Energy sector crucial for economic consolidation

Maputo, 17 Mar (AIM) – Mozambican President Daniel Chapo believes that the country’s energy sector plays a crucial role in the economic consolidation of the Southern African Development Community (SADC).

According to the President, who was speaking on Monday to Belgian businessmen, during his working visit to Brussels, Mozambique is a strategic partner when it comes to energy and logistics as it has “mega-projects in gas, renewable energies, and ports. Energy and logistics are fundamental in contributing to sustainable development.”

“Our country has unique conditions to become a reference centre in the region, taking advantage of energy resources and logistical infrastructure. The TotalEnergies liquefied natural gas project began around 2017, but had to be interrupted due to terrorism. However, last month, the project was resumed”, he said.

The insurgency in the northern province of Cabo Delgado, which erupted in 2017, brought construction of the LNG project, headed by the French company TotalEnergies, to a halt. But work by the Mozambican defence and security forces and their Rwandan allies, particularly in the key districts of Palma and Mocimboa da Praia, allowed TotalEnergies to lift the state of force majeure which it had declared in 2021.

“We also believe that in August or September, we will be able to jointly announce the final decision on the project led by the American company ExxonMobil. In the SADC region, Mozambique has the potential to become a true energy hub. We already have the Cahora Bassa hydroelectric plant, which is already supplying power to six neighboring countries”, he said.

According to Chapo, the country intends to promote industrialization, using its gas to produce fertilisers, as well as creating power plants and transmission lines.

Economic diversification, the President said, includes the sectors of agriculture, tourism, and environmental conservation.

“The country has vast agricultural areas, approximately 2,700 kilometers of coastline, and natural reserves such as Gorongosa and Niassa, attracting investors interested in food security and sustainable tourism”, he said.

For his part, the Minister of Communications, Américo Muchanga, said that Mozambique’s logistics sector is a gateway to the interior of the Southern Africa region.

“We want to invest in the digitalization of logistics infrastructure, creating new digital corridors that complement the development corridors. We have the strategic ports of Maputo, Beira, and Nacala, which are crucial for development”, he said.
(AIM)
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