Mozambique is emerging as a major African energy hub, driven by vast oil and gas reserves, powerful hydropower assets, and growing renewable energy ambitions. Its energy sector today plays a key role in GDP growth and offers diverse investment opportunities—with increasing U.S. involvement.
Oil & Gas / LNG
Mozambique sits atop over 100 trillion cubic feet of natural gas in the Rovuma Basin across Areas 1 & 4. The centerpiece is the $20 billion Mozambique LNG project led by TotalEnergies (26.5% stake), alongside Eni, ExxonMobil, and Mitsui . In March 2025, the U.S. Export-Import Bank approved a ~$4.7–5 billion loan to restart operations. Mitsui confirmed ~70–80% of financing is secured . Once online, annual LNG production could reach ~13 million tonnes, transforming exports and boosting GDP.
Hydropower
Hydropower dominates Mozambique’s current electricity mix—about 95% of its 98% renewable electricity comes from dams. Cahora Bassa, the flagship plant, generates ~2,075 MW and exports much of its output to South Africa and Zimbabwe. Additional projects like Mphanda Nkuwa (1,500 MW) and expansions of Cahora Bassa are underway, bringing hydropower potential to 3 GW+. Rehabilitation efforts, including a $125 million upgrade to Cahora Bassa, supported by international lenders, aim to enhance reliability through 2050 .
Renewables (Solar, Wind, Mini‑Grids)
Mozambique is targeting 23.4 GW of renewables by 2030: 5.6 GW hydro, 4.4 GW solar, 3.6 GW wind, and 0.1 GW biomass. Current utility-scale assets include the 41 MW Metoro Solar (commissioned 2022) and the Mocuba 40 MW PV facility (since 2019). A pioneering 120 MW wind farm at Namaacha, led by U.S.-based EleQtra, is expected online in 2023. Agencies like FUNAE and donor-backed initiatives such as BRILHO are boosting rural electrification via solar mini-grids.
Economic Impact & GDP
In 2023, Mozambique saw ~5% GDP growth, largely due to extractive exports—chiefly LNG. IMF projections suggest gas revenues could quadruple GDP from its current ~$21 billion base, though “resource curse” concerns persist . Increasing renewable capacity and hydropower expansion support sustainable growth, but debt burdens and governance risks remain challenges.
U.S. Presence & Investment Opportunities
U.S. involvement spans the EXIM loan for Mozambique LNG—the largest U.S.-backed energy financing in Africa—and private investments. ExxonMobil has injected over $20 million since 2017 into local content development and training. EleQtra, a U.S. IPP, is building the first commercial wind farm. The liberalization of power markets, recent New Electricity Law (2022), and renewable energy incentives make Mozambique ripe for U.S. investments across LNG, solar, wind, storage, and transmission.
Looking Ahead
Mozambique is positioning itself as a regional energy powerhouse. For U.S. companies, the landscape offers high-growth prospects in both traditional and clean energy segments—provided they navigate security, financing, and governance hurdles. With nearly universal electrification planned by 2030, inclusive energy strategies and stronger institutional frameworks will be vital. For American investors, Mozambique represents both a generational opportunity and a test of resilience in frontier-market energy development.