Being one of the poorest economies in the world, Mozambique might just turn its economy around with a cash in on a gas-boom.
If the ongoing challenging legislation and infrastructure is overcome by the government and wealthy gas giants, Mozambique might just become the major Liquefied Natural Gas (LNG) exporter, with the new research citing series of discoveries made in the Rovuma basin within the last three years.
The country aims to attract investments of about $50 billion on or by 2020, being that its geographical location puts it in a position where its LNG production can easily reach both Asian and European markets, thereby representing the fastest developing energy player in East Africa.
Pessimism about industrial development in the country however persist, giving record of the fact that Civil war ended in Mozambique in 1992, which caused a lot of destruction to infrastructures and the country lacks a well developed heavy industry to support the LNG sector development, while international companies and investors will require shifts in current laws and legislation in order to benefit fully from the country's resources.
Part of the section of law that needs to be addressed is its limit to employment of expatriate workers in the country which is about 5%-10% of a company's total workforce, this poses a problem as there is a huge unskilled and uneducated workforce problem, which means that skilled labour for LNG projects may not be available within Mozambique.
However work permits required for foreign employees exceeding the company limits are individually approved, which is pretty much time consuming, current foreign exchange policy also demand that export income is repatriated to Mozambique and that half of export sales are converted to local currency.
(Edited by: Blueblock)
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