In 2023, Mozambique allocated over €1.1M from mining and oil revenues to local community development initiatives. Major recipients include Nyamanhumbir, Benga, and Pande. This funding is part of a policy to dedicate 10% of related tax revenues for local support, focusing on sustainable development across various sectors.
In 2023, the Mozambican state allocated over 77.1 million meticais (approximately €1.1 million) to community development initiatives funded through revenues from mining and oil extraction. This funding was outlined in the Citizen Account 2023 report by the Ministry of Economy and Finance and is meant to promote local projects stemming from the social responsibility commitments of mining and oil companies.
The community of Nyamanhumbir in the Montepuez district received the largest allocation, totaling 21,405,750 meticais (€322,500) for local projects derived from ruby exploitation in Cabo Delgado province. Other communities also received notable funding: Benga, a coal-mining area in Moatize, received 15,260,670 meticais (€230,000), while Pande, involved in natural gas extraction in Govuro, was allocated 7,333,680 meticais (€110,500).
The Mozambican government decided to allocate 10% of tax revenues from mining and oil activities specifically for structural projects in relevant provinces and community support. This initiative is regulated by a decree that establishes criteria for the allocation and management of these funds, ensuring that a portion of the revenue directly benefits the communities impacted by these industries.
According to the decree, 7.25% of the revenues will fund provincial and district structuring projects aimed at stimulating regional development. The remaining 2.75% will support local communities. These structures may involve projects across various sectors such as education, vocational training, health, agriculture, and infrastructure development, including roads, bridges, and water sanitation facilities.
The Local Consultative Council will oversee the design and selection of community projects, ensuring they align with principles of transparency and are relevant to the District Development Plan. Educational facilities, health amenities, irrigation systems, and community engagement in fisheries, forestry, and transport are all potential areas of investment to enhance regional livelihoods.
Mozambique is channeling significant revenues from mining and oil operations into community development projects, benefiting areas directly affected by resource extraction. With a systematic allocation of tax revenues, the government aims to foster local development and support through specific funding geared toward education, health, agriculture, and infrastructure. This strategic approach emphasizes the importance of community involvement and aligned development with local needs for sustainable growth.
Original Source: clubofmozambique.com
