Real Estate Investor Magazine South Africa October 2015 | Page 56

AFRICA

The Future of

Mozambique
The Impact of Gas
BY BRYAN WESTER

T

he world may be poised for the beginning of
the ‘Golden Age of Gas’. According to a study
conducted by Ernst and Young, natural gas is
the only fossil fuel whose share in the global energy
market is expected to grow. Mozambique stands at the
forefront of this gigantic opportunity for economic
development. The development of Mozambique’s gas
resources can substantially add to the potential new
supply Mozambique needs. The global landscape offers
and holds a tremendous opportunity for the country
to become a prime mover amongst economies of scale
in Africa.
The North-eastern coastline of Mozambique, with a
specific focus towards Areas one and four are estimated
to hold more than 100 trillion cubic feet of natural gas
deposits, which translates to about 50 metric tons of
liquefied natural gas exports. These discoveries can
hold as much potential as 30 to 40 times the current
Gross Domestic Product (GDP) of Mozambique.
More importantly though, are the subsidiary
industries that have already started to the reap the
benefits of these large natural gas fields in the Northern
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OCTOBER 2015 SA Real Estate Investor

part of Mozambique such as in the property and
construction sectors. The skyline of Maputo has already
been transformed into a ‘modern oasis’. Numerous
infrastructure layouts are now taking shape.
What does this mean for Mozambique, and more
specifically the property sector? Natural gas resources
are a critical, foundational element of the economic
growth and development of Mozambique. These
resources will account for a significant part of the states
revenues, a catalyst for employment and Foreign Direct
Investment (FDI), and the broader development of
infrastructure in the country.
This is most notably seen by the large amounts of
FDI in the exploratory phase of these natural gas
fields, from the likes of Anadarko, Vale, ENI and
Sasol, whom combined have contributed US$5 billion
towards these endeavors over the past five years. The
Mozambican government and property developers are
those who have benefited the most so far.
In the last quarter of 2014, the Mozambican state
owned company of ENH (the commercial arm for
the hydrocarbon sector, for research, development
www.reimag.co.za