France, US-backed gas megaprojects fuel $5.6 billion FDI inflow in Africa's emerging LNG powerhouse
Mozambique recorded a sharp rise in foreign direct investment (FDI) in 2025, highlighting the growing importance of the southern African nation in the global liquefied natural gas (LNG) market as major Western-backed energy projects gain momentum.
Black News 
Mozambique recorded a sharp rise in foreign direct investment (FDI) in 2025, highlighting the growing importance of the southern African nation in the global liquefied natural gas (LNG) market as major Western-backed energy projects gain momentum.
- Mozambique saw a 60.2% rise in foreign direct investment in 2025, reaching $5.6 billion, mainly due to large gas projects in the Rovuma Basin.
- Major LNG projects led by TotalEnergies and ExxonMobil in northern Mozambique anchor the country's ambitions as a leading regional gas hub.
- The extractive industry, especially oil and gas, accounted for over 91% of total FDI, absorbing $5.2 billion and increasing 68.2% from 2024.
- Government forecasts expect FDI to reach $5.8 billion in 2026, supporting Mozambique's strategic role in global LNG markets.
According to new data released by the Bank of Mozambique, FDI inflows surged by 60.2% to $5.6 billion in 2025, largely driven by large-scale gas developments in the Rovuma Basin and a broader recovery in the extractive sector.
The central bank said foreign capital inflows continued to be dominated by so-called Major Projects, particularly hydrocarbon exploration activities concentrated in northern Mozambique, alongside renewed activity in coal and heavy mineral sands.
“The growing trend in FDI from MP, observed in recent years, is primarily driven by the increased inflow of capital associated with oil and gas industry projects,” the report stated.
The extractive industry absorbed $5.2 billion in investment during the year, accounting for more than 91% of total FDI inflows and marking a 68.2% increase compared to 2024.
Rovuma Basin projects anchor Mozambique’s LNG ambitions
Mozambique has increasingly positioned itself as one of Africa’s most promising emerging LNG hubs due to the vast offshore natural gas reserves discovered in the Rovuma Basin, considered among the largest globally in recent decades.
Among the most closely watched projects are the multibillion-dollar LNG developments led by TotalEnergies and ExxonMobil in Afungi, northern Mozambique.
The combined value of the projects is estimated at around $30 billion, although both are still awaiting final investment decisions following years of security concerns in Cabo Delgado province.
Mozambique’s LNG sector has already begun exporting gas through the Coral Sul floating LNG facility operated by Eni, which started production in 2022 with a capacity of roughly seven million tons annually.
Eni is also planning the Coral Norte platform, a proposed $7.2 billion expansion project expected to begin operations from 2028.
Government projections suggest foreign investment could climb further to $5.8 billion in 2026, reinforcing Mozambique’s growing status as a strategic LNG frontier for both Western energy companies and global gas markets.
