Mozambique is intensifying its bid to become one of Africa’s leading energy hubs, launching a wave of oil and gas initiatives aimed at transforming its energy landscape and lifting the country’s economic prospects.
Backed by new international partnerships, sweeping infrastructure plans, and renewed investment from global financial institutions, the southern African nation is setting its sights on becoming a serious player in the continent’s oil economy.
One of the most ambitious moves so far is the planned construction of Mozambique’s first oil refinery.
The project is being led by state-owned Petromoc, which recently signed a memorandum of understanding with Nigeria’s Aiteo, one of West Africa’s largest energy companies.
Modeled after the bold steps taken by Aliko Dangote in Nigeria, the refinery aims to enhance domestic production and regional exports.
“This project, to be implemented over a maximum period of 24 months, will increase storage capacity by 160,000 metric tonnes for liquid fuels and 24,000 metric tonnes for Liquefied Petroleum Gas,” said Mozambique’s President Daniel Chapo.
He noted that the facility will significantly reduce Mozambique’s reliance on petroleum imports, while also boosting GDP and creating new employment opportunities.
“The refinery will produce gasoline, diesel, naphtha, and Jet A1 with the ambition of conquering the regional market,” he added.
Mozambique currently imports most of its refined oil products, with India being the dominant supplier, followed by Saudi Arabia, Bahrain, Malaysia, and the United Arab Emirates.
The new refinery is expected to fill a critical gap in the domestic supply chain and support growing energy needs across southern Africa.
In a further step toward regional energy integration, Mozambique and Zambia have entered into an agreement to build a $1.5 billion pipeline that will transport 3.5 million tonnes of petroleum products from Mozambique’s port city of Beira to Ndola, Zambia.
The project includes large-scale storage infrastructure in both countries and is scheduled for completion within four years.
Meanwhile, Mozambique’s gas ambitions are also gaining momentum.
In March 2025, the board of the U.S. Export-Import Bank approved a $5 billion loan for the long-delayed Mozambique LNG project, led by French oil major TotalEnergies.
Although the original 2029 target for production is no longer realistic, TotalEnergies CEO Patrick Pouyanné reaffirmed the company’s commitment to reviving the development, which is considered essential for Mozambique’s energy future and global gas supply.
Mozambique’s Energy Minister Estevão Pale emphasized the strategic value of the project, stating that it represents a cornerstone of national economic growth and international energy security.
Additionally, financing discussions are ongoing for another offshore LNG project led by Italy’s Eni SpA, further cementing Mozambique’s position as a major gas producer.
Elsewhere on the continent, energy activity is heating up.
Namibia is preparing for commercial oil production after recent discoveries estimated at 2.6 billion barrels.
Rwanda has also made headlines, announcing its first-ever oil discovery in Lake Kivu, with 13 reservoirs identified along its natural border with the Democratic Republic of Congo.
The move could eventually position Rwanda among Africa’s recognized oil-producing nations.
Alongside established heavyweights like Nigeria, Algeria, Egypt, Angola, and Libya, countries such as Ghana, Gabon, Cameroon, and Equatorial Guinea continue to expand their output.
With new entrants and old players alike ramping up investments, Africa’s energy map is rapidly evolving—and Mozambique appears determined to secure a prominent place on it.
