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Significance

Beyond the major security and humanitarian concerns this is generating, it has also worried investors who were already hesitant about supporting the restart of liquefied natural gas (LNG) operations offshore Cabo Delgado. These developments may make the battle to succeed President Filipe Nyusi even more complicated.

Impacts

The main opposition Renamo party will choose a new president (or re-elect its current one) in April.

The revival of the insurgency might lead to a new security arrangement in Cabo Delgado.

Other lenders may wait for the US Exim bank to authorise its promised loans for the LNG project before they follow suit.

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