Capital gains charges used in Mozambique for emergency expenses

28 November 2019

The Mozambican government has withdrawn US$248 million from the US$880 million capital gains tax charged on the sale of assets of the Anadarko Petroleum group to the Total group to finance “emergency expenses,” said the Minister of Economy and Finance.

French group Total last September concluded the 26.5% stake of the US group in the Area 1 block of the Rovuma basin in Cabo Delgado province, for the sum of US$3.9 billion following the purchase of Anadarko. Petroleum by the also US group Occidental Petroleum.

Minister Adriano Maleiane gave assurances that the amount withdrawn will be used “responsibly” and so far only half has been spent on emergency expenditure, which included financing the general election deficit and recovering from the impacts of cyclones Idai and Kenneth, according to the Mozambican press.

“I can guarantee that the capital gains money is well kept in a special account at the Bank of Mozambique. What was taken will be fully returned,” said the Minister of Economy and Finance, who was speaking in Maputo on the sidelines of the launch of a study on the banking sector in Mozambique, prepared by KPMG in partnership with the Mozambican Association of Banks (AMB).  (Macauhub)