Could Mozambique close Africa’s crippling energy gap?

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The recent discovery of gas in the Rovuma basin off the coast of Mozambique has made the country the ninth largest reserves in the world and, has the potential to transform not only the Mozambican economy but South Africa’s economy as well.

On the cusp of a prosperous gas boom – South Africa’s proximity to neighbouring Mozambique presents catalytic prospects for developing the gas market and, accessing part of that indigenous gas potentially using part of that gas as feedstock for the Gas-to-Power program envisaged for the country.

South Africa does not have a lot of indigenous gas and, until Total starts producing gas from its recent offshore gas field discovery, anything between five to seven years, Bhavtik Vallabhjee believes that Mozambique holds the keys to the country’s energy future.

The easiest and cheapest way for SA to actually access gas is, from our doorstep in Mozambique.

Bhavtik Vallabhjee, Head: Power, Utilities and Infrastructure, Absa Corporate and Investment Banking

I think that it could really go well for us as a country, where because of the gas price, we can actually complement and, gradually move away from 90%+ coal-fired generation to clean energy, which includes renewables, and gas-fired power generation being used.

Bhavtik Vallabhjee, Head: Power, Utilities and Infrastructure, Absa Corporate and Investment Banking

To support its vision – the country’s 25-year gas trade cooperation agreement with Mozambique places South Africa in a favourable position to further economic growth and stimulate investment into the country’s energy policy.

Gas has a great role to play in South Africa.

The spill-over from Mozambique’s gas market into the South African market will create more jobs, which will increase disposable income and, bring stability to the region.

For more detail, watch the video below. Bhavtik Vallabhjee (Head: Power, Utilities and Infrastructure, Absa Corporate and Investment Banking) in discussion with Colin King (Principal: Resource and Project Finance, Absa Corporate and Investment Banking) about the development of South Africa’s renewable energy rescue plan and, the business opportunities that rest at the doorstep of Mozambique’s gas industry.