Corruption risks in Mozambique’s energy sector

This Anti-Corruption Helpdesk brief was produced in response to a query from a U4 Partner Agency. The U4 Helpdesk is operated by Transparency International in collaboration with the U4 Anti-Corruption Resource Centre based at the Chr. Michelsen Institute.

Query

Please provide a summary of the key corruption risks and potential mitigation measures in Mozambique’s energy sector.

Mozambique’s energy sector has the potential to spur its economic growth. However, corruption, particularly political corruption and conflicts of interest, have constrained its potential to do so. While the government has made some progress in improving the integrity of the sector, such as the creation of a Sovereign Wealth Fund to manage profits, further independence of the regulatory authorities and better consultation with local communities could advance anti-corruption efforts.

Contents

1. Introduction
2. The current state of the energy sector in Mozambique
   1. Key actors
   2. Key challenges
3. Corruption risks in Mozambique’s energy sector
   1. Political corruption
   2. Conflicts of interest
   3. Challenges in the regulatory environment
   4. Inadequate due diligence processes by foreign investors
   5. Corruption in public contracting
   6. Rent-seeking
   7. Petty and private-to-private corruption during distribution
   8. Land corruption risks
4. Responses to corruption in Mozambique’s energy sector
   1. Increased transparency
   2. Stronger regulatory oversight
   3. The management of the Sovereign Wealth Fund
   4. Asset recovery and sanctions
   5. Improved dialogue with local communities
   6. A responsible shift towards renewable energy sources
5. References

Authors

Caitlin Maslen [email protected]

Reviewers

Matthew Jenkins (TI) Rui Mate (CIP)

Carmeliza Soares da Costa Rosário and Saul Mullard (U4)

Date

16/07/2024

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