Keypoints:
- UK pulls $1.15bn LNG backing
- Africa Energy Chamber criticises decision
- Fears over energy poverty and investment
THE UK government’s decision to withdraw $1.15bn in financing for the TotalEnergies-led Mozambique LNG project has sparked criticism from African energy stakeholders, who fear the move could slow regional development at a pivotal moment for the continent’s energy security.
Announced on Monday, the withdrawal ends support provided through UK Export Finance (UKEF) and comes despite renewed momentum around the project following security improvements in northern Cabo Delgado. The Mozambique LNG development, expected to produce around thirteen million tonnes of liquefied natural gas a year, is widely regarded as one of Africa’s most significant energy ventures, with potential to strengthen domestic supply, spur industrialisation and reduce energy poverty.
UKEF said its decision reflected ‘risks’ associated with the project. However, critics argue that London’s stance aligns with a broader policy shift prioritising environmental considerations over Africa’s development needs. The move contrasts with the United States Export-Import Bank, which earlier this year voted to reapprove financing after reviewing improved conditions on the ground.
Critics say Africa’s needs overlooked
The African Energy Chamber (AEC) condemned the UK’s decision, describing it as a setback for both Mozambique and the wider continent. The Chamber argues that Western governments often apply climate-driven restrictions without recognising Africa’s pressing need for affordable and reliable energy.
NJ Ayuk, Executive Chairman of the AEC, said the withdrawal ‘betrays Africa’s right to energy security’. He added that the episode should encourage African governments and investors to prioritise domestic and regional financing models: ‘Projects like Mozambique LNG must be championed by Africans for Africans, with a focus on responsible development, job creation and the eradication of energy poverty.’
Industry observers note that Africa’s natural gas potential — estimated at around six hundred and twenty trillion cubic feet — remains underused partly because international funding decisions are shaped by political and environmental priorities outside the continent.
Economic stakes remain high
The Mozambique LNG project has been hailed by policymakers as a major development driver. Construction work alone is projected to create around five thousand direct jobs, while wider gas-processing and related industrial activity in Cabo Delgado is expected to support at least ten thousand positions by 2025.
Government revenues from LNG-linked activities increased by over twenty percent last year, and officials believe fully restoring project financing could unlock further growth in public spending, infrastructure investment and local enterprise development. A strong local content plan emphasises training opportunities and SME support for young Mozambicans entering technical fields.
TotalEnergies suspended operations in 2021 due to armed attacks in the region but lifted the force majeure earlier this year after security conditions stabilised. A revised development roadmap is now awaiting final government approval.
Calls for new financing paths
Analysts say the UK’s withdrawal highlights the need for African states to diversify their financing sources and strengthen regional cooperation to protect strategic energy assets. The AEC warns that repeated delays and withdrawals by Western institutions risk slowing Africa’s industrial ambitions at a time when global energy demand remains high.
For Mozambique, partners argue that continued progress on LNG development will be critical to long-term economic transformation. Supporters say the project can strengthen energy sovereignty, reinforce industrial capacity and help communities transition from energy poverty toward sustainable growth.
