With plans underway to restart construction of the delayed $20 billion Mozambique LNG project, which promises to produce 13.1 million tonnes of LNG per year for domestic use, it has never been more important to prioritise peace and stability in Mozambique. Following the 2024 general elections, violence during protests has rocked the country, leading to unrest and instability. As the voice of Africa’s energy sector and an advocate for Mozambican prosperity, the African Energy Chamber (AEC) (www.EnergyChamber.org) fully supports the country’s government and calls for peace, stability and sustainable development as Mozambique enters a new era of energy growth.
Since the discovery of significant natural gas deposits off Mozambique’s northern coast in 2010, expectations for the country’s economic prosperity have soared. An IMF report predicted $500 billion in total revenues by 2045 and average annual real GDP growth of 24% from LNG exports between 2021 and next year. Energy majors TotalEnergies, ExxonMobil and Eni are developing integrated LNG projects, while new upstream companies are entering the market and gas-to-power projects are nearing completion.
Projects such as Coral Sul LNG, the Rovuma LNG facility and the Temane gas-to-power plant have the potential to attract billions of dollars in investment and revenues while providing stable energy to over 2 million homes by 2030. These developments represent not only a success story for international investors, but also a success story for Mozambique. The country is positioned as one of the most dynamic gas markets on the African continent, with offshore reserves that could push it into the world’s top ten producers, accounting for up to 20% of African production by 2040.
Geopolitically, these industrialization efforts could benefit the Southern African region as a whole and transform the country into an energy hub for neighboring countries such as Zimbabwe, Tanzania, Zambia, Malawi, Swaziland, and South Africa. In addition, a 2,700 km coastline along the Indian Ocean makes Mozambique a gateway for ships crossing the hemisphere, allowing it to specialize in efficient and global energy production while diversifying access to quality goods at low prices from markets in Asia, India, Europe, and America.
For Mozambique to realise its immense potential, however, it is essential that the country remains firmly committed to political stability and sustainable development. A peaceful and stable environment is the foundation on which the international community can confidently build long-term partnerships, ensuring that the immense opportunities presented by the development of its natural resources translate into tangible benefits for all. Mozambique’s journey to becoming a leading energy producer is intimately linked to its ability to promote unity, security and democratic principles. A sustained commitment to peace will not only reassure international investors, but will also strengthen the country in a way that drives broad-based prosperity for its people and solidifies its role as a key player in Africa’s energy future.
“Peace and stability are essential for Mozambique to unlock its immense economic potential. As the country emerges as a global energy hub, the confidence of the international community rests on a unified and secure nation. A commitment to peace will not only ensure the success of the multi-billion dollar energy projects, but will also ensure long-term prosperity, driving sustainable growth for Mozambique and the entire Southern African region. To achieve this, the government must find common ground and reach agreements that translate into long-term benefits for all the people of the country,” said NJ Ayuk, Executive Chairman of the AEC.
In the interest of Mozambique’s prosperity, social well-being and economic development, the AEC calls on the government and opposition to strike a balance and commit to post-colonial and post-conflict stability. Mozambique is at a crossroads: one path leads to increased instability, while the other has the potential to transform the country into a trusted partner in the global energy community.
Distributed by APO Group on behalf of African Energy Chamber.
