President Daniel Chapo has urged municipalities to invest in sustainable, inclusive, and resilient development, stressing the need to adopt best practices in revenue collection with a strong focus on transparency.
Speaking on Thursday (14) in Maputo at the 14th National Meeting of Local Authorities, the Head of State said municipalities should share strategies for rehabilitating roads and other urban infrastructure, combating coastal and urban erosion, involving communities in solving local problems, and fighting corruption.
“We must engage in deep reflection on the local governance model we are building. We need ideas based on citizen participation, effective decentralization, and the promotion of local solutions to local problems. We urge municipal leaders to capitalize on best practices,” he said.
Chapo emphasized that with the country’s gradual municipalization, “decision-making power will be closer to local communities, allowing greater participation in identifying problems and finding solutions.” However, he noted that despite progress, challenges remain in “transparent management of public resources, sustainable urban planning, transportation, urban mobility, and equitable access to infrastructure and basic services.”
He also highlighted that the effects of post-election unrest are still being felt, especially in municipalities: “The mass destruction after the announcement of election results, and the looting of public and private property, reduced the capacity to deliver services. We must restore trust and hope in communities.”
Chapo concluded by saying: “Social peace, political stability, security, and harmony within communities are essential for our common fight for integrated and sustainable development. We want strong municipalities—financially sustainable, technologically innovative, with the potential to attract domestic and foreign investment, create jobs for youth and women, and improve quality of life.”
Last year, it was reported that municipal debt had risen to about 1.3 billion meticais (US$20.7 million) between 2019 and 2022, due to failure to meet repayment plans, according to the Ministry of Economy and Finance’s Fiscal Risk Report.
The report explained that failure to repay debts as planned threatens the municipalities’ financial sustainability. During this period, total debt grew by 10%, driven mainly by supplier debt, which jumped 159.8% and accounted for 62.5% of the total—identified as the main concern.
Despite a 53% increase in municipalities’ own revenues, the report indicated that their financial dependence on the central government remains high, at 44%. This growth was largely influenced by the performance of the Maputo municipality, which, on average, accounted for 40% of the own-source revenues of the 18 municipalities analyzed between 2019 and 2022.
In 2022, Parliament approved the creation of 12 new municipalities, bringing the total to 65. The decision came as the country approached the date for the 2023 municipal elections.
Source: Diário Económico
