The Mozambique Liquefied Natural gas project by French firm, Total SA has started its initial process of finalizing the first $15 billion finance needed for its development.
According to Total, the construction period which started in August 2019 has a goal of rewarding $2.5 billion in contracts to indigenous Mozambican firms and will be the biggest private investment in Africa.
The project located at the Rovuma Basin will have approximately 65 trillion cubic feet of recoverable natural gas with initial plans for two train project with scope to expand up to 43 million tonnes per annum.
The project requires a series of documents to be signed, a process that will take 3 days.
The entire $23 billion process will ship natural gas from Africa to the global markets and as many as 20 banks have been involved in the financing.
FDI to the continent fell 10% to $45 billion in 2019 according to the United Nations Conference on Trade and Development and expects FDI to drop between 25%- 40% in 2020.
Last month, Africa’s biggest economy, Nigeria announced plans to raise N163.32 billion ($420 million) through concessions of 10 major highways as African nations look for alternative sources of revenues during the recession caused by the COVID-19 pandemic.
IMF expects the growth of sub-Saharan’s economy to contract by 3.2% in 2020.