Partnerships and initiatives for the future of Cabo Delgado

September 24, 2024

Valige Tauabo, governor of Cabo Delgado, talks to The Energy Year about the future of gas projects in the province, how major projects will benefit the province’s population, its security situation and the significance of the mining sector. Cabo Delgado is the northernmost province of Mozambique.

What is the future of gas projects in the province?
While the world explores renewable energy sources, Cabo Delgado Province recognises the continued potential of natural gas. We believe gas can be a valuable tool for development if utilised responsibly.
Firstly, we aim to maximise the benefits of gas extraction for our local communities. This includes infrastructure development, job creation and social programmes that improve the lives of our people. Secondly, we acknowledge the transition towards renewable energy. However, gas can still play a crucial role in the near future. By using it effectively and responsibly, we can bridge the gap until renewable sources become dominant.
Looking ahead, Cabo Delgado is poised for significant development. In addition to historic investments in the energy sector of more than USD 30 billion, another Eni offshore platform is in the pipeline in the Rovuma Basin. We believe gas can be a catalyst for this progress, not just economically but also in terms of human development.
While acknowledging the current challenges, Cabo Delgado is determined to become a beacon of prosperity. We are confident that by harnessing both natural gas and renewable energy sources, we can build a brighter future for all our residents.

How can major projects in the province economically benefit both the government and the province’s population?
By fostering partnerships with state institutions, we’re developing programmes that support the growth of local businesses in the industrial and commercial sectors. These initiatives, alongside the positive example set by TotalEnergies’s social responsibility efforts, will empower our youth and ensure they are active participants in shaping the province’s future. These programmes could include the allocation of equipment for micro and small businesses.
Building strong local content is a cornerstone of our development strategy. We believe companies must prioritise preparing local businesses to effectively participate in these projects. This requires aligning local capabilities with the needs of major gas and oil exploration companies.
By working together and transferring the necessary knowledge, we can empower local businesses to take ownership and become integral parts of these projects, ensuring a bright future for everyone in Cabo Delgado Province. We’re already seeing positive results from these initiatives.
Initially, there were understandable concerns surrounding these projects. Misinformation campaigns further fuelled anxieties. However, we’ve actively engaged with our communities to address these concerns and ensure transparency.
Today, the people of Cabo Delgado Province are enthusiastic about the project and are actively involved. They play a key role in identifying areas for development, showing they are truly partners in this journey. We understand that development can involve some disruption, but we are committed to responsible practices that prioritise people’s safety and long-term well-being.

What is the status of the security situation in the province?
The security situation in Cabo Delgado Province has undergone a dramatic positive transformation. Just a few years ago, in 2021 and 2022, insecurity was rampant, forcing many to flee their homes. Today, we are witnessing a welcome reversal. People are returning to their hometowns, which demonstrates their remarkable resilience even in the face of occasional extremist activity.
This shift is a testament to the unwavering spirit of our people. They are no longer abandoning their land but are choosing to remain steadfast. This newfound confidence stems from the unwavering support provided by our Mozambican defence and security forces, alongside their Rwandan counterparts and local forces.
We are deeply grateful for their tireless efforts in safeguarding our communities and restoring stability to the region. Now we can confidently say that we are on the path to achieving effective stability thanks to them.

 

How significant is the mining sector for the economic development of Cabo Delgado Province?
Cabo Delgado Province offers a great potential of resources beyond gas. Our vast province holds untapped potential in oil, gas and various minerals such as heavy sands, tin and precious stones.
As a government, we prioritise creating an inviting environment for investment. National laws simplify domestic investment, foreign direct investment and PPPs, making Mozambique, and particularly Cabo Delgado, an attractive destination for investors.
We understand the importance of collaboration. We actively listen to investors’ concerns and ensure the prompt resolution of any issues within our control.
However, the global market presents some challenges. For instance, the recent decline in demand for graphite, a key Cabo Delgado mineral, has impacted existing mining projects. While production increased slightly in 2022, the first half of 2023 saw a significant slowdown.
Despite these temporary setbacks, we remain optimistic. Cabo Delgado’s diverse mineral wealth is expected to gain international value, attracting renewed investor interest. The province is well-positioned to become a major player in the global mining sector.

How does the province promote environmental best practices in the extractive industries?
Cabo Delgado Province prioritises responsible development, ensuring gas exploration projects meet the highest environmental standards. Public consultations are crucial throughout the project lifecycle. These ensure transparency and empower affected communities to actively participate in decision-making.
Additionally, regular environmental investigations and public and private audits, as mandated by law, will be conducted to assess compliance with environmental impact studies and management plans.
We advocate for responsible resource use. This includes promoting renewable energy sources such as solar, wind and hydropower over environmentally harmful alternatives. Encouraging community reforestation efforts to sequester carbon and mitigate climate change is also a priority. Additionally, we will evaluate the sustainable utilisation of forest resources, such as fuelwood and construction materials.
Our government recognises the importance of addressing community concerns, which can sometimes be manipulated by misinformation. Our vision is to align investors with this approach, ensuring responsible development.
While respecting valid concerns, our ultimate goal remains fostering development in the region. However, this development must adhere to the outlined environmental sustainability standards. Excessive restrictions that impede progress are not the answer. Responsible development and environmental responsibility go hand in hand, ensuring a brighter future for all.

How are renewable energies integrated within the province’s electrification ambitions?
Here in Cabo Delgado Province, we’re making significant strides towards a brighter future with renewable energy. Four photovoltaic substations have been built in several cities, and more are under construction.
These projects are not just infrastructure; they’re making a real difference in people’s lives. The operational Metoro photovoltaic plant, a partnership between Neoen and FUNAE, has brought electricity to the Namuno and Nangade communities using solar panels. These achievements also demonstrate the effectiveness of collaboration between the government, the private sector and local communities.
The demand for renewable energy is growing, attracting new investors to the sector. The Mozambican government actively encourages this trend, recognising the positive impact it has on our environment and communities. Cabo Delgado is leading the way in this transition, and the positive effects are undeniable.

What is the potential of Cabo Delgado as a regional logistics hub?
Our geographical location is a key asset. We see Pemba emerging as a central distribution point for large goods, connecting us to other provinces within Mozambique and neighbouring countries. By developing efficient transportation networks, we aim to unlock Cabo Delgado’s potential as a vital trade link.
Cabo Delgado’s proximity to Indian Ocean islands such as Madagascar, Mauritius, Seychelles, Comoros and Réunion presents a unique opportunity. Pemba’s strategic location, with its mainland connection and access to the ocean, positions it perfectly to become a crucial trade hub for these island nations.
We are taking concrete steps to realise this vision. Our immediate priority remains ensuring security and stability in the region. Once a secure environment is established, Cabo Delgado can truly flourish as a pivotal point in Africa, a place that receives, connects and contributes to the continent’s growth.

What is your main message for investors in the province?
My message is clear: Cabo Delgado Province acknowledges the current security challenges related to extremism. However, we want the world to see beyond these temporary difficulties and recognise Cabo Delgado’s immense potential as an investment destination.
The issue of extremism is being effectively addressed by our dedicated defence and security forces. Their tireless efforts ensure that these challenges are temporary and their days are numbered. Now is the perfect time to consider investing in Cabo Delgado. We encourage existing investors to stay committed and new investors to explore the vast opportunities that await.
Cabo Delgado boasts exceptional potential. Our province is rich in natural resources, with unexplored oil and gas reserves. Our hinterland holds hidden treasures – heavy sands, tin and various precious stones such as gold. Cabo Delgado offers a diverse range of investment opportunities, and we wholeheartedly invite anyone interested to explore what we have to offer.
The Cabo Delgado Provincial Government is actively facilitating investment opportunities. We’ve established the Centro de Promoção de Desenvolvimento Econômico de Cabo Delgado specifically to support investors. This dedicated entity welcomes new ventures, streamlines processes and promotes all that Cabo Delgado has to offer, ensuring complete transparency.
We are committed to fostering a business-friendly environment. We encourage investors to identify any legal obstacles that may hinder operations. We are open to suggestions and dedicated to making necessary adjustments to improve business ease in Cabo Delgado. The Cabo Delgado Provincial Government remains steadfast in its commitment to attracting foreign direct investment and fostering a thriving economy.
The challenges we face are temporary, and the opportunities are vast. We invite you to join us in building a brighter future for Cabo Delgado. Explore, invest and be a part of our success story.

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