Mozambique has allocated over €1.1 million from mining and oil revenues for community development programs in 2023. Communities, particularly Nyamanhumbir, Benga, and Pande, received substantial funds for local projects. The government mandates that 10% of tax revenues from these sectors support social initiatives, prioritizing education, health, and infrastructure development in impacted areas.
In 2023, the government of Mozambique allocated over €1.1 million (77.1 million meticais) towards community development programs derived from mining and oil revenues. This funding supports local projects that align with the social responsibility mandates of mining and oil companies, as detailed in the Ministry of Economy and Finance’s Citizen Account 2023 report.
The community of Nyamanhumbir, located in the Montepuez district, received the largest allocation, amounting to €322,500 (21,405,750 meticais) to support locally initiated projects associated with ruby mining. Additionally, the Benga community, situated in Tete province, benefited from €230,000 (15,260,670 meticais) while the Pande community in Inhambane province received €110,500 (7,333,680 meticais) for natural gas extraction initiatives.
Mozambique has recently implemented a measure directing 10% of tax revenues from mining and oil activities toward structural projects and community support. This initiative stems from a decree highlighting the critical need to allocate and manage revenue percentages tailored for the development of areas impacted by resource extraction.
The decree stipulates that 7.25% of the collected Mining Production Tax and Oil Production Tax shall fund province and district-level projects, while 2.75% targets local communities. The government emphasizes the importance of these “structuring projects” in stimulating regional productivity, prioritizing projects in education, health, and infrastructure development.
Eligible projects include building classrooms and equipment for educational facilities, community health enrichment through porches, agricultural improvements via irrigation, and aquaculture. Furthermore, investments in fishing infrastructures, forestry development, transportation enhancements such as roads and community boats, and water and sanitation initiatives are prioritized to bolster communal interests.
In conclusion, Mozambique is making significant strides in utilizing mining and oil revenue for community development, ensuring that local programs receive necessary funding. The systematic allocation of tax revenues is designed to foster sustainable development in the regions impacted by resource extraction, with projects in education, health, and infrastructure receiving paramount importance. This initiative reflects the government’s commitment to enhancing the welfare of local communities through responsible resource management.
Original Source: clubofmozambique.com
