutions and commercial opportunities.

The initiative builds on the bank’s previous entrepreneurship programmes. Between 2021 and 2024, five editions of its iCreate programme recorded about 120 participations by companies and entrepreneurs from different sectors.

In 2025, Standard Bank’s masterclasses attracted more than 1,600 participants, with training covering financial management, access to finance, digital marketing and business strategy.

The bank also operates Empreenda, a digital platform offering 28 free entrepreneurship modules.

Connecting local companies to major projects

Standard Bank’s director of Corporate and Investment Banking, João Guirengane, said the bank intended to extend its role beyond traditional financial services to include business incubation and commercial introductions.

The partnership with the Chamber and energy operators is expected to help prepared companies establish connections with major projects and pursue contracts they have the capacity to deliver.

For Mozambique’s smaller businesses, the opportunity will depend not only on the availability of energy-sector contracts but also on their ability to finance operations, meet technical requirements and sustain delivery until payments arrive.