Exploring the Nexus Between Oil and Gas Investments and Development in Mozambique

The document examines how Mozambique's vast natural gas reserves, particularly in the Rovuma Basin, have failed to translate into sustainable development, instead contributing to regional inequality, corruption, and civil unrest in Cabo Delgado. It analyzes the 'enclave' nature of extractive projects and the country's severe debt crisis, including the 'Tuna Bonds' scandal. The brief also addresses the gendered impacts of the energy sector and the challenges of transitioning to a just energy future while managing critical minerals like graphite.

• Mozambique exhibits characteristics of a rentier state where resource wealth is poorly distributed; between 2010 and 2018, the extractive industry absorbed approximately 70% of foreign direct investment (FDI), yet it accounts for less than 1% of total employment.
• The country is highly susceptible to 'Dutch Disease' due to a lack of export diversification, with 2023 top exports dominated by coal ($1.76 billion), petroleum gases ($1.72 billion), and unwrought aluminium ($1.09 billion).
• Extractive projects in Mozambique operate as 'enclaves' that marginalize local populations; for example, in Tete province, foreign investors acquired 60% of the land for coal mining, leading to the eviction of over 10,000 people.
• Natural gas discoveries in the Rovuma Basin have intensified political conflict and civil unrest, particularly in Cabo Delgado, as opposition groups like RENAMO sought greater access to future profits from gas extraction.
• Mozambique has faced a severe debt crisis, highlighted by the 'Tuna Bonds' scandal where $2 billion in loans from Credit Suisse and VTB Capital were not publicly disclosed and were allegedly misappropriated.
• The oil and gas industry is heavily male-dominated, with women making up only about 10% of the workforce, and women in gas-rich regions like Cabo Delgado face increased risks of gender-based violence and forced displacement.
• Mozambique's energy transition is hindered by a lack of climate finance; while it has mobilised around US$350 million from funds like the GCF and GEF, this covers only about 5% of its estimated requirements.
• The country possesses significant reserves of critical minerals, including graphite, with the Montepuez mine in Cabo Delgado being one of the largest globally; however, Mozambique only utilizes one-third of its graphite resources and capacity.

APA

African Forum and Network on Debt and Development (n.d.). Exploring the Nexus Between Oil and Gas Investments and Development in Mozambique. https://afrodad.org/sites/default/files/publications/Exploring%20the%20Nexus%20Between%20Oil%20and%20Gas%20Investments%20and%20Development%20in%20Mozambique.pdf

Chicago

African Forum and Network on Debt and Development. Exploring the Nexus Between Oil and Gas Investments and Development in Mozambique. n.d. https://afrodad.org/sites/default/files/publications/Exploring%20the%20Nexus%20Between%20Oil%20and%20Gas%20Investments%20and%20Development%20in%20Mozambique.pdf.

Wikipedia

{{cite report |author=African Forum and Network on Debt and Development |title=Exploring the Nexus Between Oil and Gas Investments and Development in Mozambique |url=https://afrodad.org/sites/default/files/publications/Exploring%20the%20Nexus%20Between%20Oil%20and%20Gas%20Investments%20and%20Development%20in%20Mozambique.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{africanforumandnetworkondebtanddevelopmentndexploring, author = {{African Forum and Network on Debt and Development}}, title = {{Exploring the Nexus Between Oil and Gas Investments and Development in Mozambique}}, institution = {African Forum and Network on Debt and Development}, url = {https://afrodad.org/sites/default/files/publications/Exploring%20the%20Nexus%20Between%20Oil%20and%20Gas%20Investments%20and%20Development%20in%20Mozambique.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }