The financial rating agency Fitch considers that the approval of the financing by the US bank Exim Bank is a decisive step towards the resumption, later this year, of the natural gas megaproject led by TotalEnergies, in the province of Cabo Delgado.
‘It will improve the prospects for the resumption of the huge project, which could have several positive benefits for Mozambique in the medium term,’ reads the Fitch Ratings note.
The financing now approved amounts to 4.7 billion dollars (423 billion meticals) and is intended to support the export of goods and services from the United States to the Mozambique LNG project, under construction on the Afungi peninsula, Palma district
According to Exim Bank, this is the largest credit operation in its history, enabling it to reactivate a transaction suspended four years ago. The global project led by TotalEnergies is valued at 15 billion dollars (1.3 trillion meticals).
For Fitch, this capital injection could unblock work as early as 2025, after the project was suspended in 2021 following armed attacks in Cabo Delgado.
Despite the positive signal, Fitch warns of risks that are still present: ‘We believe that insecurity will continue to pose significant risks to the completion of the development.’ The US financial support is also expected to sustain 16,400 jobs in 68 US companies spread across 14 states.
Mozambican President Daniel Chapo thanked his US counterpart for his support, emphasising that it ‘contributes to global energy security’ and strengthens the partnership between the two countries.
The director of TotalEnergies in Mozambique, Maxime Rabilloud, described the Exim Bank’s decision as a ‘critical step’ towards effective recovery. ‘We’re still in ‘force majeure’, the project hasn’t restarted, but this decision reaffirms the necessary financial support. It’s a fundamental step forward.’
According to Fitch projections, gas production and exports could start around 2030, positioning Mozambique as a new global energy centre.
Since 2017, Cabo Delgado has been facing an armed insurgency that has caused thousands of deaths and forced the displacement of more than 1 million people.
