Mozambique’s Economy and Finance Ministry has for the first time published the minimum reference prices for mineral exports.
The Economy and Finance Minister, Max Tonela, said recently that Mozambique loses around $250 million annually in the exports of gold, which do not pay the fair price, according to the minister. As such, the minimum reference price is a response to what the ministry sees as a poorly taxed industry.
Consequently, miners will be obliged by law to sell at prices practiced in international markets.
Comment
The measure will address one of government’s major problems, that is, find new sources of revenue. Theoretically, the state is likely to increase the revenue it receives from mining activities in the provinces where mineral resources are being exploited.
However, it is likely not to solve the state’s main challenge. It does not have an effective control over its resources. This is naturally exploited by a multiplicity of actors, from corrupt officials to unethical politicians to corrupt businesspeople to cartels of illegal traders, among others, who are bound in a complex web of crimes, which weaken the state.
It does not help that Mozambique has porous borders, which the crime syndicate use to cross unchecked into neighbouring countries, from where the minerals and other resources are shipped overseas.
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