Sasol plans to invest $36.5 million in local development programmes across 70 communities in Mozambique’s Inhambane province by 2030, expanding its support for water, infrastructure, agriculture and small businesses.

The investment will be made under the company’s second Local Development Agreement, covering communities in Inhassoro, Govuro and Vilanculo districts.

The programme builds on Sasol’s earlier community investment as the South African energy company continues its natural gas operations in the province.

The new agreement is expected to reach nearly twice as many communities as the first programme, which ran from 2020 to 2025 and involved 37 communities in Inhassoro and Govuro.

Sasol said the latest programme is intended to address priorities identified by local communities and district governments.

The funding comes as Mozambique seeks to increase the benefits local communities receive from its natural gas and other extractive industries.

Under the programme, projects will focus on basic services, public infrastructure and activities that can help households earn income.

Sasol expands community investment

The second Local Development Agreement will cover 33 communities in Inhassoro, 23 in Govuro and 14 in Vilanculo. Sasol plans to allocate about $20.8 million to Inhassoro, $13.2 million to Govuro and $9 million to Vilanculo.

The first agreement mobilized $20 million and supported projects including water systems, boreholes, schools, community centers, football pitches and irrigation schemes.

The programme also backed cashew production, horticulture, livestock farming, handicrafts and local businesses.

Water, agriculture and infrastructure

Sasol said its earlier programme delivered 11 water supply systems, 25 new boreholes, the rehabilitation of 97 water systems and the restoration of 17 others. Seven classroom blocks, six community centers and four football pitches were also built.

The company said the new phase will continue to support basic services while expanding economic opportunities for communities.

Local Development Agreements are designed to bring Sasol, district governments and communities together to identify and implement projects based on local needs.

Sasol deepens its presence in Mozambique

Sasol is a South African energy and chemicals company with natural gas operations in Mozambique, where it has invested in the country’s gas industry and worked with local suppliers and communities. Its Local Development Agreements form part of its broader social investment programme in areas surrounding its operations.

The company said its cumulative corporate social responsibility investment from July 2020 to June 2026 reached $63.5 million, including $53.7 million financed directly by Sasol.

The projects are covered by Mozambique’s framework for social investment by companies operating in the extractive sector.

For communities in Inhambane, the latest funding means continued investment in water, public infrastructure and income-generating activities.

Sasol’s new programme is set to run through 2030, extending its community development work alongside its gas operations in the province.