UK’s Withdrawal From Mozambique LNG Funding Is A Blow To African Energy Justice — AEC

The African Energy Chamber has condemned the UK’s withdrawal of $1.15 billion from Mozambique LNG, highlighting how Western climate agendas undermine Africa’s urgent need for energy security and economic growth.

A Tuesday statement by the Chamber on Tuesday noted that the decision to withdraw $1.15 billion in support from the TotalEnergies-led Mozambique LNG project is a concerning example of Western policy priorities undermining Africa’s development.

Announced on Monday, the decision comes at a moment when global energy markets face unprecedented pressure.

“Yet, the UK appears more focused on ideological signalling rather than practical solutions to persistent energy poverty.

“The Mozambique LNG project is far more than another fossil fuel venture. It represents a transformative opportunity for the continent, with the potential to deliver 13 million tons of LNG annually – powering industries, fueling domestic growth, and supporting economic development in a region where millions still live without reliable electricity.

“By withdrawing support, the UK has chosen to prioritize its green and “woke” agenda over African progress, focusing on counting emissions rather than taking into consideration African energy poverty and the need to prioritise energy security, affordability, and sovereignty.

“Security challenges in northern Cabo Delgado forced TotalEnergies to suspend operations in 2021. Since then, improved conditions have allowed the company to lift the suspension and resume planning, contingent on government approval for a revised development roadmap.

“Rather than recognise this progress, UK Export Finance cited ‘risks’ as justification for withdrawal – a rationale that reflects priorities driven more by political optics than by Africa’s urgent energy needs.

“The same risk has been evaluated by the US, with the US Export-Import Bank moving to reapprove a loan earlier in 2025 in recognition of the improved situation on the ground.

“The decision to withdraw financing reflects a broader trend by the UK to follow an anti-fossil fuels agenda, one that has already put North Sea production in great decline.

“The African Energy Chamber (AEC) condemns the decision to withdraw, deeming the decision as not only a setback for Mozambique but for the entire continent. The withdrawal undermines African energy security, industrial ambitions, and efforts to lift millions from energy poverty.

“This pattern has repeated across the continent: projects delayed or blocked, investments withheld, all justified in the name of climate or security concerns, while energy poverty persists.

“Africa does not need moral instruction on climate from nations that consume energy at levels far beyond the continent’s needs. What is essential are partnerships that respect African priorities, timelines, and the sovereign right to develop sustainably.

“Withdrawing support from Mozambique LNG is a betrayal of Africa’s right to energy security and a slap in the face of progress for the continent’s millions living without reliable power. This moment should serve as a call to action: it serves as a stark reminder that Africa’s energy future cannot rely solely on foreign financing or conditional support.

“Mozambique LNG, and projects like it across the continent, must be championed by Africans for Africans, with a focus on responsible development, job creation, and the eradication of energy poverty,” the Executive Chairman of the AEC, NJ Ayuk, stated.

He noted that the Mozambique LNG project highlighted what African energy development should look like: ambitious, transformative, and responsible.

Gas liquefaction projects in Cabo Delgado are expected to create at least 10,000 direct jobs by 2025, focusing on local populations and supporting young graduates with SME development.

Construction of the Mozambique LNG facility alone has been estimated to create around 5,000 jobs.

Beyond employment, LNG production and exports have already generated rising government revenues, with state LNG-related earnings increasing by over 20% last year.

READ ALSO: UK Withdraws Loan For Mozambique Gas Project

Once fully operational and supported by stable financing, Mozambique LNG could deliver the energy, revenue, and human capital needed to power industry, boost public services, and lift communities out of energy poverty.

“Africa is rich in natural resources – including its 620 trillion cubic feet of natural gas – yet these resources are too often treated by Western governments as tools of influence rather than drivers of growth.

‘The UK’s withdrawal underscores the urgent need for Africa to develop independent financing mechanisms, attract investors who respect its priorities, and strengthen regional cooperation to protect critical energy projects.

“Mozambique LNG exemplifies how African energy development can create jobs, drive industrial growth, and reinforce economic sovereignty. Energy security cannot be dictated by shifting foreign political priorities.

“Led by Africans with a focus on responsible development, projects like Mozambique LNG can deliver tangible benefits, empower communities, and help eradicate energy poverty across the continent”, the statement added.