UAE, Mozambique conclude CEPA talks as trade reaches around $2.6 billion

The United Arab Emirates and the Republic of Mozambique have concluded negotiations on a Comprehensive Economic Partnership Agreement (CEPA). The final terms of the agreement were announced on Saturday in Abu Dhabi. The announcement took place in the presence of Daniel Francisco Chapo, President of the Republic of Mozambique, who is on an official visit to the UAE.

The conclusion of negotiations was announced by Dr Thani Bin Ahmed Al Zeyoudi, Minister of Foreign Trade, and Basílio Zefanias Muhate, Minister of Economy of the Republic of Mozambique. Once signed, ratified and in force, the CEPA will reduce customs duties, remove trade barriers and expand market access, while providing a stable framework for investment.

Al Zeyoudi said, "Concluding CEPA negotiations with Mozambique marks a significant milestone in the UAE’s efforts to expand its network of trade and investment partnerships across the African continent. It reflects the commitment of both our nations to elevate economic relations toward broader integration and sustainable growth. Mozambique’s economic potential and vital location in East Africa offer promising opportunities, and this agreement will foster a more open and competitive environment for our business communities by facilitating market access for goods and services, encouraging mutual investment, and opening new avenues for cooperation in priority sectors.”

Al Zeyoudi added: “This partnership strengthens the UAE’s economic presence in African markets and reinforces our position as a global hub connecting markets and international trade corridors. By supporting more efficient and resilient supply chains, it will create new opportunities for businesses to grow and expand, enhance trade and investment flows, and deliver sustainable economic benefits for both our nations.”

Bilateral non-oil trade between the UAE and Mozambique reached approximately $2.6 billion in 2025, a 91.6% increase compared to 2024 and almost five times the value recorded in 2019. This momentum has continued into 2026, with non-oil trade reaching $2.5 billion in the first nine months of the year, a 49% increase on the same period in 2025.

Muhate said: “This agreement marks a new phase in our relations with the UAE. It will help Mozambican producers reach new markets through one of the world’s premier trade hubs, while encouraging Emirati investment in sectors such as agro-processing, industry and infrastructure.”

The CEPA is expected to open avenues for cooperation in priority sectors including energy, logistics, agriculture and food security, mining and critical minerals, and manufacturing. It builds on significant UAE investment in Mozambique, including XRG’s 10% stake in the Area 4 concession of the Rovuma Basin. It also builds on DP World’s role in the expansion of the Port of Maputo, a key gateway for trade in Southern Africa.

The CEPA program is a cornerstone of the UAE’s foreign trade agenda. Since the program’s launch in September 2021, several agreements have been concluded with promising economies across Asia, Africa, Europe and the Americas.

In January, the United Arab Emirates and the Republic of Mozambique have reviewed avenues to deepen economic cooperation during a UAE–Mozambique Business Roundtable held in Abu Dhabi on the sidelines of Abu Dhabi Sustainability Week, in the presence of Daniel Chapo, President of Mozambique.

The UAE delegation was led by Dr Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, and included Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, and Mansour Mohammed Ali Al Juwaied, UAE Ambassador to Mozambique, alongside senior officials and business leaders.

Mozambique was represented by Basilio Muhate, Minister of Economy, João Matlombe, Minister of Transport and Communications, and representatives of key economic sectors.

Welcoming President Chapo and his delegation, Dr Al Zeyoudi said the roundtable provided an important opportunity to align mutual interests and explore further areas of economic collaboration, underscoring the UAE’s appreciation for Mozambique’s efforts to strengthen bilateral relations.

He noted that sustained growth in non-oil trade highlights the benefits of closer ties, with bilateral trade reaching approximately $1.7 billion in the first nine months of 2025, reflecting a year-on-year increase of 57.8 per cent and exceeding by more than $300 million the total recorded for 2024.

Dr Al Zeyoudi said this momentum is mirrored in the expansion of mutual investment, with the UAE supporting Mozambique’s efforts to maximise the value of its natural gas sector, while also working to accelerate its energy transition through the development of solar power facilities.

He added that cooperation also extends to boosting agricultural production and expanding Maputo Port, enhancing Mozambique’s connectivity to global supply chains and supporting its exporters’ access to international markets.

Dr Al Zeyoudi emphasised that both countries recognise significant untapped potential for further cooperation, noting that Mozambique represents a high-potential, resource-rich economy aligned with the UAE’s investment priorities, while the UAE’s global connectivity provides Mozambique with a vital bridge to international markets.

The roundtable reviewed investment opportunities across a range of strategic sectors, including trade, finance, transport and ports, energy, artificial intelligence and agricultural production, reflecting the depth of the partnership and the shared commitment to sustainable economic growth.

Both sides praised the growing momentum in bilateral relations, highlighting the strength of economic ties and the expanding scope of mutual investment.

WAM