Mozambique Allocates €1.1 Million from Mining and Oil Revenues for Community Development

In 2023, Mozambique’s government allocated €1.1 million from mining and oil revenues to community development programs. Key projects funded include infrastructure improvement in education, health, agriculture, and essential services. A new decree mandates 10% of tax revenues be used for local community benefit, ensuring resource exploitation translates into tangible advantages for affected regions.

In 2023, the government of Mozambique allocated over 77.1 million meticais (approximately €1.1 million) to local community development programs sourced from mining and oil revenues. This allocation is detailed in the Citizen Account 2023 report released by the Ministry of Economy and Finance, emphasizing the social responsibility of mining and oil corporations to fund local initiatives.

The Nyamanhumbir community in Montepuez district received the highest funding, totaling 21,405,750 meticais (€322,500), attributed to ruby mining activities in the Cabo Delgado province. Additionally, the community of Benga in Moatize district was allocated 15,260,670 meticais (€230,000), while Pande community, located in the natural gas extraction zone of Govuro district, received 7,333,680 meticais (€110,500).

Mozambique’s government enacted a regulation mandating that 10% of tax revenues from mining and oil production be directed toward structural projects benefiting local communities. This initiative was initiated through a decree aimed at clarifying the distribution and governance of revenues for community development.

According to the decree, 7.25% of the Mining Production Tax and Oil Production Tax shall be dedicated to provincial and district infrastructure projects, while 2.75% will specifically be allocated to local communities. Eligible projects comprise those that enhance local economies, technical education, health services, agriculture, and essential infrastructure such as transport, water, and sanitation.

Mozambique’s allocation of €1.1 million in 2023 towards community development projects, funded by mining and oil revenues, exemplifies the government’s commitment to social responsibility. With a structured approach to distributing tax revenues, the government aims to uplift local communities by fostering development through targeted projects in various sectors, including education, health, and infrastructure, ensuring the benefits of natural resource exploitation are shared equitably.

Original Source: clubofmozambique.com