Mozambique is crucial partner for gas production and energy transition
File - For illustration purposes only. [File photo: VOA]
The Mozambican government intends to allocate 862.8 million meticais (over 15 million dollars at the current exchange rate) to local communities and provinces hosting mining and natural gas exploration projects, according to the proposed Economic and Social Plan and State Budget for 2026, submitted to the country’s parliament, the Assembly of the Republic.
According to the document, 625.5 million meticais (72.5 per cent of the total) will go to the provinces and 237.3 million meticais (27.5 per cent) to local communities.
This amount is an increase of 140.4 million meticais compared to the projected 2025 budget, in which the government promised to transfer 722.4 million meticais (523.7 million meticais to the provinces and 198.7 million meticais to the communities).
The measure is covered by the law, which establishes the transfer of “10 per cent of revenues from taxes on mining and hydrocarbon production to the provinces, districts and local communities where the projects are implemented.”
“The northern province of Cabo Delgado province, which is home to natural gas and ruby exploration projects, will receive the largest share, of 223.5 million meticais. Next are the central provinces of Zambézia and Tete, which will receive 222.8 million meticais and 213.1 million meticais, respectively”, reads the document.
The southern province of Inhambane will receive 128.4 million meticais, while Nampula province will receive 71.4 million meticais, and Gaza province is expected to receive 2.2 million meticais.
Among the provinces that will receive less than one million meticais are Maputo province (229,160 meticais); the central province of Sofala (253,640 meticais); and the northern province of Niassa (586,240 meticais).
The document does not mention the central province of Manica.
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