Mozambique’s newly elected President Daniel Chapo has pledged not to renegotiate contracts with energy giants TotalEnergies and ExxonMobil, whose multibillion-dollar liquefied natural gas (LNG) projects are expected to transform the country’s economy.
Chapo, who assumed office on Wednesday amidst opposition protests over his contested election victory, emphasized that the government is not in a position to review terms for projects like TotalEnergies’ $20 billion development in Cabo Delgado. The project has been on hold since 2021 due to an insurgency near the site.
“These contracts are new, and operations have not yet commenced. There is no basis for reviewing them at this stage,” Chapo said in an interview.
Security and Economic Growth
Chapo affirmed that improved security in Cabo Delgado could allow construction on LNG projects to resume soon, despite ongoing sporadic insurgent attacks. Mozambican authorities are working alongside Rwandan soldiers and regional partners to address the insurgency.
The energy developments are critical for Mozambique, as they promise to boost the economy and stabilize public finances in one of Southern Africa’s most resource-rich but economically challenged nations.
On the opposition protests against his election win, which civil society groups say have resulted in over 300 deaths, Chapo advocated for dialogue as the path to resolution.
He also addressed the plight of over 1,000 Mozambicans retrieved from an illegal mine in South Africa, where a police operation cut off food and water supplies for months. Chapo acknowledged illegal mining as a shared regional challenge, adding, “It’s a tragic situation, and I feel deeply saddened.”