Mozambique Sees Decline in FDI as TOTAL Holds Up Massive Gas Project - Africa’s premier report on the oil, gas and energy landscape.

Mozambique Sees Decline in FDI as TOTAL Holds Up Massive Gas Project

Mozambique experienced a 32% reduction in the flow of Foreign Direct Investment (FDI), totalling $350.4Million in the second quarter of 2023, compared with $460.1Million in the previous quarter.

The raft of investment in the construction phase of gas development projects: by Sasol in its Production Sharing Agreement (PSA) licence onshore inhambane province; by ENI on the Coral South FLNG and TOTAL in the large 13Million Metric tonnes LNG project, have cooled. Sasol has nearly completed the integrated oil and gas projects in inhambane; ENI is now producing from Coral South FLNG and so is no longer in the spending mode and TOTAL hasn’t entirely returned to work in the troubled Cabo Delgado province.

Data contained in the most recent Bank of Mozambique (BdM)’s monthly Statistical Information (SI) report, recently indicates that the decline is largely attributed to almost 50% drop in investments in the extractive industry, especially in Major Projects (GP).

The SI report said: “In the period under review, the flow of FDI in Major Projects totalled $278.8Million dollars, compared to $414.6Million in the previous quarter.”

South Africa remains the largest contributor of FDI inflows into Mozambique (39.1%).

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