Latest News Archive

Please select Category, Year, and then Month to display items
Previous Archive
29 March 2021 | Story Prof Theo Neethling | Photo Johan Roux
Prof Theo Neethling is from the Department of Political Studies and Governance at the University of the Free State

The Cabo Delgado province in the northernmost part of the long Mozambican seaboard is now home to Africa’s three largest liquefied natural gas (LNG) projects; these projects have attracted many of the world’s major multinational energy companies, accompanied by massive LNG investments. There can be little doubt that the discovery of rich LNG reserves is a potential game changer for Mozambique’s economy and the development agenda of the country. It is potentially an opportunity for the rapid advancement of a country that currently ranks close to the bottom of the United Nation’s Human Development Index. World Bank data annually ranks Mozambique as among the poorest countries in the world.

Mozambique ‘has hit the jackpot’

Since 2011, rich LNG reserves have been discovered off the coast of Cabo Delgado in the Rovuma Basin. With the discovery of major offshore gas fields, many observers have been prompted to suggest that Mozambique, one of the poorest countries in the world, ‘has hit the jackpot’ – and recently, it has been claimed that by the mid-2020s, Mozambique could become one of the top ten LNG producers globally. Together, the gas projects are estimated to be worth $60 billion, and this could obviously revolutionise Mozambique’s economy of $15 billion.

However, despite the billions in investments by major multinational energy companies since 2012, the people of Cabo Delgado are yet to see the material benefits from these projects. One of the biggest risks for international investors in the LNG industry is the many unknowns associated with the threat posed by the militant Islamic movement, Ansar al-Sunna, which has especially been active in the Cabo Delgado province since 2017. Whereas Ansar al-Sunna, locally known as Al-Shabaab, initially advocated the ‘purification’ of Islam in Mozambique by preaching a moving away from the practices of the mystical traditions of Muslim Sufis – who are the majority of Muslims in Mozambique – and projecting Sufis as degenerate, the movement eventually made it clear that its goal was to impose Sharia law (Islamic law) in Cabo Delgado.

Since independence in 1994, the central government of Maputo has lacked a monopoly over the means of violence in its territory and its long coastline. In this context, Renamo regularly clashed with the central government in a 16-year civil war that claimed more than a million lives. Fast forward to the future – Ansar al-Sunna with its ISIS links now poses the main security threat to the Mozambican government and its armed forces.

The situation has gone from bad to worse

The escalation of violence and armed conflict since early 2020 has raised some pressing questions over the future of LNG investments, and even put the future of the LNG industry at high risk. Obviously, the foreign companies with their substantial investments feel threatened, especially at the current stage where final investment decisions have to be taken.

In recent months, the situation in Cabo Delgado has gone from bad to worse. In November 2020, dozens of people were reportedly beheaded by Islamic militants in northern Mozambique. Now the beheadings and bloodshed have spread to the town of Palma; taking the bloodshed to another level. This is not good news for the LNG industry in Mozambique, as Palma is supposed to become the manufacturing hub where hundreds of skilled workers will be located.

Amid the development of an increasingly alarming human rights situation towards the end of last year, including the killing of civilians by insurgents, the United Nations High Commissioner for Human Rights, Michelle Bachelet, has appealed for urgent measures to protect civilians in what she described as a “desperate” situation and one of “grave human rights abuses”. She also stated that more than 350 000 people have been displaced since 2018.

In conclusion, there is little doubt that Islamist insurgents have managed to increase the scale of their activities in Cabo Delgado, and that the lack of governance and a proper security response by both the Mozambican government and Southern African leaders make this a case of high political risk, which can potentially jeopardise the successful unlocking of the country’s resource wealth. Until now, the main LNG installations and sites have not been targeted or directly affected, but the security risks to these vast investments – and Mozambique’s development potential – are certainly on the increase and posing a threat to the LNG industry.

Opinion article by Prof Theo Neethling, Department of Political Studies and Governance, University of the Free State 

 


News Archive

Tough future if nothing changes in Africa
2015-02-20

 

The Department of Political Studies and Governance at the UFS recently hosted a workshop with the Osaka School for International Public Policy and the Southern African Centre for Collaboration in Peace and Security Studies.

The workshop, which was held on Thursday 12 February, had the theme of Perspectives on African Peace and Security. During workshop sessions, thoughts and views on peace and security were discussed for both African and South African circumstances. This was the fourth year of this joint workshop at the UFS.

Prof Hussein Solomon from the Department of Political Studies and Governance at the UFS shared some notes:

“In terms of South Africa, the fact that only 11% of South Africans have a post-school education holds negative prospects for us attaining a so-called ‘knowledge economy’”, says Prof Solomon.

“This also means that unemployment will continue to remain high since, in certain key areas, the South African economy is quite sophisticated, and needs a sophisticated labour force. Therefore, high unemployment translates into further social unrest, especially if one considers that youth unemployment is approaching 50%.”
 
Moving to broader issues in Africa, Solomon states that governance remains a challenge.

“There is a need to move away from Eurocentric forms of governance to more hybrid forms, implementing a mix of western forms of governance alongside more traditional forms.”

“Otherwise, the probability of conflict remains high as we look into the future. The possibility of water wars between African states is distinct.”

“Terrorism too will be with us for some time to come, with three terrorist attacks per day in Africa. Making matters worse, whether it is conflict over water or terrorist atrocities, is the African Union’s inability to resolve these issues. It simply does not have the capacity”, says Solomon.

We use cookies to make interactions with our websites and services easy and meaningful. To better understand how they are used, read more about the UFS cookie policy. By continuing to use this site you are giving us your consent to do this.

Accept