Mozambique’s Remarkable Dividend Revenue Growth Spearheaded by HCB

Mozambique’s Remarkable Dividend Revenue Growth Spearheaded by HCB

A Significant Leap in Dividend Contributions

The first half of 2023 saw a marked increase in the dividend contributions to the state coffers of Mozambique. Leading the charge was Hidroeléctrica de Cahora Bassa (HCB), the entity responsible for operating the Cahora Bassa dam. HCB contributed an impressive $51.1 million in dividends, which accounted for 64.6% of the total dividends paid during this period, thereby making it the most significant contributor.

The Substantial Contributors

After HCB, the Ports and Rail Company (CFM) proved to be the next major contributor, paying around $17 million in dividends. This amount constituted 21% of the total dividends paid during the first half of 2023. Following CFM, the Banco Internacional de Moçambique (BIM) took third place with a contribution of around $9 million, representing 11.3% of the total dividends.

The Mozambican Hydrocarbon Company (CMH) also made a significant contribution, adding approximately $2.5 million to the state’s coffers. This amount represented 3.2% of the total dividends paid to the state in the first half of 2023.

Notable Absences and Past Contributions

Despite being major contributors in the past, two companies, insurance firm EMOSE and aluminium smelter Mozal, did not pay dividends during the first half of 2023. However, both companies had made notable contributions in the same period in 2022, with EMOSE and Mozal contributing approximately $1.25 million and $2.85 million, respectively.

Reflecting on the Total Dividend Revenue

The total dividend revenue for the first half of 2023 was approximately $79.6 million, a significant increase of 153.6% compared to the first half of 2022 when the amount was around $31.3 million. This substantial increase in revenue indicates significant growth in the profitability of state-owned or state-participated companies.

Dividends represented 3.8% of the total revenue collected by the government in the first half of 2023, which amounted to approximately $2.08 billion. This is an increase from the same period in 2022 when the total revenue was around $1.9 billion.

Indications for the Future

The significant increase in dividend revenue in the first half of 2023 demonstrates a positive trend in the profitability of Mozambique’s state-owned and state-participated companies. With leading contributors like HCB, CFM, and BIM, the state’s coffers have seen a remarkable increase. These trends indicate a promising future for the state’s revenue generation, which could translate into increased investment in public services and infrastructure.