A Long-standing Debate Resurfacing as Political Rhetoric Among Mozambican Presidential Candidates
As Mozambique approaches the presidential elections scheduled for 9 October, the topic of tax incentives in the extractive industry has taken center stage, with candidates promising to revisit and renegotiate the contracts of megaprojects. However, while these promises may resonate with the public, the specifics of what this renegotiation entails remain largely unclear.
All major candidates — ranging from the ruling Frelimo party to the opposition1 — have highlighted the need to reassess the contracts governing the country’s megaprojects. They point to the imbalance between the profits accrued by foreign companies and the benefits reaching ordinary Mozambicans.
Renegotiating contracts with multinational companies is no easy feat. While candidates have been vocal about the need for change, specific
plans, or mechanisms for how this will be accomplished are notably absent. None of the candidates have outlined the legal, economic, or diplomatic steps they would take to renegotiate these contracts without risking investor confidence or economic stability.
This article delves into the continued significance of this debate and highlights why the stakes involved demand more than mere political rhetoric, calling for concrete actions to address it.
