The restart of the Mozambique LNG project places Cabo Delgado back at the center of the economic agenda and reopens the debate on the role of local content. With $4 billion allocated to national companies, the private sector advocates for broader participation in the value chain.
At the end of January, TotalEnergies officially resumed the Mozambique LNG project on the Afungi Peninsula, Cabo Delgado province, which had been suspended for five years due to armed insurgency in northern Mozambique. Valued at $20 billion, this is the largest ongoing private investment in Africa and marks a new phase in national natural gas exploration.
The symbolic ceremony was attended by President Daniel Chapo, who stated that the resumption of construction “symbolizes the resilience, courage, and determination of the Mozambican people in the face of adversity.” He added that “more than a physical restart, it is a national affirmation of hope and progress.”
As the project returns to the national economic agenda, Economia e Mercado magazine consulted the private sector to assess expectations regarding opportunities for Mozambican companies, the remaining challenges, and the role of local content in consolidating tangible benefits for the economy.
Private Sector Advocates Strengthening Local Content
The Confederation of Economic Associations of Mozambique (CTA), through its Local Content Bureau, believes the Mozambique LNG restart opens a window to expand national companies’ participation in the gas value chain. The bureau operates with an executive team, promoting regular dialogue among stakeholders, information and training sessions, and monitoring key indicators such as employment and local procurement.
Adrian Frey, president of the bureau, stated that in this new phase of the project, “TotalEnergies plans to allocate around $4 billion to local content, which corresponds to approximately 17% of the total project value.”
For the organization, this is a relevant starting point but insufficient given the existing potential. Frey added, “The goal should be a progressive increase of this percentage, aiming to reach levels close to 50% over the medium and long term.” This development will depend on coordination among the private sector, government, international companies, and development partners.
“The goal should be a progressive increase of this percentage (17%) of local content, to reach levels close to 50% in the medium and long term.”
The CTA believes the restart should not be analyzed solely through the lens of direct investment but also as an opportunity to better structure the national business ecosystem, strengthening technical skills, financial capacity, and industrial integration.
Sectors with Highest Integration Potential
According to the CTA, sectors most likely to benefit immediately include logistics, transport, catering, storage, maintenance, security, training, agriculture, fuel supply, and construction.
Beyond direct project support activities, the application of the Petroleum Law, which allocates 25% of gas to the domestic market, could stimulate the development of processing industries in fertilizers, energy production, methanol, cement, and other related industrial sectors.
The organization also highlights the importance of industrial parks as instruments to consolidate local content, “allowing national companies to concentrate and creating conditions to compete for larger contracts.”
Companies More Prepared After Suspension Period
According to the CTA, “national companies are now better prepared than before the project’s suspension. The experience gained with the Coral Sul project, as well as other ongoing industrial initiatives in the country, has helped raise quality and performance standards.” During the suspension, capacity-building programs were also implemented. Initiatives such as CapacitaMoz and MozUp supported over one hundred companies, including in international certification processes.
Despite these advances, the private sector recognizes remaining constraints, particularly regarding access to financing. “Credit costs in Mozambique remain high, limiting the ability of small and medium-sized companies to meet the technical and financial requirements of large contracts,” Adrian Frey noted.
Among CTA’s proposals are improving factoring conditions with more competitive rates and reducing payment terms from large companies, to relieve pressure on the cash flow of national suppliers.
Employment and Internships at the Core of Priorities
Socially, the Local Content Bureau prioritizes employment and internships. Data collected by the organization indicate that Cabo Delgado currently has 20,000 to 26,000 formal jobs, and the project restart could add more than 10,000. CTA advocates that companies reserve about 10% of their workforce for internships, understood as a transition mechanism to permanent employment. Over the past two years, TotalEnergies supported around 500 internships in the province.
Additionally, programs funded by the World Bank, African Development Bank, and KfW are expected to include youth from Cabo Delgado, Niassa, and Nampula provinces, strengthening technical training and labor market integration.
Regarding the regulatory framework, the CTA supports the government initiative to approve a specific law on local content. The organization participated in public consultations and conducted awareness sessions for companies. According to the bureau president, “the legislation should ensure clear and predictable rules while creating space for international companies to voluntarily expand their local integration initiatives.”
The Mozambique LNG restart thus serves as a test of coordination capacity among the government, private sector, and international investors. For the CTA, “the central challenge is to transform investment into structural gains for the national economy, with greater business participation, job creation, and sustainable industrial development.”
Text: Nário Sixpene • Photography: D.R.
