2.2 - Mozambique

Question 1

Mozambique

Answer 1

Ex-Portugese
World’s 2nd poorest country
55% under poverty line
Growth rate of 7% a year with young education

Question 2

Why Might Mozambique Be Energy Secure

Answer 2

Physical Ability - 127bnm3 of gas worth $350 bn
Cost - Government will collect $1bn tax from companies exploiting the gas
Technology - Portugal, Japan, US, India, UAE, Brazil all want to invest in oil/gas infrastructure bring billions to Mozambique.
Economic Development - 7% growth per year creating educated population
Environmental Priorities - Young people want increased environmental protection from government.

Question 3

Why Mozambique May Not Be Energy Secure

Answer 3

Physical Availability - Only 3.8bcm exploited so far, exporting the most to South Africa
Cost - Only $13bn left after infrastructure spending, TNCs can’t wait 3 years for tax agreements
Public Perception - Land grabs, relocation, Poor working conditions and concerns to rebel due to corruption
Level Of Economic Development - 17 year civil war left 55% below poverty line and illiterate.
Environmental Priorities - Land sold to US companies and used for infrastructure.

Question 4

Colonialism

Answer 4

The relationship between Mozambique and it’s TNCs, suggest it’s being controlled by other countries, as they’re dependant on imports

Question 5

Overall Positives (Is Mozambique More Secure Than Ukraine).

Answer 5

Geopolitical history is much less divisive
Ethnic issues are less severe
High GDP and capability to export as oil and gas has potential as opposed to coal.

Question 6

Overall Negatives (Is Mozambique More Secure Than Ukraine)

Answer 6

The potential for neo-colonial influence e.g. negative terms of trade
Corrupt government still recovering from 17yr civil war.