Mozambique Must Negotiate Beyond Taxes to Capture More Value From Resources, Economist Says
Mozambique Must Negotiate Beyond Taxes to Capture More Value From Resources, Economist Says
The government should not limit negotiations with foreign investors to tax rates and its position in the value chain but must also secure broader commitments, Firmino Chirrime, a macroeconometric researcher and member of the Mozambican Association of Economists, told Sputnik Africa.
He outlined several key dimensions for negotiation:
🟠Local processing and technological transfer;
🟠National purchases and development of small and medium-sized enterprises (SMEs);
🟠Training centers, university programs, and laboratories;
🟠Shared infrastructure and long-term contracts with SMEs;
🟠Diversification of partners.
"The marginal cost of processing in Mozambique must be competitive relative to the cost of exporting," Chirrime cautioned.
He identified energy reliability and infrastructure as critical challenges, citing graphite deposits in Inhaça province as an example.
The expert also stressed the need for capital injection through mixed funds, development banks, and other institutions.
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