Mining companies' contribution amounted to 1.3 billion meticais

The tax contribution of companies involved in the extraction of mineral resources in Tete province reached during the first quarter of this year about 1.4 million meticais.

This was announced by the Secretary of State in Tete province, Elisa Zacarias, during the opening session of the fourth session of dialogue between the deputies of the Assembly of the Republic and members of the provincial assemblies on decentralization and extractive industry.

In her speech, the head of the Executive Council of State Representation in Tete, noted that due to the effects of Covid-19, the turnover in the mineral resources sector, particularly coal, has dropped across the province's platform.

The provincial government executive assured, however, that despite the drop in business, no company has closed its activities.

The meeting held in the city of Tete was organized by the Institute for Multiparty Democracy in partnership with the Government of Finland, and its main objective was to strengthen the dialogue and interaction between the Members of the National Assembly and the Provincial Assemblies in the context of decentralized governance, focusing on sharing information about the supervision of the extractive industry sector.

"In a specific way, the workshop was intended to reflect on extractive sector revenue management, sovereign wealth fund and local content''- said Hermenegildo Mulhovo, Executive Director of the Institute for Multiparty Democracy.

He added that the Extractive Industry has the potential to promote the socio-economic development of resource-rich countries like Mozambique, and its success often depends on how this industry is structured, understood and managed.

It is from this sector that a large part of the raw material to feed other industries is extracted, generating employment and business opportunities for other companies along its value chain," said the IMD's executive director.

For the Mozambican state, this sector has the potential to increase revenues, with which it provides various public goods and services, substantially improving the lives of citizens.

Therefore, according to our source, the republican and provincial assemblies have an important role to play in ensuring that the citizens they represent do not see their rights being violated because of the exploitation of these resources.

He noted that although the provincial assemblies do not participate directly in the process of passing laws, since this is the role of the Assembly of the Republic, these two bodies follow the same purpose of enabling transparent, participatory governance aimed at promoting the welfare and quality of life of citizens.

He also mentioned that the actions of the Assembly of the Republic have the potential to create a real positive effect on the extractive industry, because through the laws and deliberations that are imperative and prompt intervention on the matter at hand, the opportunities for greater transparency and accountability in the processes of extraction of mineral resources are broadened.

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