Maputo, May 20, 2025 (Lusa) - The Mozambican government plans to transfer 722 million meticais (€10.2 million) to community development programmes this year, using resources obtained from mining and oil extraction, according to official data consulted on Tuesday by Lusa.
According to government estimates, by 2025, 7.224 billion meticais (€101.8 million) is expected to come from taxes on mining and oil production, of which almost 5.842 million meticais (€82.4 million) correspond to mining production and 1,382 million meticais (€19.4 million) to oil production.
"It is from the total amount that the 10% tax is deducted for the development of the provinces, districts and local communities where the projects are located," recalls the Government document on the legislation governing these annual transfers.
"This tax system is part of an effort to ensure alignment with international taxation practices in the sector and promote responsible fiscal management of natural resources," it adds.
However, this represents a decrease compared to the 1.159 billion meticais (€16.4 million) that the State transferred in 2024 to community development programmes with resources obtained from mining and oil extraction, according to budget execution data previously reported by Lusa.
In 2025, the government plans to transfer 523.7 million meticais (€7.3 million) corresponding to the 7.25% rate to the provinces, and the remaining 198.7 million meticais (€2.8 million), equivalent to 2.75%, to the communities, "in accordance with the legislation in force".
In 2023, Mozambique began allocating 10% of tax revenues from mining and oil production to structural projects in the provinces and to support local communities.
The measure was determined by a decree that recognises the "need to regulate the criteria for allocating and managing the percentage of revenues earmarked for the development of provinces, districts and local communities where mining and oil exploration projects are implemented".
The decree stipulates that 7.25% of revenue collected from the Mining Production Tax and the Oil Production Tax will be allocated to the province and districts, namely for 'structural' projects, and 2.75% to ‘local communities’.
By ‘structural projects,’ the Mozambican government means "those that boost the productive sector, aiming at the collective development of a given region," under the responsibility of provincial authorities, with those related to technical and vocational education, health, agriculture, including production support infrastructure, dams and irrigation, as well as industry, trade and fisheries, infrastructure of social and economic interest, namely land use planning, roads, bridges and electrification, water and sanitation, among others.
The financing of projects designed and selected to support local communities should result from coordination by the Local Advisory Council, "according to principles of transparency, participation and relevance to the District Development Plan".
The projects involve areas such as education, in the construction of classrooms and their equipment, technical and vocational training, health, with community porches and their equipment, agriculture and livestock, with community irrigation, animal husbandry and treatment, aquaculture and dams.
Projects may also be launched for fisheries and fishing infrastructure, forestry, through the revitalisation of community forests, as well as roads, bridges and means of transport, namely small boats, of strictly community interest, and in the water and sanitation sector.
PVJ/AYLS // AYLS
Lusa
