The socioeconomic impact of coal mining in Mozambique

On 18 February 2021, Eva-Maria Egger and Jorge Mouco, researchers at UNU-WIDER, and Michael Keller, researcher at the University of Copenhagen, discuss their latest research on the coal mining sector in Mozambique. 

The presentation is based on the working paper (in progress) ‘The socioeconomic impact of coal mining in Mozambique’. 

The presentation is in Portuguese. 

To join the seminar and take part in the discussion, register here. By registering, you agree to be added to UNU-WIDER’s customer relationship management system under the Institute’s terms and conditions (Privacy statement and Disclaimer). 

Please note that the presentations is recorded. The presentation slides and the recording will be shared with the seminar participants soon after the event. 

About the research 

This study assesses the impact of the development and opening of four coal mines in Mozambique’s Tete province on socio-economic outcomes of the local population. We combine four waves of household surveys with the information of coal mine locations and employ a difference-in-difference model to estimate the effect. The timing of the surveys allows us to control for pre-trends and differentiate the effect between the investment and production period. The opening of the coal mines led to an increase in consumption and a decline in poverty, which can be explained by movement of workers out of agriculture and into potentially higher-paid jobs in the mining and service sectors. The employment effects are especially strong for women who gain wage jobs and reduce unpaid family work. Access to basic services improved in terms of drinking water, electricity, and health services. Primary education completion rates increased, while young children’s schooling was unaffected. Negative consequences of the coal mine opening are identified in terms of incidence of sickness and decline in market access during the investment period, which could be related to resettling programmes. 

About the IGM Seminar Series  

The online IGM Seminar Series provides a space to discuss research themes with a focus on the challenges of promoting inclusive growth in Mozambique at a time of overlapping crises: the economic and financial crisis of hidden debt, the climate crisis, and the global health crisis.