"Mozambique is one of the countries that least channels revenues from the extractive industry to communities," - UN

“Moçambique é um dos países que menos canaliza receitas da indústria extractiva às comunidades”, – ONU

Mozambique is one of the countries that least returns the money from the extraction of mineral resources to the host communities of the projects, according to data from the United Nations Research Institute for Social Development, shared by Sasol.

According to the comparative analysis carried out by the United Nations (UN) body, the Mozambican state concentrates 90% of revenues from the extractive industry in the central level bodies, allocating only 7.25% to the province of origin and 2.75% to the host communities.

Compared to other countries, Mozambique's policy of decentralizing revenues from the extractive industry is below that implemented in Brazil, Peru, Bolivia, Indonesia and Nigeria. For example, in Brazil, the state returns 66% of revenues to the areas where the resources originate, while in Peru 55% of revenues are returned. Bolivia returns 41%, surpassing Indonesia which returns 15% and Nigeria which returns 13% of the revenues generated by oil exploitation.

In the comparison shared by the South African multinational, quoted by the portal ProfileMozambique's policy of returning money from the extractive industry is on a par with that of Colombia (10%) and only surpasses Ghana (7%), Papua New Guinea (5%) and Ecuador (2%).

"As well as being one of the countries that gives the least amount of money back to the host communities, Mozambique is one of the countries that calculates the amount to be given back based only on revenue from the Production Tax, ignoring other taxes levied in this industry, such as VAT, IRPC and IRPS," reads the same publication.

The analysis also points out that the Mozambican government does not include revenue generated from taxes paid in kind by Sasol (through natural gas), and that the country is one of those that charges the lowest percentage of production tax (6%). Colombia, for example, charges between 20% and 25%, while Ghana charges 10%.

In 2022, the government transferred a total of 44.7 million meticais to 22 communities affected by the extractive industry across the country, compared to 73.9 million meticais transferred in 2021.

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