Another African country is making an aggressive push to become a major oil player
Mozambique is strategically investing in its oil and gas sector to drive economic growth and enhance energy independence.
Petromoc has partnered with Nigeria's Aiteo to establish Mozambique's first oil refinery, aiming to reduce imports and boost production.
A Mozambique-Zambia joint gas pipeline project aims to enhance regional energy security and promote economic cooperation.
Strategic infrastructure initiatives, international alliances, and regulatory reforms are helping to establish the country as a vital energy center in southern Africa.
Partnerships with other oil-producing African countries
As recently reported, Mozambique's state-owned company, Petromoc, following in the footsteps of Aliko Dangote, has decided to establish an oil refinery.
This would make it the country's first oil refinery.
To this effect, Petromac signed a memorandum of understanding with Nigeria's Aiteo.
'This project, to be implemented over a maximum period of 24 months, will increase storage capacity by 160,000 metric tonnes for liquid fuels and 24,000 metric tonnes for Liquefied Petroleum Gas,' the President of Mozambique, Daniel Chapo.
The president also emphasized the project's potential for lowering petroleum imports, creating jobs, and increasing the country's GDP.
'The refinery will produce gasoline, diesel, naphtha, and Jet A1 with the ambition of conquering the regional market,' he added.
The refinery intends to fulfill domestic gasoline demand while also facilitating exports to neighboring nations, and construction is expected to be finished within two years.
Similar to Nigeria prior to its present refining capability, Mozambique is said to import the most refined oil products, with India being the main provider, followed by Saudi Arabia, Bahrain, Malaysia, and the United Arab Emirates, as seen in the Punch.
Additionally, Mozambique and Zambia have agreed to build a $1.5 billion gas pipeline. This pipeline will carry 3.5 million tons of petroleum products from Mozambique's port city of Beira to Ndola, Zambia.
The project involves the building of storage facilities in both nations and is projected to be completed within four years. This effort seeks to increase energy security and promote economic cooperation between the two countries.
Other energy initiatives
The board of the United States Export-Import Bank in March, 2025, authorized a roughly $5 billion loan for a long-stalled LNG project in Mozambique, a significant step toward resuming development headed by French oil giant TotalEnergies.
TotalEnergies initially projected that the Mozambique LNG project will be operational by 2029. However, earlier this year, the corporation announced that this schedule is no longer realistic.
In September, reports showed that the Bank was considering financing a liquefied natural gas (LNG) project led by Eni SpA off Mozambique's coast.
This was coming years after backing an onshore LNG facility that has faced delays due to security concerns and opposition from environmental groups.
Estevão Pale, Mozambique's Energy Minister, stressed the project's importance for global energy security and the country's economic development. TotalEnergies' CEO, Patrick Pouyanné, reiterated the company's commitment to restarting the project, which is slated to start producing gas in 2029.
Africa's oil-producing capacity
Africa has a varied spectrum of oil-producing countries, including Nigeria, Angola, Algeria, Libya, and Egypt are the largest producers, with each producing hundreds of thousands of barrels per day.
Other major producers, according to OPEC and the United States Energy Information Administration (EIA), are the Republic of the Congo, Gabon, Equatorial Guinea, South Sudan, Ghana, Cameroon, Chad, and Tunisia.
Very recently, Rwanda dropped its name in the hat after officially announcing its first oil discovery, identifying 13 reservoirs within Lake Kivu, a natural border with the Democratic Republic of Congo.
Lake Kivu
Currently, Rwanda imports all its petroleum product requirements due to the absence of local production.
However, with this recent discovery, the country is poised to join the ranks of Africa's oil-producing nations, alongside major players like Algeria, Nigeria, and Egypt.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
an hour ago
- Bloomberg
Graphite Producer Syrah Resumes Shipments From Mozambique Mine
Australian graphite miner Syrah Resources Ltd. is resuming shipments from Mozambique after halting deliveries due to post-election violence in the southeast African nation. The company, supported by the US International Development Finance Corp., said it restarted production at its Balama graphite mine last month and is now preparing shipments, according to a Wednesday statement. One cargo of the battery material is being loaded at Pemba port, and another is planned before the end of September, the firm said.
Business Insider
2 hours ago
- Business Insider
5 Insights from Swiss-African Business Day 2025
— The 2025 edition of the Swiss-African Business Day (SABD25), the indispensable annual event platform for advancing business and trade between Switzerland and Africa, took place in Geneva this year, gathering over 350 participants from more than 30 countries. Drawing from a rich programme including six sector-specific breakout sessions, two keynote sessions, a panel discussion, and a headline conversation with Afreximbank President Prof. Benedict Oramah and WTO Director-General Dr. Ngozi Okonjo-Iweala, here are five key takeaways from the event: 1. National Business Bodies Drive Trade Outcomes National private sector organisations (NPSOs) serve as key connectors between the business and government sectors. They help influence policies on taxation, trade, and infrastructure, while also encouraging the adoption of tools like the Pan-African Payment and Settlement System (PAPSS) to ease cross-border trade. Organisations such as Chambers of commerce and industry associations are vital in helping SMEs understand and take advantage of opportunities available under the African Continental Free Trade Area (AfCFTA). 2. Embed Swiss Value Chains in African Markets Swiss companies have the opportunity to localise more of their operations in Africa, building infrastructure, creating jobs, and deepening supply chains. Importantly, this strategy is not framed as aid, but as a wise business investment: investing in long-term partnerships that deliver both commercial and social returns. 3. Infrastructure Needs Smart, Sustainable Funding According to a recent study by the Africa-Europe Foundation and the African Union Development Agency, in partnership with the African Climate Foundation (ACF), Africa requires $170 billion annually in infrastructure investment. NPSOs can turn this figure into action by working with members to identify and deliver bankable projects. Innovative financing solutions will be crucial in addressing the continent's vast infrastructure needs. Despite the current geopolitical shifts, ESG metrics will remain central to assessing the impact of infrastructure projects, which are long-term efforts that extend beyond political cycles. 4. Vocational Training is a Business Investment Across key African markets, numerous companies and organisations are running and tailoring Technical Vocational and Education Training (TVET) programs, inspired by the Swiss dual education model with its strong private sector involvement, to address the skills gap in their local contexts. From hospitality training to engineering scholarships, companies are aligning education with market needs. TVET programs supported by Swiss public-private partnerships are preparing a generation of job-ready talent. 5. Health Partnerships Must Go Beyond Aid In the face of the current unprecedented transformation of the global healthcare landscape, speakers agreed that, despite the challenges of uncertainty surrounding these shifts, new opportunities are emerging for collaboration between the African continent and Switzerland. Speakers reiterated that this moment calls for agile coalitions and a business-driven approach to healthcare funding in Africa through a new model—rooted in sustainable investment and built on partnership rather than aid. Speakers also highlighted the potential for stronger cooperation between Swiss and African partners in research, diagnostics, and health systems development with examples such as the African Centre for Medical Excellence in Nigeria illustrating the scale of ambition.
Business Insider
2 hours ago
- Business Insider
Africa to be hit hard as UK slashes foreign aid
The UK government has unveiled details of its planned 40% reduction in foreign aid, with bilateral support for children's education and women's health in Africa among the hardest hit. The UK government announced a 40% reduction in its foreign aid budget, significantly affecting African education and health initiatives. Allocations for corruption, media freedom, trade, and economic security programs faced notable cutbacks, along with the removal of several climate-focused projects. Foreign aid spending cuts are largely targeted toward Africa and the Middle East, with Ethiopia, Sierra Leone, Nigeria, and Zimbabwe impacted the most. The UK government has unveiled details of its planned 40% reduction in foreign aid, with bilateral support for children's education and women's health in Africa among the hardest hit. The new funding allocations revealed significant cuts to programs targeting corruption, media freedom, trade, and economic security, while several climate-related initiatives were eliminated. According to the government's assessment, this year's education spending reductions are expected to impact Ethiopia, Sierra Leone, Nigeria, and Zimbabwe. Overall, the cuts will hit Africa and the Middle East the hardest. The cuts are part of a broader strategy to boost defence spending to 2.5% of gross domestic product, following pressure from the United States. Foreign Secretary David Cameron previously announced the aid budget would fall from 0.5% to 0.3% of national income. Multilateral bodies spared for now While multilateral aid to bodies like the World Bank and Gavi, the Vaccine Alliance, will be protected, direct funding to individual countries, especially in Africa, will see major reductions. The Foreign Office said underperforming multilateral organisations could face future cuts and acknowledged that aid to certain unnamed countries would drop. However, funding for the International Development Association (IDA), the World Bank's fund for low-income countries, will remain intact, with the UK committing £1.98 billion over three years.
