The Mozambican state allocated €1.1 million from mining and oil revenues to community programs in 2023. Notable allocations included funds for the Nyamanhumbir, Benga, and Pande communities. This initiative supports various projects in education, health, and infrastructure, reinforcing the social responsibility of mining and oil companies and enhancing local development.
In 2023, the Mozambican government allocated over 77.1 million meticais (approximately €1.1 million) to community development programs funded by revenues from mining and oil extraction. This funding, as reported in the Citizen Account 2023 by the Ministry of Economy and Finance, directly supports local projects reflecting the social responsibility of mining and oil companies.
The community of Nyamanhumbir, located in the Montepuez district, received the highest contribution, totaling 21,405,750 meticais (€322,500) in funding for local projects associated with ruby exploitation. Additionally, the Benga community in Moatize district was allocated 15,260,670 meticais (€230,000), while the Pande community in Govuro district received 7,333,680 meticais (€110,500) related to natural gas extraction.
In 2023, Mozambique instituted a policy that designates 10% of tax revenues from mining and oil activities for supporting structural projects within provinces and local communities. This initiative arises from a decree aimed at setting clear criteria for the allocation and management of revenues for the development of areas impacted by mining and oil exploration.
According to the decree, 7.25% of proceeds from the Mining Production Tax and Oil Production Tax are reserved for provincial and district projects, with the remaining 2.75% targeted toward local communities. These projects, described as “structuring ones,” include initiatives designed to enhance the productive sector and foster regional development.
The Mozambican government has outlined several funding opportunities, including projects in education, healthcare, agriculture, fisheries, and infrastructure, such as building schools and health facilities, supporting irrigation and aquaculture, and improving transportation networks. All projects must be aligned with the District Development Plan and initiated through the coordination of the Local Consultative Council, ensuring transparency and community involvement.
In summary, Mozambique’s initiative to allocate a portion of mining and oil revenues towards community development signifies a commitment to local empowerment. The approach not only underscores the social responsibility of resource extraction companies but also aims to stimulate regional growth through targeted investments in education, health, and infrastructure. By adhering to principles of transparency and community engagement, this program has the potential to significantly improve the quality of life for many residents in affected areas.
Original Source: clubofmozambique.com
