The Mozambican State’s revenue from the exploitation of mineral resources by mega-projects fell by 28.7%, in the first half of 2023.
The amount earned dropped from 4.8 billion meticais in the first half of 2022 to 3.4 billion meticais from January to June 2023 (from 75 million dollars to 53.1 million dollars, at the current exchange rate).
Much of this fall is due to the dramatic collapse in the price of coal on the world market, which has forced the Indian multinational Vulcan, which is mining coal in Moatize district, in the central Mozambican province of Tete, to revise its contracts with suppliers of goods and services.
According to figures in the Balance of the Economic and Social Plan and State Budget unveiled by the Ministry of Economy and Finance for the first half of 2023, the coal price fell from 374 USD per tonne in the first half of 2022 to an average price of 175 USD per tonne in the first half of 2023.
However, the total revenue from mega-projects grew considerably, totalling 16.5 billion meticais, compared to 11.8 billion meticais in the first half of 2022. The figure represents a growth of 40.4 per cent.
“Of the total tax revenue from mega-projects channelled to the state, the highlight goes to the contribution from the power production sector, which grew by 140% in 2021. Revenue from this sub-sector grew from 3.1 billion Meticais in the first half of 2022 to 7.4 billion Meticais in the second half of 2023”, reads the document.
After the power sector, it says, oil exploration stands out, as contribution grew from 3.3 billion Meticais in 2022 to just over 5 billion Meticais in the first half of 2023.
“The contribution from other mega-projects fell by 6%, from 619.9 million Meticais in the first half of 2022 to 580.9 million Meticais in 2023. The total revenue recorded by the state, in the first half of 2023, was 146.7 billion Meticais, compared to 138.8 billion Meticais in the first half of 2022. Of this total revenue, the weight of the contribution from mega-projects was 8.8 per cent in 2022 and 11.3 per cent in 2023”, says the report.