|Overview : |
Mozambique like other African countries is signatory of international agreements on good practices regarding
mineral, oil and gas exploration. These instruments should be taken into account in the definition of a mechanism
for compensation and benefit of communities that are hosts of the extractive industry projects.
The regulation on transfer to the local level of extractive industry in Mozambique began in 2007 with the publication
of the Act on Mineral Activities related to tributary legislation in the framework of mineral activity. (Act no 11/2007
of 27 June)
This Act doesn’t define the specific percentage that should be transferred to local entities. This percentage was only
established in the Act on the State Budget 2013 and up till now the same percentage has been applied in subsequent
annual Acts on the State Budget. One of the criteria to establishment the percentage was that it should have a level
that would permit redistribution of State income to other areas as well.
The Act of 2017 was revoked by the Acts 28/2014 and 27/2014 both from 23 September which established the
specific regime on tributary and tax benefits within the oil and gas sector. Paragraph 20 of the Act no 20/20114 (Act
on mining) and 48 of the Act no 21/2014 (Act on Oil and Gas) both from 18 of August establish that a percentage
from the income generated by extraction of minerals and oil and gas should be channelled to programs destined for
the Development of communities in the areas where these activities are located.