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South African Petro-Chemical Company Sasol Sued for Invading and Destroying Properties of Small Producers in Mozambique

Stélvio Martins by Stélvio Martins
July 24, 2025
in Business
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By Stélvio Martins

Maputo (MOZTIMES) – About 300 smallholder farmers in the village of Mungonze, in the southern Mozambican district of Vilankulo, are accusing the South African petro-chemical giant, Sasol, of invading and destroying their farms during gas research and prospection work.

One of the victims took the case to court and was demanding compensation of about a million meticais (equivalent to 15,900 US dollars). Without admitting guilt, Sasol has offered to pay compensation to close the case. The victim rejected this since he regarded the compensation offer as derisory.

Mário Macarral, one of those whose interests were damaged by Sasol, says that, without prior notice, the company sent a team, with heavy machinery, to dig in part of the land where he raises cattle. The case dates back to 31 October 2021, when the company, which exploits natural gas and light oil in the northern part of Inhambane province, was undertaking digging work prior to seismic research.

Macarral resorted to the Police and later to the Inhambane Provincial Law Court to demand that Sasol cease, but he says that the South African company ignored the order issued by the court, which slapped an embargo on the work, but continued with the digging.

As the result of the invasion of his property by Sasol, this local small producer says that he lost 22 head of cattle and 14 goats, which were stolen after the opening of access routes which facilitated the entry of thieves into his property in addition to land for pasture and damage to his residence.

Macarral says that Sasol refused to appear at two consecutive hearings convened by the Inhambane Provincial Law Court, one on 21 December 2021 and the other on 6 January 2022 following the complaint he had submitted. Finally, Sasol appeared at the third hearing, on 11 January 2022. Had it not done so, the Sasol managers could have been accused of the crime of disobeying a court order.

“Once in court, the representative of Sasol, the lawyer Rafael Neves Baguine agreed to compensate us for the damage caused. But Sasol only offered 120,000 meticais (about 1,900 dollars)” said Macarral. He alleged that this sum “is far below the real value of the losses suffered, both material and emotional”. And so he refused to accept.

Sasol has confirmed that it compensates local communities for eventual losses of crops or of fruit trees which occur during seismic research. In the case involving Mário Macarral, Mateus Mosse, Sasol’s Director of Corporate Relations, said he could not give details because it is a case before the courts.

“Comments which we, or he, or his lawyers, may make, have the potential of prejudicing the case. That’s why I cannot say more than this, said Mosse in answer to questions sent by whatsapp.

Risk of conflicts with communities

There is a serious risk of violent conflicts between Sasol and members of the communities, above all due to the failure to solve disputes peacefully. When they lose their farmland, the local communities are losing an important means of livelhood to produce food for their families. To make matters worse, the gas industry does not create enough jobs for the members of the local communities, due to the demand for highly qualified labour to work in the oil and gas sector.

Four years ago, Sasol was forced to abandon petroleum prospection projects in the tourist archipelago of Bazaruto due to opposition from the local communities and the tourism sector companies. 

The usurpation of land from communities by large companies in the extractive sector in Mozambique occurs frequently and has led to violent conflicts between local communities and extractive sector companies. Coal mining in Tete province and ruby mining in Cabo Delgado are some of the best known violent disputes between communities and multinational mining companies.

In the case of Cabo Delgado, the Montepuez Ruby Mining company, owned 75% by the British group Gemfield, found itself obliged to pay compensation of about 7.8 million US dollars to close a court case in London brought against it by 112 plaintiffs who were members of the local communities. They alleged mistreatment by the company security guards and by police agents in the service of the company. (SM)

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