Mozambique LNG lands $400 million from Afreximbank
The African Export-Import Bank (Afreximbank) has committed up to $400 million in guarantees and direct lending to Total’s Mozambique LNG project.
Financing will be directed toward project development activities related to onshore gas extraction in Area 1 of the Rovuma basin, while transfer of the gas will be directed to onshore processing facilities and conversion to LNG for exports to both the region and globally.
As a result, the funding commitment aligns with the Bank’s mission to foster intra-African trade, facilitate industrialization and boost export development, with the aim of supporting the development of Mozambique’s energy industry and national economy.
“We are confident the Mozambique LNG project will create opportunities for the people of the country and drive sustainable economic growth,” said Benedict Oramah, President of Afreximbank. “We believe that the success of projects such as this will create a precedent through which other development projects in Africa can secure funding and gain international traction. We are delighted to be one of the key stakeholders involved in this project which will accelerate the rate of growth of intra-African trade.”
The guarantee receives joint backing from the Export Credit Insurance Corporation of South Africa SOC Limited, offered under the South Africa-Africa Trade and Investment Promotion Program, which seeks to promote trade and investment between South Africa and the rest of the continent.
Under its Afreximbank Guarantee Program, the Bank has implemented its ECA-Plus guarantee, in which it shares its risk with export credit agencies via co-guarantees and re-guarantees for African investment projects. By creating enhanced collaboration with export credit agencies, the Bank contributes to building financing capacity, mitigating risk and driving capital into African trade and investments.
In total, the landmark Mozambique LNG project has secured approximately $15 billion in senior debt financing, the largest foreign direct investment in Africa to date.
Africa Oil & Power (AOP) will bring global investors and policymakers in oil and gas and power together for the first-ever Mozambique Gas & Power Conference & Exhibition – under the theme ‘Leveraging LNG: Building A Prosperous Mozambique’– in partnership with the African Energy Chamber and Attitude HR.
Join us on 8-9 March 2021 in Maputo, Mozambique