While there have been recent commitments from the Mozambican government to ensure the integrity of the sector and safeguard its profits for the wider population, such as through the creation of the Sovereign Wealth Fund and an online registry for mining licenses, there is room for improvement. [...] The Cahora Bassa dam currently supplies around 25% of the electricity that is provided by the state to the general population; the majority of the electricity generated by the dam is still exported to South Africa (Cotton, Kirshner and Salite 2019; Kirshner et al. [...] Power is concentrated in the hands of the political party members, with close connections between the party, the state, and the private sector (Salimo, Buur and Macuane 2020). [...] The Administrative Court will audit the government institutions involved in the management of the SWF, and an independent international auditor will conduct the audits and publish the financial statements. [...] Asset recovery and sanctions The Mozambican government has recently made improvements in its asset recovery framework in through the decree for the Management of Seized or Recovered Assets in Favour of the State and the setup of a new asset recovery office (Prusa 2020; Club of Mozambique 2024).
Authors
- Pages
- 32
- Published in
- Norway
Table of Contents
- Introduction 5
- The current state of the energy sector in Mozambique 6
- Key actors 8
- Key challenges 9
- Corruption risks in Mozambique’s energy sector 13
- Political corruption 13
- Conflicts of interest 14
- Challenges in the regulatory environment 15
- Inadequate due diligence processes by foreign investors 15
- Corruption in public contracting 16
- Rent-seeking 18
- Petty and private-to-private corruption during distribution 19
- Land corruption risks 19
- Responses to corruption in Mozambique’s energy sector 22
- Increased transparency 22
- Stronger regulatory oversight 23
- The management of the Sovereign Wealth Fund 24
- Asset recovery and sanctions 25
- Improved dialogue with local communities 26
- A responsible shift towards renewable energy sources 27
- References 28
