Mozambique Gas Revenue Stays Tiny as Debt Nears 96% of GDP
Mozambique · ECONOMY Key Facts —What happened Mozambique’s government projects gas-related state revenue of 5.1 billion meticais (about US$79.8 million) in 2027, equal to 0.27% of gross domestic product. —How big Total state revenue is projected at 488.3 billion meticais (about US$7.64 billion) in 2027, so gas would contribute roughly 1% of the budget. —The […] The post Mozambique Gas Revenue…
Mozambique’s liquefied natural gas (LNG) revenue will remain a small portion of its state budget through 2027, despite growing government debt nearing 96% of gross domestic product (GDP), according to International Monetary Fund (IMF) and Fitch data. The country’s gas-related state revenue is projected at just 5.1 billion meticais (approximately US$79.8 million) in 2027, representing only about 0.27% of GDP.
Total state revenue is expected to reach 488.3 billion meticais (approximately US$7.64 billion) that same year, making gas revenue just about 1% of projected state income. The 96% debt figure is a total public liability projection from Fitch, not a share of tax income. Mozambique’s only operating LNG project, Coral Sul FLNG, generated about 63 million US dollars annually between 2022 and 2025, a modest contribution to the 2027 projected total of 488.3 billion meticais.
Other onshore LNG projects face delays and instability in Cabo Delgado province. Mozambique, rich in unexploited gas reserves, has enacted a sovereign wealth fund law to manage future resource earnings. Balancing immediate budget needs with long-term savings remains a challenge amid external financing through the IMF and LNG-linked investors.
The government must navigate a high debt load near 96% of GDP while awaiting increased gas revenue, leaving little fiscal room for error.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
