Mozambique and Germany have a special relationship, that was formalised when the German Democratic Republic established diplomatic relationships with the then newly independent Republic of Mozambique in 1975. Since then, a great many Mozambicans have been educated in Germany. Another 20,000 were employed in Germany as contract workers. Since the 1980’s, Germany has spent more than USD 1 billion in development aid to Mozambique. Whilst this is laudable, this relationship must evolve to change focus away from aid and towards investment, in response to the numerous opportunities in gas development and other sectors.
German companies need to invest in the development of new gas prospects, in the servicing of the existing developments and in the building of a petrochemical sector in Mozambique. Germany has a strong petrochemical industry that can take advantage of the opportunities in Mozambique with Africa’s USD 1.2 Billion population providing a ready market for such an industry. This will ultimately lead to a win-win situation for both countries. It will not only help to generate economic growth, but will also ensure the creation of good paying jobs, skills developing apprenticeships and the transfer of technology to Mozambique.
Gas is fast establishing itself as a key player in the global energy transition dynamics as nations seek to significantly reduce carbon dioxide emissions and other air pollutants. The realisation, that developed economies like Germany and fast-growing economies like China can only realistically meet their emission targets without forgoing economic prosperity by adopting gas as a major source of energy has put countries with large gas resources, like Mozambique in the focus of investors. The share of gas as a primary source of energy has been steadily growing since the 90’s, and this trend is expected to continue. In China, gas now accounts for over 7% of primary energy use from about 1% in 1990. In Germany, gas accounts for 27% of primary energy use from about 15% in 1990.
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