The construction of a multibillion-dollar liquefied natural gas plant in Mozambique is set to resume after the Trump administration approved a $4.7 billion loan to bolster American companies against Chinese competitors in Africa. Last month, the US Export-Import Bank (Exim) reapproved the loan to support American equipment and services for the $20 billion LNG project on the Afungi Peninsula in northern Mozambique under French oil company TotalEnergies.
This loan represents the biggest in Africa in US Exim Bank’s 91-year history as America increases investments in strategic industries to counter China’s influence on the continent. The financing aims to make American companies and suppliers more competitive against Chinese and Russian firms.
The loan deal initially received approval in 2020 during Trump’s first term but was suspended during the Biden administration, which was reluctant to support new fossil fuel initiatives. Work on the project was also halted in 2021 following terrorist attacks near the site in Mozambique’s northern Cabo Delgado province.
Source: www.scmp.com
