The armed orders in Cabo Delgado and the consequent temporary suspension for an indefinite period of time of the activities of the French multinational Total in the Moz LNG project raise the risks and uncertainties for the Mozambican economy and this situation will tend to be more serious the longer it prevails.
This situation can have a negative impact on the annual collection of tax revenues by about 1 percentage point of the contribution of megaprojects to total revenues, a reduction in the payment of non-tax revenues by approximately US $ 236.4 million, corresponding to the annual payment of the Total; drop in Foreign Direct Investment (FDI); deterioration in the performance of the private sector and impact on economic projections.
The suspension of Total’s activities still constitutes a high risk for ENL since it has been taking on debt to participate in the development phase of the Moz LNG project, in particular, and gas projects in general.
