Mozambique's Performance on the Resource Governance Index
Mozambique received a "failing" score of 37, ranking 46th out of 58 countries, despite a relatively strong showing on the Institutional & Legal Setting component.
(out of 58)
(out of 100)
|32||Institutional & Legal Setting||58|
|46||Safeguards & Quality Controls||37|
Institutional & Legal Setting (Rank: 32nd/58, Score: 58/100) learn more
Mozambique's "partial" score of 58 is the product of an incomplete regulatory framework but meaningful disclosure policies.
The Mineral Resources Ministry's National Petroleum Institute (NPI) grants hydrocarbon licenses, which are obtained through public tender, simultaneous negotiation or direct negotiation. The General Tax Directorate of the Finance Ministry collects royalties, taxes, and profit shares from companies. The NPI regulates the hydrocarbon sector and collects payments from oil companies for social and capacity-building funds. These revenues bypass the treasury, and there is no public information about their management.
Mozambique requires companies to provide an environmental impact assessment before extraction can begin, but the government often lacks the capacity to make an independent evaluation of environmental risks. The country achieved compliance under the Extractive Industries Transparency Initiative (EITI) in 2012. It has yet to adopt a law requiring disclosure of extractive sector information.
Reporting Practices (Rank: 51st/58, Score: 26/100) learn more
Mozambique received a "failing" score of 26, reflecting a lack of information on the licensing process, contract terms, and industry data.
The Finance Ministry publishes only aggregated figures for combined revenues from energy, mining, and hydrocarbons. The Mineral Resources Ministry publishes very basic data provided by companies, and the NPI lists information on exploration activities, but little else. The most comprehensive information is published in EITI reports covering the 2008 and 2009 fiscal years. They contain the names of companies operating in Mozambique, the cost of social investments, royalties, taxes, dividends, and license fees. Some environmental impact assessments are made available by resource companies.
Safeguards & Quality Controls (Rank: 46th/58, Score: 37/100) learn more
Insufficient government monitoring and poor audit mechanisms led to a "failing" score of 37.
There are no legal provisions limiting the NPI's discretion in licensing decisions, though the Public Tender Law does include mechanisms for appeal. The legislative branch does not review contracts and provides little oversight of the extractive industries. All public entities are audited and the reports are presented to the legislature, but lawmakers do not always follow recommendations from national auditors and not all audit reports are available to the public. Government officials involved in the sector are not required to disclose potential conflicts of interest.
Enabling Environment (Rank: 29th/58, Score: 37/100) learn more
Mozambique releases negligible information about the national budget process and faces challenges with the quality of the rule of law.
State-Owned Companies (Rank: 36th/45, Score: 28/100) learn more
State-owned companies are active in all extractive sectors, though private companies own part or all of most large projects. Empresa Nacional de Hidrocarbonetos is entirely owned by the state. Its audited reports provide data on petroleum operations and subsidiaries, including production by block, but give only limited information on revenue streams such as special taxes and dividends.
Subnational Transfers learn more
While the Petroleum Law requires that a portion of revenues go to communities where extraction takes place, no such payments have been made. The law does not specify the percentage of petroleum revenues to be transferred nor how the money should be managed.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||5.4||7.4||12.8|
|GDP per capita, PPP (constant 2005 international $)||501||670||861|
|Oil and gas revenues (% total government revenue)||..||1|
|Extractive exports (% total exports)||38||74||67|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank. Oil and gas revenues 2011 data from 2009.|