JOHANNESBURG, June 8 – Mozambique could expand its economy by as much as $11 billion annually, create tens of thousands of jobs and generate approximately $4 billion in yearly fiscal revenue through the development of its vast natural gas resources, according to a new report by Standard Bank Group.
The report, produced in partnership with consultancy firm Conningarth Economists, highlights the transformative potential of Mozambique’s liquefied natural gas (LNG) sector as major projects move closer to production.
According to the study, the proposed Exxon Mobil Corporation Rovuma LNG project could become a major catalyst for long-term economic growth when production begins, currently expected around 2030.
The project is forecast to raise Mozambique’s economic growth rate to approximately 4.1%, while generating substantial revenue flows that could support development spending and strengthen public finances.
One of the report’s most significant projections is the potential accumulation of about $81 billion in Mozambique’s sovereign wealth fund by 2056, reflecting the long-term fiscal benefits of sustained gas production and exports.
Mozambique possesses some of Africa’s largest natural gas reserves, particularly in the Rovuma Basin offshore region, which has attracted billions of dollars in investment from international energy companies over the past decade.
The development of these resources is widely viewed as a critical opportunity for the southeastern African nation to accelerate industrialization, improve infrastructure, create employment opportunities and reduce poverty.
The report suggests that successful implementation of major LNG projects could generate significant multiplier effects across the wider economy, supporting growth in sectors such as construction, logistics, transportation, services and manufacturing.
In addition to economic expansion, increased government revenues from natural gas production could provide additional resources for public investment in infrastructure, healthcare, education and social development programmes.
Mozambique remains one of the world’s poorest countries despite its abundant natural resources, and policymakers have increasingly positioned the gas sector as a key pillar of the country’s long-term economic transformation strategy.
The projections come as international energy companies continue advancing multi-billion-dollar LNG developments in the country, with investors closely monitoring regulatory developments, security conditions and global energy demand trends.
If successfully executed, the report suggests Mozambique’s natural gas industry could become one of Africa’s most significant energy-driven growth stories over the coming decades.
