Mozambique allocated over €1.1 million to community programmes from mining and oil revenues in 2023, focusing on local development projects. The government has mandated 10% of mining tax revenues for this purpose, supporting initiatives in education, health, and infrastructure. Notable fund recipients include Nyamanhumbir, Benga, and Pande, with guidelines set to ensure transparency in fund allocation.
In 2023, the Mozambican government allocated over 77.1 million meticais (approximately €1.1 million) to community development initiatives funded by revenues from mining and oil operations. This funding is part of the government’s effort to promote local projects that arise from the social accountability of mining and oil companies, as outlined in the Citizen Account 2023 report from the Ministry of Economy and Finance.
The community of Nyamanhumbir in Montepuez district received the largest share, with funding amounting to 21,405,750 meticais (€322,500) directed toward local ruby exploitation projects. Furthermore, the community of Benga in Tete province received 15,260,670 meticais (€230,000) while Pande in Inhambane province was allocated 7,333,680 meticais (€110,500) for natural gas-related projects.
The Mozambican government has decided that 10% of the tax revenues generated from mining and oil extraction will be allocated to significant community projects aimed at benefiting local populations. This initiative is rooted in a decree that aims to effectively govern the allocation of revenue towards development efforts in the respective provinces, districts, and local communities impacted by resource exploitation.
Specifically, the decree mandates that 7.25% of the revenues from the Mining Production Tax and Oil Production Tax be designated for structural developments while 2.75% will directly support local communities. “Structuring projects” refer to initiatives that enhance the productive sector, addressing critical areas such as technical education, health, agriculture, and necessary infrastructure like dams and irrigation systems.
The financing of these projects will be coordinated by Local Consultative Councils, ensuring transparency and alignment with District Development Plans. Projects encompass various domains such as education, where classrooms will be built and equipped, and health services, including the construction of community health facilities. Additional initiatives will support agricultural practices, aquaculture, infrastructure improvements, and essential services related to water and sanitation.
In conclusion, Mozambique’s commitment to channeling mining and oil revenues into community development reflects a strategic approach to resource management. By allocating funds for local projects and engaging the Local Consultative Councils, the initiative aims to enhance the living standards in mining and oil-dependent communities. This effort not only promotes social responsibility among resource companies but also ensures that local populations benefit from the exploitation of their natural resources.
Original Source: clubofmozambique.com
