File photo: LusaMegaprojects’ contribution to Mozambique’s state revenue fell by 21.9% by June, to 18,744 million meticais (€248.6 million), but still accounted for more than 10% of the total, according to official data.
“Megaprojects’ contribution amounted to 18,743.6 million meticais, equivalent to 10.2% of total revenue collected and representing a decrease of 21.9% compared with the same period of the previous financial year,” says a report by the Ministry of Finance on performance from January to June.
In the same period of 2025, the contribution of these projects, which operate under special regimes for the exploitation of natural resources, had reached 24,003.4 million meticais (€318.3 million), then accounting for 14% of state revenue.
Despite the overall decline, the oil exploration sector became the largest contributor among the megaprojects, generating revenue of 11,614.8 million meticais (€154 million), equivalent to 62% of the total collected in this category.
Compared with the first half of 2025, revenue associated with oil exploration grew by 120.9%, more than doubling the 5,258.5 million meticais (€69.7 million) recorded in the same period a year earlier.
“The oil exploration and energy production sectors made the largest contributions, accounting for 62.0% and 20.6% of total megaproject revenue, respectively,” the report notes.
Conversely, the energy production sector recorded the sharpest decline, with revenue falling by 75.3%, from 15,596.9 million meticais (€206.8 million) in the first half of 2025 to 3,855.9 million meticais (€51.1 million) this year, although it still accounted for 20.6% of the total collected from megaprojects.
Mineral resource exploration contributed 2,293.6 million meticais (€30.4 million), equivalent to 12.2% of the total, representing a year-on-year decrease of 3.4%.
Despite the decline recorded this year, major projects in the mining, energy and oil sectors continue to account for a significant share of Mozambique’s public finances, contributing more than one-tenth of all revenue collected by the state.
The trend recorded in the first half of the year follows a decline in megaproject revenue that was also observed over the whole of 2025. Data from the General State Account for the last financial year indicate that state revenue from large-scale projects in the mining, hydrocarbons and metallurgical sectors fell by almost 41%, to 11,680 million meticais (€157 million), compared with 19,652 million meticais (€264.5 million) recorded in 2024.
According to the General State Account, megaprojects paid 4,902.8 million meticais (€66 million) in Corporate Income Tax (IRPC) last year, 2,639.7 million meticais (€35.5 million) in Personal Income Tax (IRPS), and the remaining 4,137.8 million meticais (€55.7 million) through Value Added Tax (VAT), royalties and other taxes.
The Government stresses that these projects’ contribution to the economy is not limited to taxation, but also depends on the production links they establish with local suppliers and consumers, technology transfer, job creation, and their impact on the country’s savings and foreign reserves.
The General State Account also states that large-scale projects and business concessions together recorded an overall loss of 12,199 million meticais (€164.2 million) in 2025, an improvement of 65.6% compared with the losses of 35,468 million meticais (€477.4 million) recorded in 2024.
According to the document, the results continued to be affected by losses reported by major projects such as the Mozal aluminium smelter, the mining company Vulcan and Minas de Revuboè, whose losses more than offset the profits recorded by companies such as Sasol, Areias Pesadas de Moma, Midwest África and Ncondezi.
Source: Lusa