Mozambique’s Dividend Revenue Experiences Upward Trend

Mozambique’s Dividend Revenue Experiences Upward Trend

In the first half of this year, Mozambique has seen a significant surge in its state revenue from dividends, which now stands at almost 5.641 billion meticais, equivalent to €82.1 million. This figure has more than doubled when compared to the same period in 2022. The contribution of dividends to the total revenue for this period has increased from 1.7% in the first half of 2022 to 3.8%, marking a growth of 153.6% in the state’s dividend income.

Major Contributors to the Increase

The major contributors to this substantial rise in dividend income are two entities, namely the Cahora Bassa Hydroelectric Plant and the Ports and Railways of Mozambique. The former contributed over 3.643 billion meticais (€53 million), while the latter put forth almost 1.182 billion meticais (€17.5 million). These two entities thus represented 64.6% and 21.0% of the total revenue from dividends, respectively.

Additional Contributors to the Dividend Revenue

Additional key contributors included the Millennium Banco Internacional de Moçambique (BIM), which is 66.68% owned by Portugal’s BCP and 17.12% by the Mozambican state, and the Mozambican Hydrocarbons Company. The former contributed almost 640 million meticais (€9.3 million), while the latter added 178.6 million meticais (€2.6 million), representing 11.3% and 3.2% respectively of the state’s total dividend revenue.

Overall Growth in the State’s Current Revenue

The Mozambican state’s current revenue experienced an overall growth of 9.8% in the first half of the year. It now stands at more than 146.474 billion meticais (€2.133 billion). This growth is primarily attributed to an increase in tax collection, which constituted 45.2% of the total. Additionally, the state collected 2.035 billion meticais (€29.6 million) from concessions in various sectors, marking a 13.4% increase from the first half of 2022 and accounting for 1.4% of the total revenue.

Implications and Future Outlook

This significant increase in state revenue from dividends indicates a positive economic outlook for Mozambique. It points towards the potential for increased public spending and investment in infrastructure, healthcare, and education. Moreover, it also highlights the successful performance and profitability of state-owned entities and their vital role in contributing to the national treasury. Looking forward, continued growth in state revenue, particularly from dividends, will be crucial for Mozambique’s economic stability and development.