Over the past three years, huge offshore natural gas reserves have been
discovered in the region of Cabo Delgado, Mozambique. These unexpected
resources are a great opportunity for economic and social development, but they
are also shaking up this country which now has to deal with greedy foreign
multinationals and opportunistic European immigrants. How will this still weak
economy face these sudden changes?
Jackpot in the oceanic basin of Rovuma, Mozambique.
Since 2010,
more than 3,700 billions of cubic metres of exploitable gas have been found!
Once liquefied and sent abroad, it could take this African country to the third
place of liquified natural gas exporting countries.
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| potential Mozambican gas exportations |
This gift from the ground is a godsend
for this nation ranked in 2012 at the 185th place out of 187 for the
level of development, according to the United Nations. Indeed, this former Portuguese colony had
a tough past - it became independent in 1975 and was the scene of a terrible
civil war up to 1992 which was a major factor in its late development.
Today,
Mozambique has political stability, fast economic growth and great economic and
social development perspectives. Nevertheless, taking advantage of this
situation requires the management of human, technical and financial resources
without a hitch.
The bet is risky, but the whole world seems to be willing to play.
Of course, global
investors rely on being part of this certainly profitable adventure. As a true
“gas” rush, Western gas or logistic companies have already sent a significant
number of employees. However, these companies do not hire local
skilled-professional because there are not many of them, they are expensive and
speak poor English.
Besides, the
lack of services available to this new population of expatriates is a major
issue. New construction sites are starting everyday in the north of this
country where everything is lacking, from road network to shoe shops. More and
more Europeans, especially Italian and Portuguese, decide to leave their native
country so as to own a shop in Mozambique in order to start a new life, far
from the economic crisis.
Even if the
government has set immigration restrictions to slow down this phenomenon, most
Mozambicans are only spectators of Mozambique's great transformation and fear
that some people will behave as if they were back home.
Mozambique has now all cards in hands, but it will have to play a
careful game.
There are 25
million Mozambicans. Half of them live under the poverty line, two thirds of
them do not have electricity supply and the limited budget of Mozambique is
still composed of 30% of foreign assistance. The necessity of sharing the wealth
of its own ground with Mozambicans and avoiding the domination of foreign
multinationals is a priority for the President Guebuza who invests as much as
possible in exploitation, by making public companies participate in the
project.
Moreover, he
refuses to fall in the trap of becoming a rentier State, like Angola or
Nigeria, and considers it essential to diversify Mozambican economy, improving
agriculture and industry so as to ensure a long-term development which is going
to provide social improvements through education and employability.
In any case, Mozambique
will have to wait 2025 to get the first incomes from its liquified natural gas.
Violette P.
Sources : Le Point, Les Echos,
Mzlng.com
I have found your article very interesting, but by the way, I am a little bit dubious concerning your dualistic vision. Indeed, I have the feeling you see this sudden economic and social opportunity in very black-and-white terms. On the one hand, the poor Mozambicans trying to have their piece of the pie, and on the other hand, the naughty Europeans and multinationals doing their best not to share with the local population. But it seems to be an over-simplistic analysis, for the African leaders are nowadays well up on the value of their resources and they know how to find the best agreement with the aim of making money and improving infrastructure in their country. So I think the Mozambicans will not be excluded from this gas rush. But it does not mean that the European multinationals will not take the biggest part of the pie...
ReplyDeletePaul-Louis H.
This comment has been removed by a blog administrator.
DeleteI understand your comment. My point was not at all to create a “two-opposite-side” effect and I am sorry you understood it this way. But you also oversimplify the situation in your comment, don't you? First, I have never said that the Europeans are “naughty”, or at least, that is not what I meant. They take advantage of the situation and they are right to do it because it is a profitable opportunity for companies and an unexpected solution for the individuals who suffered the economic crisis in Europe. And if the local population does not really participate in it, it is due to the fact that it doesn't have the sufficient means and knowledge to do so. But you can't deny that, as the things currently are, the competition is “unfair”, because we did not really give Mozambicans time to react before being the new Western attraction. That is why I believe that everything will depend on the ability of the government to manage their social and economic investments before 2025 so that Mozambicans can be competitive enough not to be prejudiced.
DeleteActually there were several riots recently in Mozambique and the elections, such as in various developing countries, are not totally free yet. Besides, I hope it will not happen as in most of developing countries based on natural resources. Most of the time, this kind of situation involves a poor wealth distribution and infrastructure built in the multinational's interests while the population still have not access to decent accomodation and living conditions. Camille D
ReplyDeleteThis is exactly the trap Mozambique has to avoid. And the more our economy is globalized, the more it is going to be risky. We can hope that Mozambique won't repeat the mistakes of other developing countries which knew such a change in their international economic role. Besides, the government seems to be on the right track. We can also bet on the rising social conscientiousness of the Western actors - even if I am a little bit dubious about it.
DeleteViolette P.