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Soldiers from the Rwandan security forces are seen near the Afungi natural gas site in Mozambique on Sept. 22, 2021.
Viewpoint: Mozambique holds elections amid renewed hopes for LNG projects
Mozambicans will head to the polls on Wednesday, Oct. 9, amid improving prospects for ending an insurgency in the North of the country and completing several lucrative natural gas projects. Frelimo, which has ruled Mozambique for most of the period since it gained independence from Portugal in 1975, is expected to comfortably win the parliamentary and presidential elections.
We spoke with Eurasia Group expert Ziyanda Stuurman to learn what concerns are animating voters and how the next government will deal with the country’s challenges.
What are the main issues in these elections?
As in many other countries, the cost of living in Mozambique has really gone up in recent years. In the aftermath of the pandemic, inflation peaked in September 2022 and has eased since then, but prices and borrowing costs have remained high. Many people have struggled to get access to locally produced food, an issue that has been exacerbated by several cyclones and hurricanes. Moreover, the country was forced to seek assistance from the IMF in 2022 and agreed to a program that required it to slash its public wage bill, resulting in deep salary and benefit cuts for doctors, teachers, and other public employees.
How about the insurgency in the North – has that factored into the campaign?
I would say the worst of the insurgency in Cabo Delgado is probably behind us, after peaking between 2017 and 2019. With the assistance of foreign troops sent by several neighboring countries, the government has made strides in stabilizing the situation, and the candidates for president are now talking about what they would do to put an end to the insurgency. The region is the site of several large LNG projects that have the potential to turbocharge the Mozambican economy, but that were halted by their foreign operators when the fighting came too close in 2021. The average Mozambican wants to see the benefits from these projects, which have been talked about for their potential to catalyze growth for at least a decade.
Frelimo appears likely to hold on to power – how do you explain its enduring dominance?
Following a period of civil war from 1977 to 1992, Frelimo won the country’s first-ever democratic elections in 1994 in a fairly close contest with the opposition group Renamo. Since then, however, Renamo has splintered, and no new party has emerged capable of strongly challenging Frelimo. The ruling party has been able to acquire decades of governing experience that have conferred a strong incumbency advantage – an advantage that it has leaned into in undemocratic ways. It has been credibly accused, especially in more recent election cycles, of manipulating election results.
What will be the most important tasks for the next government?
Ending the insurgency and boosting the economy. Bringing long-lasting peace to Cabo Delgado is important not just for the resumption of the gas projects, but for the socio-economic development of what is probably the country’s poorest region. Daniel Chapo, Frelimo’s presidential candidate, has promised to enter peace talks with the remaining insurgents, who are thought to number 300 at most, down from a high of 2000 at the peak of the conflict. On the economic front, as the country waits for the new gas projects to come online, it will need to stimulate investment in the country’s main economic sectors – agriculture, mining, and light manufacturing.
So, who are these insurgents, and why have they been so difficult to root out?
It’s kind of a mixed bag. Some of them are former leaders and members of separatist movements in Tanzania, some are connected with the Islamist group Al-Shabab that was active in Somalia, and the majority are disaffected locals who feel excluded from public services and economic development. They have financed their operations with illicit activities such as kidnappings for ransom, particularly in the south of the country and the capital Maputo. They’ve been difficult to root out because the terrain in Cabo Delgado and its neighboring provinces is heavily forested and difficult to penetrate for the government forces, who lacked the necessary capacity to effectively fight in these conditions. In mid-2021, a group of neighboring countries, including South Africa and Rwanda, dispatched several thousand troops to support the Mozambican forces. The foreign mission has been scaled back this year but many of the troops remain.
What is the status now of the LNG projects in Cabo Delgado and what is their importance for the country’s development?
The two biggest projects are run by Total and Exxon, and Total CEO Patrick Pouyanné has been quite vocal recently about the company’s commitment to its Cabo Delgado venture. He is planning to visit Mozambique at the end of the month to meet with the next president, so it really sounds like Total is on the cusp of announcing a resumption of construction, probably by early 2025 at the latest. Still, it would take a couple of years before the facilities are ready to start producing gas. The situation of the Exxon project is somewhat different. I expect it will also resume, though it might be scaled back somewhat. The two projects have the potential to generate an estimated $50 billion in combined revenue over their lifetimes, which would be transformational for a country whose annual economic output is currently about $16 billion.
Edited by Jonathan House, Senior Editor at Eurasia Group.