In 2023, Mozambique allocated €1.1 million from mining and oil revenues to community programs, focusing on education, health, and local infrastructure, with notable allocations to specific communities like Nyamanhumbir, Benga, and Pande. A decree determines the distribution of these funds, with 10% of tax revenues designated for local development initiatives.
In 2023, the Mozambican government allocated €1.1 million (over 77.1 million meticais) to community development programs funded by revenues from mining and oil extraction. This funding is in line with the social responsibility of mining and oil companies, as detailed in the Citizen Account 2023 report by the Ministry of Economy and Finance.
The community of Nyamanhumbir received the largest allocation, amounting to 21,405,750 meticais (€322,500) for local projects related to ruby exploitation in Cabo Delgado province. Additionally, 15,260,670 meticais (€230,000) were designated for the community of Benga, a coal mining area in Tete, while 7,333,680 meticais (€110,500) were allocated for the Pande community, which is involved in natural gas extraction in Inhambane province.
In a concerted effort to support local communities, Mozambique has mandated that 10% of tax revenues generated from mining and oil activities be directed toward structural initiatives in these provinces. This decision is underpinned by a decree aiming to outline the criteria for managing these revenues for local development, highlighting the necessity for transparency and effective management of funds.
According to the decree, 7.25% of funds from the Mining and Oil Production Taxes will address structural projects, while 2.75% is reserved for supporting local communities. Eligible projects include those that enhance the local productive sector, encompassing education, health, agriculture, and infrastructure development.
Funding will support various community-related initiatives such as constructing classrooms, community health facilities, and irrigation projects. Additionally, other potential areas for development include fisheries, forestry, and the development of transport infrastructure such as roads and bridges, alongside community water and sanitation projects.
In summary, the Mozambican government is utilizing a significant portion of revenues from mining and oil operations to enhance local community development. The initiatives outlined in the Citizen Account 2023 reflect a clear commitment to social responsibility by allocating funds to vital areas such as education, health, and infrastructure, ultimately fostering sustainable community growth and improving living conditions in resource-rich regions.
Original Source: clubofmozambique.com
