The Mozambican government has injected 1.159 billion meticais (16.9 million euros) into community development programs this year, utilizing revenue generated from the nation’s burgeoning mining and oil sectors.
This move reflects a concerted effort to ensure that the benefits of resource extraction are felt at the grassroots level.
According to official government figures, the entirety of the allocated funds, split between provincial and district levels, has been disbursed. This represents 10% of the tax revenues derived from mining and oil production, a policy implemented in 2023 to foster sustainable development in resource-rich regions.
The distribution of these funds is governed by a decree designed to regulate the allocation and management of revenues earmarked for provinces, districts, and local communities where mining and oil projects operate. This legislation mandates that 7.25% of the revenue from Mining Production Tax and Oil Production Tax goes towards provincial and district “structural projects,” while 2.75% is directed to local communities.
Manica province received the largest share of provincial funds, totalling 258.8 million meticais (3.8 million euros), followed by Zambézia and Cabo Delgado. At the district level, the community of Nyamanhumbir in Montepuez, a region known for ruby mining, received 21.1 million meticais (306,000 euros). The Benga community in Moatize, a coal mining area, received 11.4 million meticais (166,000 euros).
The government defines “structural projects” as those that boost the production sector and contribute to regional development. These projects, managed by provincial authorities, encompass technical and professional education, healthcare, agriculture, infrastructure, industry, commerce, and fisheries.
Community-level projects, coordinated by the Local Consultative Council, focus on education, health, agriculture, fisheries, forestry, transportation, and water and sanitation. These initiatives are designed to align with the District Development Plan and are implemented with transparency and community participation.
This allocation of resource revenue underscores Mozambique’s commitment to equitable development and its recognition of the need to mitigate the potential negative impacts of extractive industries on local communities. By investing in essential services and infrastructure, the government aims to create a more sustainable and prosperous future for its citizens.
