Socioeconomic Implications of the Suspension of Totalenergies’ Mozambique Lng Project in Palma District, Mozambique

Background: The suspension of the Mozambique LNG project in Palma District, Cabo Delgado, generated significant socioeconomic repercussions in a territory affected by dependence on extractive activities, armed conflict, population displacement, and institutional constraints.

Methods: This study analysed the socioeconomic implications of the project’s suspension between 2021 and 2025 using a qualitative, descriptive and interpretive approach. Data were collected through semi-structured questionnaires, semi-structured interviews, direct observation, and documentary analysis. The study involved 30 participants selected through convenience sampling and 12 purposively selected key informants.

Results: The findings reveal predominantly negative perceptions regarding access to health services, education, infrastructure, employment, income, and business activities. However, these effects cannot be attributed exclusively to the project suspension because of the concurrent influence of armed conflict, population displacement, institutional constraints, and pre-existing socioeconomic vulnerabilities. Communities responded through small businesses, agriculture, local trade, street vending, and mobility. Subcontracted companies experienced reductions or interruptions in contracts, projects, customers, and workloads, as well as dismissals and income losses, prompting cost reduction, diversification, restructuring, and the search for new markets and projects.

Conclusions: The suspension exposed and aggravated socioeconomic vulnerability associated with dependence on a major extractive investment. The study highlights the importance of economic diversification, institutional strengthening, local capacity development, alternative livelihood opportunities, and socioeconomic protection mechanisms to reduce vulnerability to interruptions in large-scale extractive investments.