Amid progress in the gas sector, achievements in tourism, and financial relief, Mozambique recorded notable economic developments this week. The potential resumption of the country’s largest natural gas project, international recognition of one of its key tourist destinations, and the third consecutive drop in the benchmark interest rate for bank credit highlight a recovering economy, showing signs of growing confidence and foreign appeal.
French oil company TotalEnergies, in partnership with the Government, is engaged in active negotiations to resume the Mozambique LNG project — a venture valued at approximately 1.28 trillion meticais ($20 billion), located in Area 1 of the Rovuma Basin. According to TotalEnergies CEO Patrick Pouyanné, the dialogue with national authorities is “constructive” and aims to ensure a “strong alignment” between the parties before formal re-engagement, expected in September.
The project has been suspended since April 2021 following armed attacks in Cabo Delgado. However, the recent approval of a $4.7 billion (301.6 billion meticais) financing package by the U.S. Export-Import Bank has revived expectations of a concrete restart later this year.
In the tourism sector, the recognition of the Maputo National Park as a UNESCO World Heritage Site was once again in the spotlight, this time through an analysis by Muhammad Abdullah, Head of the Tourism Department at CTA and CEO of COTUR. In an interview with Diário Económico, Abdullah emphasized that this designation represents a real opportunity to develop sustainable tourism in Mozambique, with direct impacts on local communities, investment attraction, and the appreciation of natural heritage.
He further underlined the need for investments in infrastructure, local guide training, international partnerships, and integration with neighboring parks such as South Africa’s iSimangaliso Wetland Park. According to Abdullah, this recognition could reposition Mozambique as a reference in African ecotourism — provided the necessary structural and institutional conditions are in place.
The third major highlight of the week was the announcement that the benchmark interest rate for bank credit (prime rate) will drop to 17.20% starting in August. This marks the third consecutive reduction since June, part of a cycle that began in 2024, reflecting the Bank of Mozambique’s efforts to follow the downward trend in inflation and stimulate access to financing.
The measure is seen as a relief for businesses and households, particularly in a context where rates had reached 24.1% in 2023. The decision follows the Monetary Policy Committee’s move to reduce the MIMO rate to 11%, as part of a strategy to consolidate medium-term macroeconomic stability.
On the other hand, the national mining sector received unfavorable ratings in the latest report from the Fraser Institute, which placed Mozambique among the ten least attractive jurisdictions in the world for investment. The country was listed alongside regions such as Ethiopia, Suriname, and Madagascar, due to issues such as regulatory instability, land disputes, poor logistics, and security risks.
Elmira Aliakbari, Director of the Natural Resources Studies Center at the Fraser Institute, warned that to improve Mozambique’s international reputation, it is essential to ensure regulatory stability and respect for contracts — both considered key to attracting foreign investment in a sector with high potential like mining.
Text: Felisberto Ruco
