In the current context of weak capacity to mobilize external resources to finance the State Budget, the Government has the possibility to focus on mobilizing internal financial resources, as an alternative to the excessive option of internal credit. An important element of this effort would be the review of the generous terms included in mega-project contracts. Kenmare Moma Mining Ltd (KMML) is a clear example of this.
In the period from 2011 to 2018, even though the mine was still producing below its potential, KMML recorded accumulated profits of around USD 312.7 million without the due tax contribution. This fact is due, among other aspects, to generous benefits that caused losses to the State of at least 1.5 billion meticais in this period.
