Mozambique’s northern Rovuma basin has the potential to create significant wealth in the region with the discovery of natural gas. What that holds back is the struggle against a local Islamist insurgency. Since 2017, attacks on villages, government structures and local transport networks have been launched by Islamist militants, who thrive in a region characterized by poverty and destitution.
Against all odds, the government is hoping to ramp up investment in oil and gas projects since the LNG projects have the potential to create over 15,000 jobs while supporting upstream projects including electricity generation. Despite the World Bank estimates in 2019 that the GDP had grown appreciably at 7.2% on an average between 2000 and 2016, poverty rates remained largely unchanged, particularly in the Cabo Delgado region.
There are a few multinational companies interested in investing in hydrocarbon. For instance, ExxonMobil confirmed that it plans to invest more than US$500m in the initial construction phase of its LNG project, a project which would cost US$30billion, which will be jointly operated with Italy’s Eni, as reported by www.trendsnafrica.com a couple of weeks back The project will add a capacity 15million tonnes a year.
Amidst these positive vibes, there are dissents also. A few industrialists allege that President Filipe Nyus, who was focusing more on the safety of foreign companies over ordinary northerners. They highlight the government’s blindness to local grievances, which can stoke tensions.
