The first week of September 2025 was marked by challenges and new beginnings, as well as issues negatively affecting Mozambique’s economic environment. After months of waiting, TotalEnergies finally signaled “positive signs,” now entering the final stage of preparations to lift the “force majeure” clause applied to the Mozambique LNG project, suspended since March 2021 due to deteriorating security conditions in the Palma district, Cabo Delgado province.
The announcement was made by TotalEnergies’ General Manager in Mozambique, Maxime Rabilloud, on the sidelines of the inauguration of the Quitunda-Senga road, a 1.7-kilometer social infrastructure project built with an investment of approximately 169 million meticais (2.6 million USD) to directly benefit resettled communities.
“We are preparing to lift the ‘force majeure,’ and that is the work we are undertaking to restart the project,” Rabilloud stated to the local population during the public ceremony. On the same day, he held a private meeting with Palma business representatives to discuss the local private sector’s participation in the project’s economic cycle. The business community raised concerns regarding access to supply opportunities, the centralization of operations at the Afungi camp, and the need to strengthen communication channels between the multinational and local operators.
New Management Company Created to Restructure LAM Debt
The Institute for State Shareholdings Management (IGEPE) announced last Friday (September 5) that it will manage a new entity created exclusively to conduct the debt restructuring process of Linhas Aéreas de Moçambique (LAM), which is currently facing a deep financial crisis.
According to IGEPE’s Chairwoman, Ana Coanai, the new entity will have the mandate to negotiate directly with creditor banks, manage accumulated liabilities, and implement a financial restructuring plan: “The debt restructuring, management, and repayment process will be conducted by a company created by IGEPE,” she stated.
The decision to establish a company dedicated to LAM’s debt management was approved by the Council of Ministers and foresees, in addition to IGEPE’s oversight, the participation of public entities such as Hidroeléctrica de Cahora Bassa (HCB, S.A.), Ports and Railways of Mozambique (CFM, E.P.), and the Mozambican Insurance Company (EMOSE, S.A.), in coordination with LAM’s shareholders.
Economic Contraction in Q2
The National Institute of Statistics (INE) reported that Mozambique’s economy contracted by 0.94% from April to June compared to the same period in 2024, marking the third consecutive quarter of decline. The INE’s National Accounts report indicates that the Gross Domestic Product at market prices (GDPmp) recorded “a negative variation of 0.94%” in the second quarter, “accumulating a decline of 2.40%” in the first six months of 2025.
The INE attributes this negative performance primarily to the secondary sector, which fell 13.87%, with the electricity, gas, and water distribution sector showing the largest decline of 29.36%, followed by manufacturing at -9.44% and construction at -2.21%.
The tertiary sector recorded a negative variation of 1.88%, mainly driven by hospitality and restaurants, which fell 11.34% in Q2, followed by trade and repair services at -5.90%, and transport, storage, and related activities, as well as information and communications, at -3.44%.
External Donations in H1 2025
Mozambique received 7 billion meticais (110.8 million USD) in external donations during the first half of the year, according to a Ministry of Finance execution report. The document indicates that 6.3 billion meticais (100 million USD) came from the World Bank for the program Accelerating the Transformation of Sustainable and Clean Energy Access in Mozambique (ASCENT), which closed in May.
Additionally, 682.5 million meticais (10.8 million USD) were provided by the African Development Bank (AfDB) for the program Climate-Resilient Food and Nutrition Security for Women, Youth, and Smallholder Farmers (CREFONS), which concluded in January.
Source: Germano Ndlovo
