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Cabo Delgado: CTA Reiterates Its Support for TotalEnergies’ Investment and Distances Itself From the Statements Made by Its Provincial Delegate

Cabo Delgado: CTA Reiterates Its Support for TotalEnergies’ Investment and Distances Itself From the Statements Made by Its Provincial Delegate

A few days ago, an article was published in the media, in which the representative of the delegation of the Confederation of Economic Associations (CTA) and also president of the Cabo Delgado Business Council, Mamudo Irachi, defended the withdrawal of French investment from Area 1 of the Rovuma Basin because he believed it would “bring more misfortune and insecurity to the province”.

On Wednesday 21 February, the central CTA issued a statement distancing itself from the pronouncements of its delegate in that province, explaining that it is not its role to react to the decision of the French Embassy, which has advised its citizens not to travel to Cabo Delgado due to the upsurge in instability.

a d v e r t i s e m e n t

“Looking at the content of the statement from the French Embassy and the statements made by the representative of the provincial delegation of the CTA, the organisation’s board of directors does not agree with these statements, as it considers this to be a matter for the state and not its mission, which is to build and lead a business environment that places the private sector as an active player and maker of our economy,” reads a statement from the organisation.

The organisation adds “that it does not meddle in state affairs, although it is concerned about the situation of insecurity in Cabo Delgado. On the other hand, the CTA board sees no connection between the French government’s statement, via its embassy in Maputo, and TotalEnergies’ performance. We therefore wish to continue deepening the relations already underway with the Mozambique LNG project, in order to strengthen the maximisation of local content.”

CTA recognises “the military instability in Cabo Delgado which, in recent months, has seen a worrying upsurge in terrorist actions. It has brought uncertainties that negatively influence the prospects for economic growth in the province in particular, and the country in general.”

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With regard to the Area 1 project, led by TotalEnergies, with an investment of around 20 billion dollars, the organisation explains that “there are high hopes for its recovery, on the one hand because of the impact it has on stabilising public funds and raising revenue for development programmes, both in Cabo Delgado province and at national level, and, on the other hand, for the business connections that are expected and the support that the French multinational has been giving through the province’s Provincial Business Council (CEP), to strengthen national Micro, Small and Medium Enterprises (MSMEs)”.

The association’s document highlights that the body, in partnership with TotalEnergies – operator of the Mozambique LNG project – has developed a series of activities to maximise and enhance local content with a view to the project’s recovery.



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