Decentralizing the Mineral Dividend
The Mozambican government announced that 862.8 million meticais (≈ USD 15 million) from the 2026 national budget will be allocated to provinces and local communities hosting mining and hydrocarbons projects. Funded through extractive revenues, this measure represents a clear step toward resource decentralization and aims to transform local economies through investments in infrastructure, education, and livelihoods in mining zones long excluded from direct benefits.
Bridging the Gap Between Extraction and Development
For years, Mozambique’s extractive wealth has expanded GDP without visibly improving life in producing regions. By channeling part of its fiscal gains to subnational governments, Maputo seeks to translate mineral revenue into tangible development outcomes, particularly in conflict-affected provinces like Cabo Delgado. Success will depend on transparent and accountable distribution systems that ensure funds reach communities rather than administrative bottlenecks.
Toward a Fairer Extractive Future
If effectively implemented, the 2026 allocation could set a precedent for inclusive mineral governance across Africa, linking extraction to shared prosperity. The challenge will be maintaining oversight and ensuring that local investments create measurable impact. For Mozambique, this initiative signals a broader shift—from extractive dependence to a rights-based, community-centered model of resource management