Sustainable Development: Mozambique’s Approach to Oil and Gas Expansion

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Mozambique is intensifying its efforts in oil and gas exploration, as highlighted by Florival Mucave, Chairman of the Mozambique Energy Chamber, during the Invest in African Energies: Mozambique Roundtable. This event, in collaboration with the African Energy Chamber (AEC) in Maputo, emphasised the country’s dedication to fully utilizing its hydrocarbon resources to drive industrialization and economic development.

Mucave stressed the strategic necessity of harnessing Mozambique’s extensive oil and gas reserves to alleviate poverty and foster economic growth. He dismissed external arguments against fossil fuel use, asserting that Mozambique should not relinquish its natural resources while developed countries continue to benefit from them. “We believe that oil and gas can bring substantial advantages to our people. Although we are aware of the challenges presented by climate change and are committed to addressing them, we cannot afford to ignore these valuable resources while facing economic hardships,” he stated.

This view was echoed by NJ Ayuk, Executive Chairman of the AEC, who emphasized the importance of collaboration between the public and private sectors to encourage inclusive economic participation, especially among youth and women. He also urged Mozambique to resist international pressure against fossil fuel development, advocating for the exploitation of local resources without apology.

Mozambique’s petroleum regulatory authority is leading initiatives to expedite the rollout of over USD 15 billion in planned projects. Administrator Milton Macuacua Zibane highlighted the urgency of these initiatives, noting that successful implementation could result in significant job creation and economic growth. The country’s energy aspirations are part of a broader strategy for economic transformation. The government aims to establish Mozambique as a significant player in the global energy market, particularly due to its substantial liquefied natural gas (LNG) reserves. Despite challenges related to security in the Cabo Delgado region, where major gas projects are situated, the administration is committed to progressing with its plans.

The discussion around fossil fuel investment in Africa remains contentious. While global climate policies advocate for a shift away from hydrocarbons, African leaders argue for prioritising energy security and economic independence. Like other resource-rich nations, Mozambique faces the challenge of balancing environmental sustainability with urgent economic demands.

International investors maintain a cautiously optimistic outlook on Mozambique’s energy potential. Major corporations, including TotalEnergies and ExxonMobil, hold significant interests in the country’s LNG projects. However, continued investment is contingent upon government policies that ensure regulatory stability, security, and local content development.

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As Mozambique advances its oil and gas initiatives, policymakers must navigate complex geopolitical and environmental challenges. While the energy sector presents significant opportunities for economic transformation, a balanced approach that integrates sustainability, investment security, and fair resource distribution is essential.