TotalEnergies’ liquefied natural gas (LNG) project in Mozambique could resume in the next 18 months following the deployment of armies from African countries to help fight insurgency, the president of the African Development Bank (AfDB) said.
The French energy giant halted the $20 billion project in April after fighters linked to Islamic State overran the town of Palma in Cabo Delgado province.
At the time, it was estimated that such a move would delay continuity by at least a year.
Troops from Rwanda and the Southern African Development Community (SADC) Standby Force were deployed to support Mozambican forces to contain the insurgency in June and there have since been reports of advances against the insurgents.
Mozambican President Filipe Nyusi said the army is now retaking the ground in Cabo Delgado.
Last month, security forces from Mozambique and Rwanda recaptured the port town of Mocímboa da Praia, previously a stronghold of the insurgents.
ADB president Akinwumi Adesina told Reuters he did not expect the disruption to affect the long-term viability of the LNG project.
“The return of security to that site will give guarantees for Total and others to come back,” Adesina said, adding that “in a year to 18 months, I hope, it will be stabilised enough to get back on track.”
TotalEnergies has not yet commented on Adesina’s statement.
The AfDB has lent $400 million to the project, which is the largest foreign direct investment in Africa and a pillar of Mozambique’s economic development strategy.
“We were really worried when Total declared force majeure and had to move. But one can understand, because of the insecurity situation,” the AfDB president added.
On the other hand, Akinwumi Adesina acknowledged that insecurity still restricts investments in other parts of Africa, pointing to conflict zones in Chad, Mali, Burkina Faso, northern Nigeria and Cameroon.
He said the AfDB is setting up facilities, including security-indexed investment bonds, to help African countries combat insecurity and rebuild after the unrest.
“Without security, you cannot have investment and you cannot have development,” he concluded.
