Mozambique: Government reaffirms intention to renegotiate megaprojects

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Mozambique: Government reaffirms intention to renegotiate megaprojects

4:30 CAT | 24 May 2025

Photo: Notícias

Mozambique’s government on Friday reaffirmed its intention to renegotiate contracts with megaprojects underway in the country, for the benefit of Mozambicans, warning that the circumstances in which they were previously discussed have changed.

“The context in which Mozal and other infrastructure or industries were established a few years ago in Mozambique has changed, so there is naturally a need to continue talks, the government has to continue to interact (…). So, we need to resume the debate, the conversation,” said government spokesman Inocêncio Impissa during his usual weekly statements to journalists.

The official was questioned in Maputo about Mozal’s contributions to the state. Mozal operates an aluminium smelter in the province of Maputo, southern Mozambique. He said that there were no “errors or flaws” in these contributions and explained that they were within the context in which the contract was negotiated.

“No mistakes have been made so far concerning the government or Mozal. However, the context needs to be re-examined so that the conversation can continue, taking into account the national interest we want to preserve,” explained Impissa.

The minister said that Mozal has been paying the Mozambican state taxes of one billion meticais (€13.7 million) annually since 2020.

“The context in which Mozal was established had everything to do with the need to create and prove a reliable environment for large domestic and foreign investment to allow other large companies to enter. Mozal’s role has something to do with this idea of being a publicity tool for all other large enterprises that could establish themselves in Mozambique,” he explained.

“However, we can assume that there are challenges and the president of Mozambique and the new government have been addressing the need to renegotiate, to rethink the various opportunities, the various businesses and ventures that exist, taking into account the context,” added Impissa.

The Mozambican government will proceed with the renegotiation of contracts involving megaprojects that exploit the country’s mineral resources, as provided for in the Five-Year Government Programme (PQG) 2025-2029, approved by parliament.

The document states that “Renegotiating concession and natural resource exploitation contracts” is one of the objectives of the Macroeconomic Stability Programme, which is part of the PQG.

“Promoting equity in the application of revenues from the exploitation of natural resources, with a focus on minerals and hydrocarbons” and “increasing efficiency in revenue collection and management and combating tax evasion” are other measures included in the programme.

Mozambican President Daniel Chapo has previously stated that he will renegotiate contracts for megaprojects that exploit the country’s resources, arguing that 20 years later, Mozambique is no longer the same and does not think in the same way.

“Mozambique is no longer the same as it was 20 years ago. We are not the same number of people, we do not think the same way, we do not have the same goals, or our interests. Times change, desires change, and challenges also change,” said the head of state in statements to journalists on 29 March in Nampula.

Mozal is an international consortium that has been operating an aluminium smelter in the province of Maputo, southern Mozambique, since 2000. The smelter produces aluminium mainly for export.

Opened in 2000, Mozal is 47% owned by BHP Billiton, with the remaining shares held by Mitsubishi (25%), IDC (24%), and Mozambique’s government (4%). It is considered the first major private investment in the country since independence (1975).

Source: Lusa