Fiscal Policy Notes on Mining in Mozambique 2023

Employing a traffic light evaluation system, the study analyzes various aspects, including fiscal regimes, revenue maximization, corruption, tax harmonization, investment impact, customs, duties, tariffs, fiscal administration, and illicit financial flows. The data, sourced until August 2022, reveals challenges in translating abundant mineral resources into socio-economic development, contributing to high poverty rates and subpar welfare indicators. The study recommends establishing a clear Minerals Policy for transparency, adjusting tax rates, strengthening monitoring mechanisms, enhancing audit effectiveness, and promoting technology adoption. Emphasizing the need for continuous review, the assessment urges Mozambique to enact a Beneficial Ownership law to enhance transparency and accountability in the mining sector.