Sasol, communities and government enter a new cycle of Local Development Agreements (LDAs-II)

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Sasol, communities and government enter a new cycle of Local Development Agreements (LDAs-II)

7:20 CAT | 03 Jun 2025

Photo: Sasol em Moçambique

In a significant step towards strengthening its corporate social responsibility commitments, Sasol today formalised a new cycle of Local Development Agreements (LDAs-II) in Maluvane, Govuro District, Inhambane Province. The agreements, signed on the morning of Friday, 30 May 2025, will run from 2025 to 2030 and carry a total investment of USD 43 million to be channelled into social development programmes across the districts of Govuro, Inhassoro and Vilankulo.

The new cycle builds on the foundations laid between 2020 and 2025, when Sasol pioneered the first phase of the LDAs through a landmark agreement with 37 communities and the local governments of Govuro and Inhassoro. That initial phase saw a USD 20 million investment aligned with Mozambique’s national CSR Policy for the Extractive Industry, approved under Government Resolution No. 21/2014, of 16 May.

Structured as a tripartite model, the LDAs place communities at the heart of decision-making, empowering them to define and prioritise investments in sectors critical to local development. The expanded LDAs-II initiative reflects both a deepening of this commitment and a doubling of resources. Seventy communities will now benefit—nearly twice the number covered in the first phase.

The atmosphere at the signing ceremony was one of purpose and unity, drawing together community leaders, institutional partners, government representatives, and Sasol’s senior management, all pledging renewed dedication to the sustainable development of northern Inhambane.

Addressing attendees, Arnaldo Tingane, a local leader and host of the ceremony, conveyed the community’s appreciation: “Today marks a renewal of hope for our people. We have already seen the impact of Sasol’s work under the first phase of the LDAs. These agreements are the product of collective effort and genuine listening.”

Sasol Vice President Mozambique Country Management and Corporate Affairs, Ovídio Rodolfo, underscored the significance of the new cycle. “This is not merely a continuation. LDAs-II is a reaffirmation of Sasol’s long-term partnership with these communities—built on continuous dialogue and active participation. Over the past five years, we have invested in education, healthcare, water and sanitation, energy access, agriculture and income generation. With this new cycle, we more than double that investment and extend our reach to Vilankulo, in addition to Govuro and Inhassoro.”

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Francisco Pagula, Governor of Inhambane Province, commended the initiative as a model for inclusive development. “This is the kind of transparent, results-oriented collaboration between government, the private sector, and local communities that we must encourage. I call on all parties to ensure the effective implementation of these projects.”

Echoing this sentiment, Bendita Lopes, the Secretary of State for Inhambane, emphasised the ethical weight of the agreements. “These are not just financial commitments. They are social and moral obligations. The Government will remain closely engaged to ensure these projects deliver tangible improvements for our people.”

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The ceremony closed with a symbolic group photograph, capturing the shared resolve of all partners to deliver integrated, sustainable development in one of Mozambique’s most promising regions.

Source: Sasol Mozambique & Media Release