Main points

• Mozambique’s energy sector has the potential to stimulate major economic development, provided that it is well managed and robust integrity measures are embedded from the decision-making stage to the point of service delivery.
• Several barriers need to be overcome for this to be realised, particularly regarding influence peddling in the sector which is largely driven by powerful multinational companies and businesses connected to the political elite.
• Regulatory challenges are another major issue facing the sector, with further independence needed for the national regulator.
• Challenges to good governance in the energy sector include a seven-year insurgency affected the gas rich northeastern areas of Cabo Delgado Province, which has evolved into a war affecting most of the province. Things escalated when gas deposits were discovered in the region, related in part to the social and economic marginalisation of the local population.
• Several potential integrity measures for the sector emerge from a review of the literature. These include greater transparency in sectoral procurement processes, beneficial ownership transparency, strong oversight and management of the new Sovereign Wealth Fund (established as of 2024), and improved dialogue with locally affected communities. Together, these policies could ensure that revenues derived from the country’s natural resources benefit the wider population.