In 2023, Mozambique allocated €1.1 million from mining and oil revenues to community development programs, emphasizing social responsibility. Key allocations included funding for educational and agricultural projects in Nyamanhumbir, Benga, and Pande. A governmental decree mandates that 10% of mining and oil tax revenues support local initiatives, ensuring transparency and community participation in project selection.
In 2023, Mozambique allocated over 77.1 million meticais (approximately €1.1 million) to community development programs funded by revenues from mining and oil extraction. This funding aims to enhance local development initiatives, as highlighted in the Citizen Account 2023 report by the Ministry of Economy and Finance, emphasizing the social responsibility of mining and oil companies.
The community of Nyamanhumbir in Montepuez received the largest portion, totaling 21,405,750 meticais (€322,500) directed at local projects from ruby mining. Additionally, 15,260,670 meticais (€230,000) were designated for the Benga community in Moatize, a coal mining region, while the Pande community, known for natural gas extraction, received 7,333,680 meticais (€110,500).
This year, Mozambique implemented a policy to allocate 10% of tax revenues from mining and oil activities to bolster local communities and structural projects. A decree was enacted to establish guidelines for the management of this revenue, affirming the importance of local development where resource extraction occurs.
According to the decree, 7.25% of taxes from the Mining and Oil Production Tax will support provincial and district structuring projects, while 2.75% will directly benefit local communities. These structuring projects aim to stimulate the productive sector and enhance regional development, falling under the jurisdiction of provincial authorities.
Eligible projects encompass various sectors, including technical and vocational education, health services, agriculture, and infrastructure developments such as roads and electrification. The Local Consultative Council will oversee the selection of projects, ensuring they align with the District Development Plan through transparency and participation.
Areas targeted for development include education—such as classroom construction—vocational training, health improvements, and agricultural advancements like irrigation and aquaculture. The initiatives also extend to fisheries, forestry enhancement, and critical infrastructure like transport modalities, demonstrating comprehensive community engagement in local governance.
In summary, Mozambique’s initiative to allocate a significant portion of mining and oil revenues to local community development underscores the government’s commitment to social responsibility and sustainable growth. The focus on structuring projects across various sectors, including education and infrastructure, is designed to enhance the quality of life and stimulate economic activity within the regions affected by resource extraction. This approach emphasizes community involvement and transparency, aiming for impactful and sustainable outcomes for Mozambican society.
Original Source: clubofmozambique.com
