The much-awaited report by Jean-Christopher Rufin, following an assessment of the humanitarian situation in the northern Mozambican province of Cabo Delgado, urges TotalEnergies in its partners to establish a dedicated foundation to implement a sustainable socio-economic development programme in the whole province.
Rufin is a medical doctor who served as diplomat and humanitarian. He was entrusted by Patrick Pouyanné, the Chairman and Chief Executive Officer (CEO) of the French oil-giant TotalEnergies, to assess the humanitarian situation in the province that would feed the decision of the oil company to resume operations suspended after it declared force majeure in 2021, following an insurgent attack in Palma, on 24 March, close to the Afungi peninsula, site of Total’s offshore plant.
.The report, published on Tuesday, recommends the setting-up of the “Pamoja Tunaweza” (KiSwahili for Together We Will Succeed) initiative, and place it under the authority of a “senior person with solid development knowledge and experience of international institutions engaged in these fields,” meaning United Nations agencies and international non-governmental organisations.
Rufin recommends a multi-year $200 million fund for the foundation, which would be managed by the senior person, whose role would be to design, operator control and coordination with other stakeholders, that is representatives of Mozambique LNG and civil society personalities.
Mozambique LNG is a consortium comprising TotalEnergies (26.5%); three Indian oil companies NGOC Videsh Ltd, Bharat Petroleum, and Oil India Ltd (30% in total); the Japanese company Mitsui (20%); the Thai company PTTEP (8.5%); and the State of Mozambique (ENH 15%).
Crucially, a development strategy based not only on Mozambique LNG’s interest but those of the population as well should be drafted for the foundation. This would involve compensating people displaced by the gas project. However, its programmes should aim at improving the living conditions of the people now and not wait for future income from the gas.
Meanwhile, no date has been set for TotalEnergie’s resumption of opperations.
Comment
Rufin’s proposal for the foundation excludes government and the ruling Frelimo party. Perhaps the hope within Frelimo’s circle was that LNG Mozambique would fund government’s own ADIN (Integrated Northern Development Agency), set up in 2020 with the aims to create employment and training opportunities for young people, and to promote investment initiatives for socio-economic development of the communities, through micro, small and medium-sized companies.
ADIN hoped to attract $700 million from the World Bank. But apart from mobilising $100 million for economic and social projects but nothing more. The World Bank, which pledged to support ADIN, has bailed on the agency.
Although the World Bank refuses to say what led it to develop cold feet, observers point out at lack of trust that the funds would be used transparently, considering a litany of examples where monies were improperly used.
Basicaly, the proposed foundation will follow and clean up the mess made by different actors in the earlier states of the LNG project. Where all sorts of misconducts were reported, as well the misusef funds, and materials for the resettlement process.
It remains to be seen how government might react to Rufin’s recommendations. But if the resumption of operations by TotalEnergies hinges on the establishment of the foundation, government might consider that it could live with the snub than enter into an arm-wrestling contest with TotalEnergie over who should get the multi-year $200 million fund.
*Article updated
@2025, Mozambique Insights. All Rights Reserved
