The Chief Executive Officer of state-owned Export Credit Insurance Corporation of South Africa (ECIC), Kutoane Kutoane, said on Thursday that he hopes to see more than €1 billion in exports to the gas sector in Mozambique.
“What is on everyone’s mind is the natural gas sector in Mozambique, and we hope to support, with insurance on commercial and political risk, investments of 20 billion rands [€1.2 billion], which should allow the export of about 10 billion rands [€600 million] in South African goods and services to Mozambique,” Kutoane Kutoane said.
Interviewed by CNBC Africa, the CEO of the export credit insurance agency stressed the importance of infrastructure for industrialisation, citing the Nacala corridor as an example to follow in other African regions.
“About the Nacala project, we have supported the development of ports, and we will see more developments of this kind because infrastructure is key. But when we talk about industrialisation, we should remember that without the support of the necessary infrastructure, not only logistical but also physical, we cannot move forward with industrialisation and achieve optimal results,” he said.
For Kutoane Kutoane, recent years have shown an evolution in the type of insurance demanded, moving from mining to raw materials, and then with the fall in prices, the emphasis shifted from the mining sector to power generation, infrastructure development, electricity, water, ports and telecommunications.
Gas extraction in the Rovuma basin will operate off the coast of the northern province of Cabo Delgado, with liquefaction taking place on land in a factory under construction in the new gas city being built in Palma, on the Afungi peninsula, where the oil companies will share infrastructure.
The region has faced a wave of armed violence since 2012, but investments have continued despite the threat.
The attacks have already caused between 350 and 400 deaths among insurgents, residents and the Mozambican military, as well as leaving some 60,000 people affected or forced to leave their lands and homes, according to the latest United Nations Global Humanitarian Aid Plan for Mozambique review.
Source: Lusa via Club of Mozambique