Fitch Solutions places Mozambique 3rd on risk index

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Fitch Solutions places Mozambique 3rd on risk index

3:34 CAT | 08 Jan 2019

in file CoM

Fitch Solutions today placed Mozambique in third place in sub-Saharan Africa in the category of a better relationship between risk and reward of investments due to its good prospects of exploration for natural gas.

“Mozambique is now in third place in a regional list of 14 countries within the sub-Saharan Africa region in the index that measures the relationship between risk and reward of investments, ranking 23rd in the global list of 68 countries,” reads a note from Fitch Solutions, a consultancy company owned by the same entity that also has the rating agency, Fitch.

In the analysis sent to investors accessed Lusa, analysts at Fitch Solutions state that “this good position reflects the positive outlook for the natural gas exploration in Mozambique, based mainly on the good results in gas reserves and in the growth of hydrocarbon production, in which the country is notably above the regional average”.

It adds that “Mozambique’s good position in the index is also supported by the positive competitive landscape and limited state intervention in the oil and gas sector”.

Recalling the latest developments in the sector and the approximation of the Final Decisions of Investments by some of the world’s leading gas companies, Fitch Solutions says it anticipates “a huge increase in the production capacity of liquefied natural gas, which will ensure the position of the country as one of the world’s largest producers in this industry and sustain the growth of capital expenditures in sub-Saharan Africa” over the next decade.

Source: Lusa