TotalEnergies to fund development projects in Mozambique

French multinational TotalEnergies is to provide US$10 million for development projects in Mozambique’s conflict-hit Cabo Delgado province through the Agency for the Integrated Development of the North (ADIN), the agency said on Monday.

Lusa News in Mozambique reports that ADIN said the funding was intended to support government efforts to stabilise communities and improve living conditions.

The French energy company indicated that the agreement aimed to expand ongoing interventions and ensure residents of Palma and Mocímboa da Praia continued to benefit from opportunities linked to the Mozambique LNG project, which has been suspended for four years due to insecurity.

According to ADIN, the programme includes investment in paved roads and other basic infrastructure, as well as support for agricultural cooperatives to increase production, processing and market access.

The agency said the initiatives were expected to boost youth employment, promote sustainable management of environmental areas and strengthen community resilience against climate shocks.

The announcement follows a government statement in July that conditions were in place for the resumption of the $20 billion liquid natural gas exploration project in Cabo Delgado, after a meeting between President Daniel Chapo and TotalEnergies chief executive, Patrick Pouyanné.

Subcontractors have been instructed to prepare for a possible restart on the Afungi Peninsula.

TotalEnergies holds a 26.5% stake in the Area 1 consortium developing the LNG plant near Palma, alongside Mozambican partners and Japan’s Mitsui, which owns 20%.

Mozambique has three approved projects to exploit natural gas reserves in the Rovuma Basin, among the world’s largest.

An insurgency linked to groups associated with Islamic State has affected Cabo Delgado since 2017, displacing more than one million people. The Africa Center for Strategic Studies estimates that the conflict caused 349 deaths in 2024.

Source: Mozambican news agency