The U.S. Export-Import Bank has reauthorized a $4.7 billion loan for a liquefied natural gas project in Mozambique, which has faced severe human rights issues, including civilian massacres linked to security forces. Initially set at $5 billion in 2019, the loan is intended to generate American jobs, despite the ongoing conflict that has halted operations on the project since 2021.
The U.S. Export-Import Bank has unanimously reauthorized a $4.7 billion loan for a contentious liquefied natural gas project in Mozambique. This decision reflects the federal agencies’ alignment with President Donald Trump’s initiative to support fossil fuels. The financing will aid the LNG facility being developed by TotalEnergies SE in the Afungi region, which has been marred by an ongoing Islamist insurgency linked to severe civil unrest, including reports of civilian massacres.
Originally approved in 2019 for $5 billion during Trump’s first term, the loan was revised to $4.7 billion but remains the largest in the agency’s history. Officials stated that the investment would generate thousands of American jobs through the necessary U.S. equipment and services for the project’s construction. Despite this promise, the situation in Mozambique has dramatically deteriorated since 2021, when Islamist rebels took control of the region, leading to over 1,000 deaths and a halt in TotalEnergies’ operations.
The violence in the area has resulted in the suspension of financing from the U.S. and other sources, raising serious concerns about human rights violations. A POLITICO investigation revealed that security forces, tasked with protecting the TotalEnergies facility, were implicated in the abductions and murders of civilians. TotalEnergies has denied involvement in any wrongdoing, but judicial investigations into these allegations are currently underway.
The reauthorization of the $4.7 billion loan for the Mozambique gas project highlights the conflicting priorities of U.S. economic interests versus global human rights concerns. The project, now fraught with violence and human rights violations, poses significant ethical questions for stakeholders involved. As judicial investigations continue, the situation demands careful scrutiny and accountability from all parties.
Original Source: www.eenews.net
