Improving the Quality, Capacity and Compliance of Environmental Licensing Processes in Mozambique: The Case of the Oil and Gas Industry

This research paper examines the environmental licensing processes for the oil and gas industry in Mozambique, identifying systemic weaknesses in the quality of assessments, compliance with management plans, and post-licensing transparency. The author argues that these deficiencies stem from a lack of technical capacity within the Ministry for the Co-ordination of Environmental Affairs (MICOA) and proposes three non-legislative mechanisms—peer reviews, expert technical councils, and biodiversity offsets—to improve outcomes for the government, companies, and local communities.

• The environmental licensing process in Mozambique suffers from three primary implementation weaknesses: the poor quality of Environmental Impact Assessments (EIAs), a lack of compliance with approved Environmental Management Plans (EMPs), and insufficient transparency and follow-up after licenses are granted.
• The Ministry for the Co-ordination of Environmental Affairs (MICOA) lacks the technical capacity and resources to effectively oversee the oil and gas sector, which is characterized by massive, complex reports and strict timelines. This institutional weakness makes the quality of the EIA process heavily dependent on the project developer.
• While EIAs generally identify potential impacts and international standards, they often fail by proposing unrealistic mitigation measures and ignoring cumulative and indirect impacts. Furthermore, external stakeholders often perceive these documents as reflecting the company's opinion rather than neutral technical analysis.
• Compliance with EMPs is poorly monitored because Mozambican law does not require public consultations or the public release of monitoring reports during the implementation phase. The author cites a case where seismic acquisition density was approximately five times higher than approved by MICOA without sanctions being applied.
• The author proposes the implementation of independent peer review mechanisms for EIAs to increase technical quality and public trust. This would involve a stakeholder committee selecting an independent review panel to evaluate the EIA at the pre-feasibility and final report stages.
• To address the lack of oversight during project implementation, the paper suggests creating Expert Technical Councils (ETCs). These bodies would work with MICOA and the National Petroleum Institute (INP) to monitor EMP progress and conduct field visits during high-risk phases.
• The paper recommends the use of biodiversity offsets to achieve 'no net loss' of biodiversity, suggesting that Mozambique's existing protected area network could serve as a reservoir for these offsets, funded through the Foundation for the Conservation of Biodiversity.
• There is a strong business case for companies to improve environmental and social standards to secure a 'Social Licence to Operate' (SLO) and meet the requirements of international lenders, such as those adhering to the Equator Principles and IFC Performance Standards.

APA

Nazerali, S. (2014). Improving the Quality, Capacity and Compliance of Environmental Licensing Processes in Mozambique: The Case of the Oil and Gas Industry. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2014/03/Occasional-Paper-178.pdf

Chicago

Nazerali, Sean. Improving the Quality, Capacity and Compliance of Environmental Licensing Processes in Mozambique: The Case of the Oil and Gas Industry. South African Institute of International Affairs, 2014. https://saiia.org.za/wp-content/uploads/2014/03/Occasional-Paper-178.pdf.

Wikipedia

{{cite report |last1=Nazerali |first1=Sean |title=Improving the Quality, Capacity and Compliance of Environmental Licensing Processes in Mozambique: The Case of the Oil and Gas Industry |publisher=South African Institute of International Affairs |date=March 2014 |url=https://saiia.org.za/wp-content/uploads/2014/03/Occasional-Paper-178.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nazerali2014improving, author = {Nazerali, Sean}, title = {{Improving the Quality, Capacity and Compliance of Environmental Licensing Processes in Mozambique: The Case of the Oil and Gas Industry}}, institution = {South African Institute of International Affairs}, year = {2014}, month = mar, url = {https://saiia.org.za/wp-content/uploads/2014/03/Occasional-Paper-178.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }