South Africa, not Mozambique, to industrialize with Mozambican gas – Hanlon

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South Africa, not Mozambique, to industrialize with Mozambican gas – Hanlon

8:17 CAT | 19 May 2016

Further Africa (File photo)

South Africa is already planning to use Mozambican gas as the basis of plastics, fertilizer and ceramics industries, according to Engineering News (17 May). In our report last year Gas for development or just for money? () we argued that gas would be an excellent basis for industrialization in Mozambique, producing fertilizer, chemicals and plastics. This could create thousands of jobs in related industries. But there was no interest. Mozambique has opted for quick returns by selling the gas as Liquefied Natural Gas (LNG) or through the Chipande pipeline to South Africa – yet again simply selling raw materials without value added.

The South African Department of Trade and Industry (DTI) has devised a plan for gas industrialisation intended to grow the economy and create more jobs, Engineering News reports. The plan is to first rely on imports of LNG (probably from Mozambique) to kick start the industrial development, with hopes of large-scale imports of gas once infrastructure was more developed.
http://www.engineeringnews.co.za/print-version/gas-industrialisation-could-be-a-game-changer-say-industry-players-2016-05-17

The story repeats itself – Cahora Bassa, Mozal, exporting coking coal instead of processing local iron ore, exporting gemstones but not creating a local jewellery industry, exporting most cashew nuts unprocessed.

By: Joseph Hanlon

Source: News reports & clippings