Several municipalities in Nampula province are facing a severe budget crisis, marked by significant delays in salary payments due to weak local revenue collection and continued reliance on transfers from the central government.
According to O País, the Municipality of Ilha de Moçambique accumulated up to six months of unpaid salaries, a situation only settled last December. With monthly wage expenses exceeding USD 39,000, the municipality has struggled to meet payroll using its own resources.
“We went six months without paying, but fortunately we managed to settle the arrears in December and close last year’s financial cycle,” said Mayor Momade Ali, noting that January’s salaries remain outstanding.
In Nacala, despite a roughly USD 780,000 increase in municipal revenue last year, salaries were also paid late at various times, largely due to the heavy wage bill relative to local revenue capacity. Angoche is currently facing five months of unpaid salaries, further straining municipal staff.
So far, the Municipality of Nampula is the only one in the province to remain free of salary debt over the past two years. However, Mayor Luís Giquira acknowledged that this stability largely depends on state transfers. “We are managing prudently, but we remain dependent on central government support to meet basic commitments,” he said.
Closing a recent mid-term municipal governance review meeting, the Secretary-General of Frelimo recognized the structural challenges affecting municipal financial sustainability but urged local leaders to find internal solutions to reverse the current fiscal fragility.
Source: Diário Económico
