With plans underway to restart construction of the delayed $20 billion Mozambique LNG project but promising production of 13.1 million tonnes of LNG per year for domestic use, it has never been more important to prioritize peace and stability in Mozambique. Following the 2024 general elections, violence during protests shook the country, leading to unrest and instability. Acting as the voice of the African energy sector and advocate for Mozambican prosperity, the African Energy Chamber (AEC) fully supports the country's government and calls for peace, stability and sustainable development as Mozambique enters into a new era of energy growth.
Since the discovery of significant deposits of natural gas 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 revenue while providing stable energy to more than 2 million households by 2030. These developments represent not only a success for international investors, but also a success for Mozambique. The country is positioned as one of the most dynamic gas markets on the African continent, with offshore reserves that could put it among the ten largest global producers, representing 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. Additionally, 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 the markets of Asia, India, Europe and America.
For Mozambique to realize 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 basis on which the international community can confidently build long-term partnerships, ensuring that the immense opportunities offered by the development of its natural resources are translated into concrete benefits for all. Mozambique's journey to becoming a leading energy producer is closely linked to its ability to promote unity, security and democratic principles. A sustained commitment to peace will not only reassure international investors, but also strengthen the country in a way that drives broad-based prosperity for its people and cement 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 international community's trust rests in a unified and secure nation. A commitment to peace will not only ensure the success of multi-billion dollar energy projects, but also ensure long-term prosperity, spurring sustainable growth for Mozambique and the entire Southern African region. To do this, the government must find common ground and reach agreements that translate into long-term benefits for the entire population of the country,” says 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 finds itself 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.
