Mozambique Allocates €1.1 Million from Mining and Oil Revenues to Community Development
The Mozambican government allocated 77.1 million meticais (€1.1 million) to community development from mining and oil revenues in 2023. Significant funds were designated for the Nyamanhumbir, Benga, and Pande communities. A decree was issued to direct 10% of related tax revenues towards structural projects and local community support, covering a variety of sectors.
In 2023, the Mozambican government allocated over 77.1 million meticais (approximately €1.1 million) to community development initiatives, derived from the revenues of mining and oil extraction. This funding adheres to the principles of social responsibility as mandated by the Ministry of Economy and Finance’s Citizen Account report.
The community of Nyamanhumbir in Montepuez district received the largest share of support, totaling 21,405,750 meticais (€322,500) for projects tied to ruby mining. Other notable allocations included 15,260,670 meticais (€230,000) for the Benga community, a coal mining region in Tete province, and 7,333,680 meticais (€110,500) for the Pande community associated with natural gas extraction in Inhambane province.
In a strategic move, Mozambique established a decree to direct 10% of tax revenues from mining and oil ventures to bolster structural projects and local communities. This decree stipulates that 7.25% of the Mining Production Tax and Oil Production Tax be dedicated to provincial projects, while 2.75% is reserved for local community development.
Structural projects, as defined by this measure, focus on fostering economic activity to advance local development, covering sectors such as technical and vocational education, healthcare, agriculture, and vital infrastructure. Eligible projects include roads, bridges, sanitation facilities, and irrigation systems.
The coordination of these community projects will be overseen by the Local Consultative Council, emphasizing transparency and alignment with District Development Plans. Initiatives may target education, health, agriculture, fisheries, and vital infrastructure, ensuring a comprehensive approach to community enhancement across various sectors.
The Mozambican government has established a formal mechanism to allocate significant resources from mining and oil revenues toward community development. This initiative not only promotes economic growth at the local level but also ensures that essential services and infrastructure are expanded to benefit communities directly impacted by natural resource extraction.
Original Source: clubofmozambique.com
