Mozambique: CTA board holds meeting with outgoing leaders of departments
Mozambique: 2021 losses put mega-projects in the red – ‘O País’
2:52 CAT | 10 Jun 2022
in file CoM
According to the Ministry of Economy and Finance, ‘mega-projects’ in Mozambique recorded a global loss of 56,623,24 million meticais in 2021, which represents a reduction of 55.5% compared to the previous economic year.
“The negative results were influenced by the projects of MidWest Africa, Minas de Revúboè and Ncondezi, in the amount of 87,181.42 million meticais (US$1,365.84 million), with the emphasis on MidWest Africa, which posted a loss of 87,081,77 million meticais (US$1,364.28 million),” the General State Account explains.
‘Mega-projects’ did however channel 9,093.93 million meticais into the state coffers – 3.4% of total revenue for 2021, and an increase of 53.0% over contributions for year 2020.
“Of this amount, 1687.81 million meticais result from the payment of IRPS (Personal Income Tax); 4721.15 million meticais from the IRPC (Corporate Income Tax) ; 562.54 million meticais from VAT; 2122.4 million meticais from other taxes,” the Ministry of Economy and Finance details.
The report also reveals that the mega-projects also reduced their turnover with small and medium enterprises (SMEs) in Mozambique by 75.6%, registering just 7.8 billion meticais in business compared to 32.2 billion meticais in 2020.
Among the factors behind this reduction is the suspension of TotalEnergies projects in Cabo Delgado as a result of terrorist attacks in Palma, as well as the exit of Vale Moçambique from the coal business in Moatize.
The General State Account 2021 also mentions that mega-projects contracted only 355 SMEs for the supply of goods and services in 2021, against 446 registered in 2020, a reduction of 20.4%.
In terms of job creation in 2021, large-scale projects or mega-projects and the business concessions employed 8,565 workers in 2021, against 6,444 in 2020, an increase of 32.9% over the previous year, Of these, 7,837 are nationals and 728 foreigners.
Vale Moçambique stands out for employing 4,625, making up 49.8% of the total number, along with the Moma and Mozal heavy sands operations with 1543 and 1114, respectively.
The volume of business carried out in 2021 is lower than in 2019, at 23.4 billion meticais. The highest turnover of the last five years (from 2017 to 2021) in fact came in 2018, having settled at 33.1 billion meticais.
It should be noted that SMEs have often claimed the lack of business opportunities with mega-projects, due to the absence of a Local Content Law, as well as the lack of tax incentives and high interest rates.
The public-private partnership (PPP) projects being operated in the country comprise a total of 15 projects, including the railway and port area, which stands out with 33%, and the energy and roads areas.
According to the document, Public-Private Partnerships (PPP) presented a positive net result of 18,448.21 million meticais, Cahora Bassa hydroelectric standing out with a contribution of just over 10 billion meticais, 54 .9% of the total.
“The projects of Ports of Maputo and Beira, Zambezi Roads, EN4, Mozambique Road Network, Terminal Management, Ressano Garcia Gigawatt Power Station, Ressano Garcia Thermal Power Plant, Mocuba Solar Power Plant, Mozambique Community Network, SA, Corridor Logístico Integrados de Nacala and Security Mozambique, Lda registered positive results in the period,” the government document concludes.
By Edmilson Lambo
Source: O País
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