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Significance

Oil and gas major Total has suspended work on its nearby liquefied natural gas (LNG) site, while a humanitarian crisis has worsened. Pressure for an external military intervention has increased dramatically, notably from the Southern African Development Community (SADC), but Mozambique’s ruling FRELIMO remains reluctant.

Impacts

A delay to planned LNG projects, coupled with ongoing insecurity, mean economic growth will remain subdued through the medium term.

Delays to FRELIMO’s succession process to replace President Filipe Nyusi will become an increasingly explosive political issue.

An outside military intervention would force FRELIMO to re-align its regional and international strategic alliances in the short term.

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