Context
Mozambique is not a traditional mining country. Since the end of the civil war in 1992, however, there has been a substantial increase in interest on the part of investors. Both the extraction and the export of mineral and energy resources have expanded considerably during this period. Thanks to recent discoveries of natural gas and large-scale investment in the coal sector, Mozambique now has the opportunity to increase its tax revenues dramatically and apply these to initiating local development processes. As investment in the extractive sector grows, the Mozambican Government is faced with the challenge of managing these processes in accordance with good governance practices. The main concern is to use the funds to promote broad-based growth and thereby reduce poverty. The government, particularly the Ministry of Natural Resources (Ministério dos Recursos Minerais, MIREM) as the responsible agency, does not have the planning and coordination capacities it needs to use the natural resources sector as an engine for self-reliant sustainable development.
Objective
The Mozambican Government has improved its planning and coordination capacity and is capable of using the country's natural resources to promote development.
Approach
How can the concerns of public, private and social actors be reconciled in order to improve Mozambique's natural resources governance? This issue forms the core of the advisory services. The project also supports the preparation of collective decisions on the management of the natural resources and provides advice on the use of revenues and expenditures. Particular emphasis is placed on strengthening the technical competences and strategic management structures and capacities of the Ministry of Natural Resources. The objective is to achieve efficient and transparent governance of the extractive sector in cooperation with other public bodies and non-governmental actors.
The project operates in four areas, both at national level and in several provinces:
1. At the level of the Ministry of Natural Resources: improving management capacity with respect to technical aspects and in the handling of policy and strategy
2. At the level of the Ministry of Natural Resources and at the local level: improving the social and economic impacts of mining
3. In the framework of the Extractive Industries Transparency Initiative (EITI): increasing transparency and compliance with accountability obligations
4. At the level of the Ministry of Natural Resources: strengthening the government in the public-private dialogue with mining companies
Results achieved so far
Thanks in part to the work of an earlier project, Mozambique has been in compliance with the EITI standards for payment transparency and public accountability since October 2012. Its transparency in the extractive sector and its natural resources governance have improved. Civil society representatives across the country have been trained to accompany the EITI process as critical observers so as to increase the role of society alongside the state in governance of the sector.