Mozambique - Afrikan Heroes

We Must Support Mozambique Overcome Terrorist Forces, Protect Lives, and Restore Hope

April 4, 2021

NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group

By NJ Ayuk

“You may kill me with your hatefulness, but still, like air, I’ll rise”. Maya Angelou was so right. These profound words do ring true today when we look at the recent coward attacks by terrorists against defenseless Mozambicans. There’s so much at stake in Mozambique, where the separatist militia known as Haul Sunnah Wa-Jamo (ASWJ) has stepped up its campaign to seize territory in Cabo Delgado, the country’s northernmost province.

On March 24, more than 100 ASWJ fighters attacked Palma, a town in Cabo Delgado, from three sides. Mozambique’s Defense and Security Forces, known locally as SDS, moved in quickly and mounted a counter-attack the next day, but they were not able to regain control immediately.

Moreover, they did not arrive in time to prevent Palma’s residents from violence and death. As of the time I’m writing this, the number of exact casualties is still unknown, but credible sources have reported that there are dead bodies on the streets of the town — and that some of the corpses have been beheaded.

High-Stakes Conflict

Mozambique’s government has strong incentives to push back against ASWJ, which has been staging deadly attacks in Cabo Delgado since 2017.

From a diplomatic and political standpoint, it is keen to preserve the territorial integrity of the country and quash the threat to the central government’s authority. (This is a sensitive issue, since many residents of Cabo Delgado feel marginalized and ignored by the government, even if they don’t view ASWJ as a viable alternative.)

From a geopolitical standpoint, it is intent on prevailing against a group that is serving as the local arm of the Islamic State, also known as Daesh. It’s not interested in letting the country become a haven for terrorism. And yes, this is terrorism – not fighting, not unrest, but terror. Sometimes we in the energy industry have to call it for what it is, no matter how careful we may want to be.

Mozambican leaders understand very well that launching a counterinsurgency push in Cabo Delgado against these extremists will not just defeat the tiny and desperate bands of armed terrorist. Instead, if experience in the rest of the world is any guide, it could transform these zeros into heroes. It will embolden them and strengthen their resolve. And it will enable them to excel in their favorite role, that of persecuted martyr. We must win them over with carrots and sticks and transform communities. Pretty smart thinking. They want to do this right and they want results and still keep the country together. We should support them.

From an economic standpoint, it is determined to eliminate obstacles to the development of the huge natural gas fields that lie off the coast of Cabo Delgado. These gas reserves have already attracted more than US50 billion worth of investment commitments from consortia led by major international oil companies (IOCs) such as France’s Total, Italy’s Eni, and U.S.-based ExxonMobil. Total and its partners have already devoted a great deal of time, effort, and money to the establishment of an onshore base and liquefied natural gas (LNG) plant on the Afungi Peninsula.

This complex, which is just a few kilometers away from Palma, will support upstream development work at the offshore block known as Area 1. It isn’t yet complete, though. If it can’t be finished, Total will have a hard time proceeding with its US20 billion Mozambique LNG project — and Eni and ExxonMobil will have a hard time following suit with their own South Coral LNG and Rovuma LNG projects. This is a real threat, given that Total had to suspend work and evacuated energy workers from the construction site in January, following a series of attacks near Palma in December. Indeed, it’s worth noting that the attack on Palma occurred shortly after reports emerged that Total was preparing to bring workers back before the end of March.

Terrorism and Human Suffering

But the threat to Mozambique isn’t just about gas. It isn’t just about money or security or power or territorial integrity.

It’s also about people. Human beings.

The conflict in Cabo Delgado is wrecking people’s lives on a vast scale. More than 700,000 people have already fled their homes in northern Mozambique, and the count is still rising. According to the United Nations’ refugee agency, UNHCR, the number could top 1 million by the middle of the year if the international community does not take steps to end the conflict.

Thanks to the support and encouragement from President Filipe Nyusi, his government and the governor of Cabo Delgado. I went to Cabo Delgado. The President and Mozambican officials ensured my delegation had complete and unfettered access to the region. Even during the attacks, I still had a team in Cabo Delgado. I’ve seen this suffering firsthand. I paid a visit to a refugee camp in the region. I talked to people who have been hurt, who have seen their family members slaughtered by ASWJ fighters. I met children, some of them as young as 8 or 9 years old, who have been assaulted by terrorists.

And these traumatized souls are living in makeshift, flimsy facilities that are basically made of leaves!

I’m heartbroken and outraged. I’d like to say I’m hopeful that things will change soon, but the UNHCR’s forecast of an increase in the number of refugees over the next few months gives me pause. (It’s also sobering to hear that the UNHCR has only been able to raise 5% of the US254 million in funding that it sought for its work in Mozambique last November.)

Cabo Delgado Needs More Than Security

I’m not trying to give the impression that nothing is being done for Cabo Delgado and its people. That would not be fair or accurate.

With respect to security, Maputo has pledged to work with Total to establish a safe zone around the gas complex on the Afungi Peninsula. It will have to step up its efforts on this front, given that the attack on Palma occurred inside the perimeter of the designated zone, but it is seeking help. Also, earlier this month, Mozambique’s government invited U.S. military advisors and special forces into the country to deliver counter-terrorism training. It has also accepted an offer from Portugal, its former colonial ruler, to provide additional training for the Mozambican armed forces.

But this isn’t going to be enough.

Even though Mozambique’s government is committed to doing everything it can to bring real peace and stability to Cabo Delgado, it needs more support than it is currently getting. It will need ongoing support from the international community — not just in response to the most recent attacks, but for the long haul.

If it doesn’t get that, ASWJ will continue to wreak havoc and force people out of their homes, making terrorism the biggest cause of poverty in Mozambique. If there isn’t enough help — and if large-scale projects like Mozambique LNG no longer are an option to create jobs and grow the economy — the country will sink further into despair. Cabo Delgado’s people will feel even more marginalized. The country’s natural environment will continue to suffer damage, and there will be no one available to help.

Doing More — And Doing Better

So now more than ever, we have to find ways to combat terror in Cabo Delgado.

There has been talk about negotiations and giving amnesty to ASWJ members who give up the fight. And as I’ve already mentioned, there are plans to provide training and advisory services to Mozambique’s armed forces.

But we have to do more, and we have to do better — not just the international community, but all of us, as individuals and business leaders.

We can start by denouncing the evil that we’re seeing in Mozambique. We must condemn the assaults and the crimes that are being committed by the terrorists who seek to gain control of Cabo Delgado. We can’t just remain quiet, as if nothing consequential is happening there. We must give President Nyusi the necessary support and backing to fix this.

Right now, more than ever, the country needs our support and our voices, and our involvement. “Leaving behind nights of terror and fear, I rise. Into a daybreak that’s wondrously clear, I rise”. Concluded Maya Angelou. Energy workers, Palma, Cabo Delgado and Mozambique will rise out of this like the African sun rises everyday.

NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org).

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Regional Integration at the Forefront of Mozambique’s Energy Success

March 8, 2021

By Charnè Hundermark

As one of leading resource-rich countries in sub-Saharan Africa, Mozambique has the potential to not only significantly advance its own socioeconomic status, but also dramatically boost economic growth throughout the region. According to the World Bank Group, regional integration helps countries to overcome divisions that impede the flow of goods, services, capital, people and ideas. As large-scale energy projects are expected to come online in Mozambique through 2023, the country has observed renewed political commitment to establishing sustainable regional integration with neighboring governments and private operators. By prioritizing cross-border cooperation across its energy value chain, Mozambique is well-positioned to achieve shared objectives, including widespread electrification, establishment of energy security and access to a wider regional market.

Hydropower Spurs Regional Electrification

Mozambique is one of the top electricity exporters in Southern Africa, largely due to its significant hydropower resources and growing gas-to-power potential. The 2,075 MW Cahora Bassa Hydroelectric Dam in Mozambique represents the largest hydropower facility in Southern Africa and has enabled the country to become a top regional electricity exporter. With only 500 MW procured for domestic use, Mozambique transports the surplus electricity to neighboring South Africa, Zimbabwe and Botswana. Through the establishment of the Southern Africa Power Pool – as well as cooperation agreements with Zimbabwe and South Africa – Mozambique has been able to effectively monetize its hydropower resources through proven demand linkages. What’s more, this form of regional integration has allowed electricity-deficient countries in the region to increase their own electricity access rates and reduce associated costs for their growing populations.

Integration Increases Market Accessibility

The World Bank Group has posited that fragmentation within sub-Saharan Africa has led to the creation of small, isolated domestic markets characterized by high production costs and low investment. By spearheading regional integration, resource-rich nations such as Mozambique can connect to growing markets within the sub-region, including Tanzania, Zambia, Uganda, South Africa, Rwanda and Angola. As a growing number of African countries re-direct their focus on cleaner sources of energy, such as natural gas, regional integration can ensure that Mozambique’s sizable reserves are effectively monetized. By prioritizing infrastructure connectivity, Mozambique can establish a direct link to viable Liquefied Natural Gas (LNG) markets for export. Moreover, regional integration can lower the cost of getting Mozambican gas to market. By integrating infrastructure and pooling resources, countries can bridge supply, gain direct access to regional markets and utilize both current and emerging infrastructure, in turn significantly reducing project costs for all parties involved.

Mozambique Drives Regional Growth

According to the World Energy Council, security of supply remains one of the primary drivers of the development of interconnections between countries. Facing challenges such as lack of critical infrastructure, depletion of national energy resources and the need to diversify energy supply, countries such as Zimbabwe and South Africa are turning to Mozambique as a viable energy supply solution. By leveraging these connections, Mozambique can ensure energy success, secure vital foreign currency revenues and establish strong bilateral relations, spurring long-term regional economic growth in the process. Moreover, the World Energy Council notes that the provision of affordable, modern energy to developing countries to meet growing demand will have a domino effect on productivity and macro-economic growth.

For international investors, regional integration among developing countries can foster a more attractive investment climate as a result of shared resources, and therefore, increased security and alleviated risk. In fact, regional integration may lead to a greater influx of capital for projects compared to individual domestic developments. This is evidenced by projects such as the African Renaissance Pipeline Project – a 2,600-km natural gas pipeline linking Mozambique’s natural gas to South Africa’s growing demand – and the Temane Natural Gas Project – a collaborative gas-to-power project between the Mozambican Government and South African energy and chemical company Sasol. By drawing on integration opportunities, Mozambique can drive sectoral growth and establish itself as both a regional and global competitor.

Still, significant challenges must be addressed if Mozambique is to realize the full scope of its industry growth and success. The lack of adequate complementary policies and regulations may lead to ineffective outcomes and inhibit productive cooperation. Additionally, the World Bank Group suggests that countries may hold varying priorities for regional integration, depending on their connectivity gaps, economic geography or preference for sovereignty in specific areas. By addressing these concerns, Mozambique will be better equipped to monetize its natural gas resources, in which regional integration can ensure maximum project success.

Africa Oil & Power is working with the Mozambican government to promote investment in energy and diverse sectors, including agriculture, industry, tourism, construction and logistics in 2021.Visit www.MzGasAndPower.com for more details.

Charnè Hundermark is Writer/sub editor at Africa Oil & Power

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Mozambique’s LNG is the Economic Game Changer

October 15, 2019

As Mozambicans await the results of the general elections, the incoming government is sure to benefit from the country’s second Final Investment Decision (FID) in the gas sector. In just two years Mozambique has officially positioned itself as a key player in the global gas and LNG market for years to come. The latest FID on the US$20 billion Mozambique LNG project makes it the largest ever in sub-Saharan Africa oil and gas. According to President Nyusi as this project is one of the most important and transformational projects in the country’s history and is set to be a game-changer for the nation of 31 million people.

According to Wood Mac, from the early 2030s state revenue from Mozambique LNG alone will reach US$3 billion per annum, single-handedly doubling today’s revenue as calculated by the IMF and World Bank. And this is not the only mega-LNG project on the drawing board. ExxonMobil’s Rovuma LNG project, which envisages a 15 million tpa two-train facility taking gas from its offshore area 4 block, is also lined up to take FID. Meanwhile, Italy’s ENI is already moving ahead with its 3.4 million tpa floating LNG facility, which will draw on 5 TCF of gas in waters more than 2,000 metres deep with first gas due in mid-2022. “With strong LNG demand growth out of Asia, now is Mozambique’s time,” said Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, as news broke of the Anadarko FID.

With FIDs signed, the projects are now moving from the planning into the implementation phase. Hundreds of contracts are expected to be tendered for the construction, infrastructure and services needed to build and develop the megaprojects.

More recently, Mozambique Rovuma Venture (MRV) Area 4 operator decided to move ahead with the midstream and upstream project activities of over US $500 million as initial investments. These investments include activities such as the construction of the pioneer camp, the development of resettlement activities, the construction of the airstrip and access roads, as well as the start of detailed LNG facility engineering project.

It makes this the ideal time to participate at the 6th Mozambique Gas Summit & Exhibition, in partnership with ENH, taking place on 13-14 November in Maputo. The event is the official platform to hear from key decision-makers in this fast-emerging LNG hotspot, including key Government figures, policy-makers and all the major project stakeholders who will be in attendance. This edition is taking place at a time of exciting change including; the construction of FLNG, the progress in drilling activities in Cabo Delgado and Angoche, and the infrastructure development in Pemba Logistics Base. The event is organised in partnership with ENH, with support from MIREME, INP and industry stakeholders ExxonMobil, Total Mozambique LNG, TechnipFMC, FNB, Sasol, Baker Hughes, Standard Bank and G4S.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Violence Mars Mozambique Elections

October 13, 2019

The violence that led to the death of the head of a local elections observer team in Maputo, Mozambique has been described as unacceptable by the Commonwealth.

Musa Mwenye, former attorney General of Zambia ltd

The Team lead of the Commonwealth Observer group to the elections team observing elections, Musa Mwenye, who is a former attorney General of Zambia has called for a thorough investigation into the death of Anastácio Matavele in Xai-Xai, capital of Gaza province in Mozambique.

He condemned all incident of violence and encouraged all stakeholders to demonstrate unwavering commitment to peaceful and credible elections.

Mr Mwenya was speaking on arrival in Mozambique’s capital, Maputo. He said: “We convey sincere condolences to Mr Matavele’s family and friends and urge a thorough investigation into this and any other incidents of violence.

“Our mandate is to observe and evaluate the pre-election environment, polling day as well as the post-election period. We will consider the various factors impinging on the credibility of the electoral process as a whole, and report on whether it has been conducted to the national, regional, Commonwealth and international standards to which Mozambique has committed itself.”

The five-member Commonwealth Group (COG) arrived in Maputo on 10 October. It will receive briefings from election management officials, representatives of political parties, civil society groups, the police, members of the international community as well as citizens and internal observers, then deploy to selected provinces to observe the pre-election environment and the vote itself.

Shortly after the election, the Commonwealth Group will present its preliminary findings in Maputo. Its final report will be submitted to the Commonwealth Secretary-General and made available to relevant stakeholders and the public.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Largest U.S Investment In Africa Underway In Mozambique

June 21, 2019

Trump’s administration has few months to complete its tenure but Africa appears the last bait of his administration. In a landmark investment, Trump’s administration is backing the largest-ever U.S. source investment in Africa as the Houston-based Fortune 500 oil and gas independent Anadarko Petroleum Corp. invests in $20 billion Liquefied Natural Gas project in Mozambique.

The Terms Of The Deal

The project when completed would be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with a total capacity of 12.88 million tons annually.
Liquefied natural gas is natural gas that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport.
The project will support the development of the Golfinho-Atum natural gas fields located offshore in the Rovuma basis on the northern coast of Mozambique in the Indian Ocean.
According to the Mozambique government, the project will initially supply volumes of approximately 100 million cubic feet of natural gas per day for domestic sales in Mozambique and key LNG buyers in Asia and Europe.
As of year-end 2018, Anadarko had revenues exceeding $13 billion and produced nearly 1.47 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent oil and gas exploration and production companies. Last month, Anadarko agreed to be acquired by Los Angeles-based Occident in a cash-and-stock deal.

Why the US Is Getting Involved?

Although the U.S. Deputy Secretary of Commerce Karen Dunn Kelley led a delegation of U.S. government officials to witness the historic $20 billion signing ceremony by Anadarko and the government of Mozambique to construct a Liquified Natural Gas (LNG) terminal just off the coast of the southeast African nation. It appears the U.S is rather coming when China has already taken over the business landscape of the continent.

Trump administration officials said involvement in the Mozambique project and the Commerce Department-led delegation’s trip to the African nation underscores America’s commitment to expanding trade, investment and commercial ties between the two countries and the Sub-Saharan African region.

“The Trump Administration is committed to increasing trade with African nations where all can reap the benefits of new investments and economic growth,” Kelley said. “American companies and products set the standard in the international market and the historic deal signing between Anadarko Petroleum and the Government of Mozambique reaffirms the goal of achieving long term economic development throughout the region.”

Chinese President Xi Jinping recently pledged $60bn in financial aid to Africa and promised to write off debt for the country’s poorer nations. China has been Africa’s biggest trading partner over the past decade.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Afrikan Heroes

Tag: Mozambique

We Must Support Mozambique Overcome Terrorist Forces, Protect Lives, and Restore Hope

Kelechi Deca

Regional Integration at the Forefront of Mozambique’s Energy Success

Kelechi Deca

Mozambique’s LNG is the Economic Game Changer

Violence Mars Mozambique Elections

Largest U.S Investment In Africa Underway In Mozambique

The Terms Of The Deal

Why the US Is Getting Involved?

Charles Rapulu Udoh

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