The South African oil company Sasol, responsible for the exploration of the Pande and Temane natural gas fields in Inhambane province, has reaffirmed its position as one of the top three taxpayers in Mozambique, contributing approximately 6.2 billion meticais ($92 million) in taxes to the State in 2024.
According to the Mozambican Information Agency (AIM), over the past five years, the company’s cumulative tax contribution has reached 25 billion meticais ($391 million), making Sasol a strategic partner for national economic development.
In 2024, its subsidiary, Sasol Petroleum Temane (SPT), was recognized as the third-largest corporate income tax (IRPC) contributor. In the previous year, 2023, the company had been distinguished as the largest IRPC contributor and for the highest overall contribution in the fiscal year. According to Sasol Mozambique’s CEO, Ovídio Rodolfo, fulfilling tax obligations is a non-negotiable commitment for the company.
“We rigorously comply with all taxes due, from IRPC at a rate of 32%, to VAT at 16%, royalties at 5%, and personal income tax (IRPS). This commitment has already earned us several distinctions from the Tax Authority,” he stated.
Mozambique’s fiscal prospects are expected to grow in the coming years with the production start of the Production Sharing Agreement (PSA) Project, scheduled for the end of 2025. This integrated asset involves the exploration of natural gas, light oil, and liquefied petroleum gas (LPG), commonly known as cooking gas. With a total investment of 48.7 billion meticais ($760 million), the project aims to reshape the national energy matrix, as 60% to 65% of the gas produced will be consumed domestically, compared to 20% to 25% under the current Petroleum Production Agreement (PPA) license in effect since 2004.
Currently, Sasol supplies five gas-fired power plants in Mozambique, with a combined production of 450 megawatts, contributing to the security and stability of the national energy system.
The company also stands out for the significant increase in local procurement, which rose from 1.05 billion meticais ($16.5 million) in 2019 to 2.3 billion meticais ($37 million) in 2024. Purchases from suppliers based in Inhambane quintupled over the same period, reaching 837 million meticais ($13.2 million).
“We have been investing in Mozambique for over 20 years, even in unstable contexts, because we believe in the country’s potential. Today, we are creating a domestic market for natural gas and preparing opportunities for young people and local companies in the oil & gas sector,” emphasized Rodolfo.
Beyond the economic aspect, Sasol maintains strong social engagement, with local involvement agreements, income-generating programs, investments in education, and direct community support. These initiatives, according to the CEO, have “turned the page” in the company’s relationship with communities affected by its operations.
With ambitions to expand downstream activities and strengthen its role in the energy transition, Sasol reaffirms itself as a key player not only in the extractive sector but also in building a more inclusive and sustainable energy future for Mozambique.
Source: Diário Económico
