Mozambique’s only eurobond surged on Monday after TotalEnergies announced the lifting of force majeure on its multibillion-dollar liquefied natural gas (LNG) project, signaling a long-awaited resumption of construction following years of security-related delays.
The country’s dollar-denominated bonds due in 2031 rose by more than 2 cents, with bids reaching 89.38 cents on the dollar by 11:12 GMT, pushing the yield down to 12.53%, its lowest level in two weeks.
The decision marks a major boost for Mozambique’s economic outlook, as the LNG project—estimated to produce 13 million metric tons per year once operational—has the potential to significantly enhance the country’s export revenue and overall fiscal stability. The facility, located in the Cabo Delgado province, remains about 40% complete, though the region continues to face security challenges despite Rwanda-backed military operations.
Analysts at Morgan Stanley, Neville Mandimika and Simon Waever, noted that Mozambique’s “near-term fragility and long-term potential could not be more striking,” referencing ongoing financing constraints and political tensions following last year’s election unrest.
“If the country can maintain stability and implement prudent reforms, the LNG boom expected in 2029–2030 could create fiscal space, strengthen the balance of payments, and support broad-based growth,” they added.
The project’s revival is viewed as a pivotal moment for Mozambique, whose vast natural gas reserves could transform it into one of Africa’s leading energy exporters by the end of the decade.
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Source:Africa Publicity
