The Government reaffirmed on Friday (23rd) its intention to renegotiate contracts with the ongoing megaprojects in the country, justifying that “the context in which Mozal and other industries were established has changed.” Therefore, it is considered necessary to “redo the deals,” according to the Minister of State Administration and Public Service, Inocêncio Impissa, cited by Lusa.
During the usual weekly press briefing in Maputo, Impissa explained that the renegotiations aim to ensure greater benefits for Mozambicans, emphasizing that “the Government must continue to engage,” since the current economic and social scenario is different from that at the time the contracts were signed.
When asked about Mozal’s tax contributions, the minister assured that “no mistakes have been made so far concerning the Government or Mozal,” but argued that “the context needs to be reanalyzed” to ensure the preservation of national interests. Inocêncio Impissa revealed that Mozal has been paying the State about one billion meticais (15.5 million dollars) annually in taxes since 2020, stressing that the contract with the company was signed based on the conditions at the time, with the purpose of attracting major investments to the country.
“The context in which Mozal was established was all about proving a reliable environment for national and foreign investment,” he stated, adding that the company functioned as a “publicity instrument” to attract other major ventures to Mozambique.
However, the minister acknowledged current challenges, noting that “the President of the Republic, Daniel Chapo, and the new Government have been addressing the need to renegotiate and rethink the various existing deals and ventures,” taking into account the new national context.
The renegotiation of contracts with megaprojects is included in the Government’s Five-Year Program (PQG) 2025–29, recently approved by Parliament. This program includes the review of concession contracts and natural resource exploitation agreements within the framework of the Macroeconomic Stability Program. Among other goals, the PQG proposes to “promote equity in the application of revenues from natural resource exploitation” and to “combat tax evasion.” In March, the President of the Republic explained that “Mozambique is no longer the same as it was 20 years ago. Times change, and so do the challenges, hence the need to renegotiate megaprojects based on the country’s current stage and conditions.”
Source: Diário Económico
