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Mozambique has considerable natural resources, but effective exploitation of its mineral and gas sectors did not begin until the civil war ended in 1992. The extractive industries still operate below their potential; the government received less than $40 million in revenues from petroleum and mining in 2009. The entry of large multinational companies has boosted the sector and gas exports reached 107.4 billion cubic feet in 2010, when extractive products made up 74 percent of exports. Newly discovered gas reserves are estimated at 4.5 trillion cubic feet. Since gas contributes significantly more to the national economy than mining, the RGI has focused on hydrocarbons.

Mozambique's Performance on the Resource Governance Index

Mozambique received a "failing" score of 37, ranking 46th out of 58 countries, despite a relatively strong showing on the Institutional & Legal Setting component.

(out of 58)
(out of 100)
46 Composite Score 37
32 Institutional & Legal Setting 58
Freedom of information law 0
Comprehensive sector legislation 67
EITI participation 100
Independent licensing process 83
Environmental and social impact assessments required 50
Clarity in revenue collection 67
Comprehensive public sector balance 100
SOC financial reports required 0
Fund rules defined in law N/A
Subnational transfer rules defined in law N/A
51 Reporting Practices 26
Licensing process 33
Contracts 0
Environmental and social impact assessments 50
Exploration data 17
Production volumes 0
Production value 33
Primary sources of revenue 17
Secondary sources of revenue 33
Subsidies 33
Operating company names 67
Comprehensive SOC reports 17
SOC production data 14
SOC revenue data 25
SOC quasi fiscal activities 0
SOC board of directors 50
Fund rules N/A
Comprehensive fund reports N/A
Subnational transfer rules N/A
Comprehensive subnational transfer reports N/A
Subnational reporting of transfers N/A
46 Safeguards & Quality Controls 37
Checks on licensing process 33
Checks on budgetary process 44
Quality of government reports 40
Government disclosure of conflicts of interest 0
Quality of SOC reports 33
SOC reports audited 44
SOC use of international accounting standards 100
SOC disclosure of conflicts of interest 0
Quality of fund reports N/A
Fund reports audited N/A
Government follows fund rules N/A
Checks on fund spending N/A
Fund disclosure of conflicts of interest N/A
Quality of subnational transfer reports N/A
Government follows subnational transfer rules N/A
29 Enabling Environment 37
Corruption (TI Corruption Perceptions Index & WGI control of corruption) 39
Open Budget (IBP Index) 29
Accountability & democracy (EIU Democracy Index & WGI voice and accountability) 43
Government effectiveness (WGI) 39
Rule of law (WGI) 37
Satisfactory Weak
Partial Failing
To explore all data and compare
scores, use the RGI Data Tool.

Institutional & Legal Setting (Rank: 32nd/58, Score: 58/100) learn more

Mozambique's "partial" score of 58 is the product of an incomplete regulatory framework but meaningful disclosure policies.

The Mineral Resources Ministry's National Petroleum Institute (NPI) grants hydrocarbon licenses, which are obtained through public tender, simultaneous negotiation or direct negotiation. The General Tax Directorate of the Finance Ministry collects royalties, taxes, and profit shares from companies. The NPI regulates the hydrocarbon sector and collects payments from oil companies for social and capacity-building funds. These revenues bypass the treasury, and there is no public information about their management.

Mozambique requires companies to provide an environmental impact assessment before extraction can begin, but the government often lacks the capacity to make an independent evaluation of environmental risks. The country achieved compliance under the Extractive Industries Transparency Initiative (EITI) in 2012. It has yet to adopt a law requiring disclosure of extractive sector information.

Reporting Practices (Rank: 51st/58, Score: 26/100) learn more

Mozambique received a "failing" score of 26, reflecting a lack of information on the licensing process, contract terms, and industry data.

The Finance Ministry publishes only aggregated figures for combined revenues from energy, mining, and hydrocarbons. The Mineral Resources Ministry publishes very basic data provided by companies, and the NPI lists information on exploration activities, but little else. The most comprehensive information is published in EITI reports covering the 2008 and 2009 fiscal years. They contain the names of companies operating in Mozambique, the cost of social investments, royalties, taxes, dividends, and license fees. Some environmental impact assessments are made available by resource companies.

Safeguards & Quality Controls (Rank: 46th/58, Score: 37/100) learn more

Insufficient government monitoring and poor audit mechanisms led to a "failing" score of 37.

There are no legal provisions limiting the NPI's discretion in licensing decisions, though the Public Tender Law does include mechanisms for appeal. The legislative branch does not review contracts and provides little oversight of the extractive industries. All public entities are audited and the reports are presented to the legislature, but lawmakers do not always follow recommendations from national auditors and not all audit reports are available to the public. Government officials involved in the sector are not required to disclose potential conflicts of interest.

Enabling Environment (Rank: 29th/58, Score: 37/100) learn more

Mozambique releases negligible information about the national budget process and faces challenges with the quality of the rule of law.

State-Owned Companies (Rank: 36th/45, Score: 28/100) learn more

State-owned companies are active in all extractive sectors, though private companies own part or all of most large projects. Empresa Nacional de Hidrocarbonetos is entirely owned by the state. Its audited reports provide data on petroleum operations and subsidiaries, including production by block, but give only limited information on revenue streams such as special taxes and dividends.

Subnational Transfers learn more

While the Petroleum Law requires that a portion of revenues go to communities where extraction takes place, no such payments have been made. The law does not specify the percentage of petroleum revenues to be transferred nor how the money should be managed.

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