The economy of Mozambique is expected to grow significantly between 2022 and 2024. According to a prediction by the World Bank, the East African nation will witness a rise in its economy, averaging 5.7 percent in the next 2 years.
The prediction comes at a time when the economy of the East African nation has raised concerns among citizens, who have demanded that something be done to immediately cushion the effect of the economic crisis.
The country is seemingly well-placed in line to enjoy the benefit of the growing rise in the demand for liquefied natural gas. A venture that has been actively endorsed by the country’s government as production is expected to begin this year.
According to the World Bank, the start of the LNG production will create an investment opportunity and a revenue source for Mozambique. This will immediately help boost its economy since there is a high demand for LNG in the world currently.
A resumption of the production of LNG at the offshore Coral project is expected to begin soon, With an expected growth rate, that could simply be described as “impressively reassuring” for citizens of Mozambique.
Natural gas from Area 4 resources in the Rovuma Basin, off the coast of Mozambique, is processed as part of the Coral LNG project, which is run by the Italian company Eni (ENI.MI).
According to the corporation, it started pumping gas last week in an attempt to resuscitate the LNG production projects in Mozambique.
According to the World Bank, Mozambique’s agreement to a three-year extended loan facility with the International Monetary Fund and others, will help to enhance its economic recovery.
The $456 million program, which was Mozambique’s first since the lender discontinued financing six years ago, was authorized by the IMF executive board in May.
However, the World Bank has cautioned that there are still risks to Mozambique’s economic development, particularly from growing import costs.
The growing adverse effects are said to be brought on by the situation in Ukraine, a potential increase in COVID-19 infection waves, and insurgency in the country’s north.