Natural gas is said to be Mozambique's future, but the first gas project – Pande Temane – has generated virtually no government revenue. By removing the sharing from the petroleum agreement and agreeing to an abusive pricing formula, the government gave away most of its share at the start. Aware of these unfair terms, MIREM, the IMF and the World Bank still forecast substantial government revenues that have never arrived. The annual sale value of Mozambique gas in South Africa is now more than $800 million per year while total government revenue over the first eight years of the project is less than $50m.
Facebook comment box
