Mozambique’s dollar-denominated bonds due in 2031 rose by more than two cents on the dollar after TotalEnergies and its partners lifted force majeure on the $20 billion Mozambique LNG project, as reported by Reuters. The move sparked renewed investor optimism, reflecting expectations that the long-delayed project could soon resume.
The bonds were bid at about 89.38 cents per dollar, with yields easing to 12.53 percent, marking their lowest level in nearly two weeks. Analysts said the gains underscore market confidence in Mozambique’s ability to restore progress on one of Africa’s largest energy investments and improve its fiscal outlook, according to figures cited by Reuters.
TotalEnergies, the project’s operator, said construction can only restart once Mozambique’s Council of Ministers approves an updated budget and schedule. The project, which is around 40 percent complete, remains on hold pending final clearance amid continued security concerns in the Cabo Delgado region, as highlighted by Reuters.
Analysts at Morgan Stanley described the development as a “critical inflection point” for Mozambique’s economy, adding that while near-term challenges remain, the LNG project’s revival could significantly boost foreign exchange earnings and long-term growth prospects.
