Security Concerns Complicate Investment Opportunities in Mozambique

The southeast African country Mozambique presents an investment opportunity for American energy companies. But with this opportunity comes security challenges, including domestic political disputes that often turn violent, an increase in organized crime and kidnappings across the country, and potential signs of imported extremism.

In recent years, large natural gas reserves were discovered in Mozambique. The deep water Rovuma basin alone contains a potential reserve of up to 200 trillion cubic feet and is expected to yield 300 million cubic feet of gas per day over the next five years. A December 2016 report of Mozambique’s economic outlook by the consultancy Deloitte finds, “The country’s gas industry has the potential to be a major driver of long-term growth, with the IMF estimating that LNG developments could bring over US$200 billion in GDP over 20 years at 2014 prices.”