The project, led by TotalEnergies, was poised to make Mozambique one of the world’s top three natural gas producers. NJ Ayuk, an African Energy Analyst, described the move as “economically and financially damaging” and criticised its potential effects on regional energy security.
He highlighted that the financing represented 10% of the project’s total structure, noting that withdrawing support at this stage sends a troubling message about the reliability of Western funding for African development.
Ayuk argued that the decision contradicted commitments made by global leaders at the recent G20 summit in SA, which emphasised African industrialisation and prosperity.
“One week after the G20, the UK pulls back financing for a project that could transform Mozambique’s energy sector. It is alarming,” he said, warning that the move could undermine confidence in international support for African growth.
TotalEnergies, however, has been praised for its resilience and engagement with local communities. Ayuk noted that the company is exploring alternative solutions, including equity adjustments among shareholders, and stressed that the project’s environmental credentials remain strong. Mozambique’s gas is expected to be among the low-carbon LNG globally, he added.
The analyst criticised the UK government’s justification, citing a human rights report produced without an on-the-ground investigation in Mozambique. In contrast, the United States Exim Bank conducted similar due diligence and approved $4.5 billion in financing, highlighting inconsistencies in Western approaches to African energy projects.
Looking ahead, Ayuk urged Mozambique to engage African and Asian financial institutions, including the forthcoming African Energy Bank, to bridge funding gaps. The initiative, he said, would mobilise private capital and pension funds to support Africa-led industrialisation, reducing dependence on Western financiers whose decisions may reflect external political or environmental agendas.
“TotalEnergies is a world-class operator. This is a speed bump, not a roadblock,” Ayuk concluded, emphasising that African nations must build resilient financial mechanisms to secure their development and energy sovereignty.
–ChannelAfrica–
