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Home Oil and Gas

Mozambique’s Extractive Sector Law Reforms Met with Scepticism by Experts

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July 31, 2025
in Oil and Gas
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Negociação de Novos Contratos de Mega Projectos Deve Ser Mais Transparente, Afirma Especialista

Rui Mate, Economist and Researcher at the Centre for Public Integrity.

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By Noémia Mendes

Maputo (MOZTIMES) – Experts have criticised the government’s proposed revisions to the legal frameworks governing the mining, hydrocarbons and energy sectors. The proposals were presented on Monday (28), in Maputo, by the Ministry of Mineral Resources and Energy (MIREME).

The government plans to revise the Mining Law, the Petroleum Law, and their respective regulations and introduce a new Local Content Law for the extractive sector. In the energy field, it intends to regulate concessions for electricity generation projects. The reforms also include the creation of a new state-owned entity to represent Mozambique in solid mineral operations, similar to the role played by the National Hydrocarbons Company (ENH) and Electricidade de Moçambique (EDM).

Rui Mate, a researcher at the Centre for Public Integrity (CIP) focusing on the extractive industry, criticised the process, saying the reforms were drafted hastily and without sufficient public consultation. “Rushing the process could lead Mozambique to adopt laws that, rather than benefiting the country, become obstacles to investment and industrialisation,” Mate told MOZTIMES.

He also criticised the proposal to establish a new state-owned company for solid minerals, recalling the failure of the former Mozambican Mining Company. Mate further warned that the proposed ban on the export of raw minerals, included in the revised Mining Law, is unrealistic given the country’s current lack of processing capacity.

Mozambique is rich in mineral and hydrocarbon resources, including coal, graphite and natural gas, which make up the country’s main exports. However, these resources have contributed little to national development, and Mozambique remains among the poorest countries in the world.

Fátima Mimbire, a researcher in the extractive sector, questioned the need for a new local content law, arguing that existing regulations already prioritise national labour. “The proposal introduces unnecessary bureaucracy, increases the burden on companies, and overlooks the sector’s structural challenges,” said Mimbire. “The focus should be on strengthening existing institutions, investing in industrialisation, agricultural policy, and reforming the customs tariff.”

The new legislative package covering the mining, hydrocarbons and energy sectors will be submitted to Parliament for debate and approval before coming into force, likely sometime next year. (NM)

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