Since the announcement of the resumption of the Liquefied Natural Gas (LNG) project in the Rovuma Basin, Cabo Delgado has experienced an unusual influx of entrepreneurs and investors. This was confirmed by the provincial representative of the Confederation of Economic Associations of Mozambique (CTA).
Almost four years after the suspension of the Mozambique LNG project in Area 1 of the Rovuma Basin, following terrorist attacks, Cabo Delgado’s economy is beginning to revive.
“With the lifting of force majeure, we are already noticing increased activity in our province. We are seeing the arrival of entrepreneurs and new investments,” said Mamudo Irache, CTA representative in Cabo Delgado.
The reported massive influx of entrepreneurs and investors into Cabo Delgado is a concern for local businesspeople, some of whom anticipate increased competition over business opportunities generated by the gas exploitation in Area 1 of the Rovuma Basin.
“One of the causes of instability in any country is the lack of local content involvement, because it makes no sense to have major initiatives here without involving local youth—it creates frustration,” said Josué Assane, a businessman in Cabo Delgado.
“In addition to the perceived exclusion from business opportunities, Cabo Delgado entrepreneurs are concerned about the containment approach to LNG operations in Afungi—a plan that could hinder the livelihoods of the local population and the development of the province
The General Inspectorate of Local Content recognises the concerns of Cabo Delgado entrepreneurs and assures balance in all natural resource exploration businesses taking place in the province.
Cabo Delgado hosts several mega-projects, but most business opportunities are linked to the liquefied natural gas exploitation in Area 1 of the Rovuma Basin, considered one of the world’s largest gas reserves.
Source: Club Of Mozambique / O País
