1.3 - Gas in Mozambique Flashcards
How much gas has been discovered in Mozambique?
27 billion cubic metres
would be enough to be the world’s 4th largest supplier. .
What must the new Government in Mozambique ensure for the people of Mozambique?
It must ensure young people benefit with jobs, skills. An educated population will want to know resources are accounted for and distributed equally.
What percentage of Mozambique’s population is classed as ‘youth’?
50%
What is the potential value of the gas in Mozambique?
$305 billion
Why are TNCs ‘put off’ investing into Mozambique?
TNCs are continually frustrated by the complex tax arrangements in Mozambique. In some cases it can take up to 3 years to start drilling. Tax systems can change 3-4 times a year, together with ‘royalties’ (aka bribes). Delays in implementing tax law make it harder for TNCs to want to invest.
What investment has Japan made into Mozambique?
Given loans of £400m over 5 years, to get coal and gas, as well as finance infrastructure projects that connect the port in Nacala to Malawi and Zambia
What is Dutch disease?
Dutch disease is the relationship between the increase in the economic development of a specific sector (for example natural resources) and a decline in other sectors (like the manufacturing sector or agriculture).
What percentage of the population in Mozambique work in agriculture?
75%
How much profit does Mozambique stand to gain from the gas reserves?
$13 billion
How does Mozambique have the potential to suffer from Dutch disease?
Gas exports will lead to an influx of foreign currency, which increased demand for Mozambique currency (Metical) and thus making it stronger. That made other parts of the economy less competitive in international markets such as selling crops.
