Standard Bank and the Mozambique Oil and Gas Chamber have signed a memorandum of understanding (MoU) to strengthen the participation of micro, small and medium-sized enterprises (MSMEs) in Mozambique’s energy value chain, as major liquefied natural gas (LNG) projects advance towards commissioning.

Signed in Maputo, the partnership aims to help local businesses secure contracts through improved access to finance, business capacity building, technical support and connections with major energy operators.

The African Energy Chamber (AEC) has welcomed the agreement, describing it as an important step towards ensuring that domestic companies benefit from Mozambique’s growing energy investment pipeline.

The initiative seeks to address longstanding challenges facing local suppliers, particularly limited access to working capital, technical capabilities and commercial networks needed to compete for contracts associated with large-scale energy developments.

“Mozambique is attracting billions of dollars into LNG development, but the true measure of success will be how much of that investment reaches local companies, creates jobs and builds lasting industrial capacity. Standard Bank and the Mozambique Oil and Gas Chamber are demonstrating exactly the kind of partnership Africa needs to turn major energy investments into opportunities for African businesses,” states NJ Ayuk, Executive Chairman of the AEC.

The agreement comes as Mozambique advances several major LNG developments that are expected to create significant opportunities for local businesses across construction, logistics, engineering, equipment supply and other supporting services.

TotalEnergies' Mozambique LNG project, designed to produce 13.1 million tonnes per annum (mtpa), is targeting first production by 2029. Development work is progressing at the Afungi site, where more than 4,000 workers are currently mobilised.

ExxonMobil is also advancing its Rovuma LNG project towards a planned 2028 start. The proposed development has a production capacity of 18.6 mtpa, with the company recently selecting an engineering and procurement contractor.

Meanwhile, Eni announced at African Energy Week 2026 that drilling for its $7.2 billion Coral Norte floating LNG (FLNG) project would begin in early November. With a planned capacity of 3.6 mtpa, the development is expected to double Mozambique's LNG output to approximately 7 mtpa.

Eni already operates the Coral Sul FLNG project, which began production in 2022.

Together, these developments are strengthening Mozambique's position as a global LNG exporter while creating opportunities for domestic companies to participate in increasingly complex energy supply chains.

According to Florival Mucave, President of the Mozambique Oil and Gas Chamber, the partnership will help local businesses identify opportunities and improve their readiness to meet industry requirements.

The partners “aim to ensure that, as business opportunities emerge in connection with the supply chains of LNG projects, Mozambican companies not only know about these opportunities but are also increasingly prepared.”

Access to finance is a central component of the agreement. Mucave highlighted findings from a 2024 MozUp study showing that, among 104 suppliers surveyed, only 27 per cent had access to bank loans, while 84 per cent relied on informal financing sources to cover approximately half of their business requirements.

The findings underline the financing constraints facing local suppliers seeking to participate in major energy projects. Through the MoU, Standard Bank and the Chamber aim to connect businesses with financial institutions while providing training and support to improve their commercial and operational capabilities.

The initiative also seeks to strengthen local content development by helping Mozambican enterprises meet procurement standards and compete more effectively for contracts.

“A Mozambican entrepreneur should not lose a contract simply because they cannot access working capital or meet procurement requirements without support. We commend Standard Bank and the Mozambique Oil and Gas Chamber for moving beyond commitments to local content and putting practical solutions in place to help domestic businesses compete and grow,” Ayuk added.

The partnership highlights the growing importance of collaboration between financial institutions, industry organisations and energy operators in translating large-scale investments into broader economic benefits.

By improving access to finance, strengthening business capabilities and connecting local suppliers with project opportunities, the initiative aims to support job creation, industrial development and greater domestic participation in Mozambique's expanding energy sector. -OGN/TradeArabia News Service