– Budget cut poses a serious challenge to community development, says expert
By Noémia Mendes
Maputo (MOZTIMES) - The Government will reduce the amount allocated to communities hosting natural resource extraction projects in 2025 by approximately 436.6 million meticais, compared to the budgeted amount for 2024, which stood at 1.159 billion meticais.
According to the 2025 draft of the Economic and Social Plan and State Budget (PESOE), the estimated amount to be channelled to the communities this year is around 722.4 million meticais, representing a reduction of approximately 38% from the previous year.
PESOE 2025 was approved by the Council of Ministers on 29 April and is due to be reviewed by the National Assembly between 7 and 8 May this year.
According to the document, for 2025, the Government expects to collect a total of 7.224 billion meticais in taxes from mining and petroleum production—5.8419 billion meticais from mining and 1.3822 billion meticais from petroleum. The 10% allocation to provinces where natural resources are extracted is drawn from this total.
Of the 722.4 million meticais, 523.7 million meticais correspond to a 7.25% share to be channelled to the provinces where the resources are extracted, while the remaining 198.7 million meticais, equivalent to 2.75%, will go directly to the host communities of extractive projects.
The proposal also includes allocating 61.5 million meticais to communities for the protection, conservation, and sustainable use of forest and wildlife resources.
PESOE also anticipates a 21.6% drop in revenues from forest and wildlife exploitation compared to 2024. “The decline is due to the low international demand for timber products, coupled with a decrease in the number of tourists visiting conservation areas,” the document reads.
Serious challenge to community development
Rui Mate, a researcher and expert in the extractive industry at the Centre for Public Integrity (CIP), believes that the reduction in budget allocations to communities presents an obstacle to development, particularly in a context where previous funds rarely reached local populations in any meaningful way.
“We’re in a context where even previous budgets were problematic because communities didn’t actually see what happened with this money,” said the expert in an interview with MOZTIMES.
Mate explained that the issue lies not only in the transfer of funds but also in how they are managed and applied. “Under the current model, the Government makes revenue forecasts and transfers funds gradually, as company payments are made. This methodology has led to uncertainty and frustration, as the projected figures are not always realised, hindering the implementation of previously planned community projects,” he noted.
The expert also criticised the effectiveness of the 2.75% allocation as a compensation mechanism, arguing that it is often insufficient to bring about structural transformation in the communities.
“Analyses show that, in many cases, the 2.75% allocation is not enough to bring about structural change, such as access to clean water, education, or basic infrastructure,” he said, adding that poor fund management, combined with government interference, further undermines the intended outcomes for the country’s development. (NM)
