Mozambique: Natural gas export revenue rises by 33% in first half of 2024

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Mozambique: Natural gas export revenue rises by 33% in first half of 2024

2:24 CAT | 29 Nov 2024

FILE - For illustration purposes only. [File photo: Eni]

Revenue from the export of natural gas extracted in Mozambique reached US$901 million in the first half of this year, growth of 33% compared to the same period in 2023, according to the Semi-annual Balance of Payment and International Investment Position Report published by the central bank.

The report indicates that “the increase in natural gas revenues is explained by the increase in exported volume, associated with the start of exploitation and export of gas from area 4 of the Rovuma Basin, in a context in which, on the international market, the average price has fallen 28%”.

At the same time, there was a record growth in electricity revenues from US$68 million to US$349 million in the first half of 2023.

The document points to a 24% growth in the energy sector, resulting from increased production and tariff adjustments implemented by the exporting company for its main customers in the second half of 2023 and early 2024.

Contrary to the growth indicated above, there was poor performance in some products, such as, for example, mineral coal, which earned the country US$1,025 million, 19.3% less compared to the same period in 2023. The decrease “was due to , mainly, due to the 32% drop in the average price on the international market”, says the document.

Other products that had negative performance during the first half of the year were aluminium and heavy sands.

South Africa main source of Mozambican imports

In the period under analysis, the import bill for goods fell by 2.6%, standing at US$4,210.3 million, but South Africa was the main origin of Mozambican imports, accounting for 24.6% (US$1,034.6 million).

The main products that Mozambique acquired from South Africa include electricity, vehicles for transporting goods, iron bars and corn.

China is the second country that sold the most goods and services to Mozambique, with a weight of 16.2%.

The main products that Mozambique acquired from China include tractors, pesticides, heavy machinery and vehicles for transporting goods.

Singapore, India and the United Arab Emirates close the list of countries that sold the most goods and services to Mozambique during the first six months of 2024, with 20.1% of imports, valued at US$562.5 million.

Country’s net debt position

Data from the Semi-annual Report on the Balance of Payments and International Investment Position indicate that Mozambique’s net debt position vis-à-vis the outside world worsened by US$257.1 million at the end of the second quarter of 2024 in relation to the first quarter of the current year, the balance standing at US$71,524.9 million.

Data published by the Bank of Mozambique indicate that “the Mozambican economy reduced the demand for financial resources from non-residents to finance their consumption and investment needs by 12.5%, with the combined balance of current and capital accounts standing at US$1,244.2 million”.

Furthermore, the negative result is due, according to the financial institution, to the contracting of a current deficit of 14.2%, set at US$1305.8 million and, on the other hand, to the decrease in the surplus balance of the capital account by 39.0%.

The document also says that “economic transactions between Mozambique and the rest of the world resulted in a global surplus balance of US%112 million, which contributed to the increase in the monetary authority’s reserve assets”. Meanwhile, gross international reserves stood at US$3,705.4 million, enough to cover 3.1 and 4.9 months of imports of goods and services respectively.

Source: O País