Mozambique could see its annual economy grow by as much as $11 billion (R183 billion) through the development of its natural-gas deposits, according to a report by Standard Bank Group and Conningarth Economists. The proposed Exxon Mobil Rovuma liquefied natural gas project is expected to boost the country’s economic growth to 4.1% once production begins in 2030, potentially adding $81 billion to the nation’s sovereign wealth fund by 2056.
How Will Natural Gas Impact Mozambique’s Economy?
The development of Mozambique’s gas sector is projected to significantly alter the financial trajectory of the world’s fifth-poorest nation. According to Standard Bank Group, the Rovuma project could increase household incomes by 21%. As the country works to become the world’s fourth-largest supplier of gas, these revenues are expected to play a vital role in reducing sovereign debt and boosting public investment.
Bernardo Aparício, Chief Executive Officer of Standard Bank Mozambique, noted that fiscal revenues from these projects are essential for driving long-term economic growth. Currently, the country is still recovering from a civil war that concluded in 1992, and according to the International Monetary Fund, Mozambique’s GDP stood at less than $23 billion in 2025.
The Rovuma project, which requires an estimated $30 billion investment, is positioned to transform a nation where the 2025 GDP was less than $23 billion.
What Is the Status of Major LNG Projects in the Region?
The gas landscape in northern Cabo Delgado is crowded with multi-billion dollar initiatives. The Exxon Mobil Rovuma project, situated approximately 40km off the coast, is one of three major developments shaping the region:
- Exxon Mobil Rovuma: A $30 billion project slated for production in 2030.
- TotalEnergies: A $20 billion project that was previously derailed by an Islamic State-linked insurgency in 2021 and has recently restarted.
- Eni SpA: A $7.2 billion floating LNG project.
Why Does the Sovereign Wealth Fund Matter?
The establishment of a sovereign wealth fund is a strategic move to manage the influx of capital from gas exports. Standard Bank Group projects that the Exxon Mobil initiative alone will contribute $81 billion to this fund by 2056. This mechanism is designed to ensure that the wealth generated from natural resources provides a buffer for the economy and supports future public spending beyond the initial lifecycle of the gas projects.
Frequently Asked Questions
When is the Exxon Mobil Rovuma project expected to start?
According to the report by Standard Bank Group and Conningarth Economists, the project is slated to begin production in 2030.
How much is the Rovuma project expected to add to the sovereign wealth fund?
The project is projected to add $81 billion to Mozambique’s sovereign wealth fund by 2056.
What is the estimated total investment required for the Rovuma project?
The project requires an estimated investment of approximately $30 billion.
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