The armed attacks in Cabo Delgado and the consequent temporary suspension for an indefinite period of the activities of the French multinational Total in the Moz LNG project increase the risks and uncertainties for the Mozambican economy and this situation will tend to be more serious the longer it prevails.
This situation could negatively impact the annual collection of tax revenues by about 1 percentage point of the contribution of megaprojects in total revenues, reduction of payment of non-tax revenues by about US$236.4 billion, corresponding to Total's annual payment; fall in Foreign Direct Investment (FDI); deterioration of private sector performance and impact on economic projections.
The suspension of Total's activities is also a high risk for ENH as it has been borrowing to participate in the development phase of the Moz LNG project, in particular, and of the gas projects, in general.
