Mozambique: AfDB Advocates for Domestic Monetization of Natural Gas as a Pillar of country’s Energy Transition

Natural gas should be recognized as a strategic driver of socioeconomic development and an essential transition fuel on Southern Africa’s path toward cleaner and more sustainable energy systems. This position was put forward by Charles Nyirahuku, Head of the Gas Division at the African Development Bank (AfDB), during the Regional Inter-Parliamentary Conference on Climate Change, Energy Transition, and the Oil and Gas Sector in the SADC Region, held on Tuesday, July 29, in Maputo.

As the region debates how to reconcile energy security, economic growth, and climate action, Nyirahuku emphasized that “the African continent holds significant natural gas reserves, estimated at 640 trillion cubic feet (Tcf), representing about 8% to 9% of the global total.” Despite this potential, he warned that nearly 80% of Africa’s production is still exported in raw form, without generating local value.

“We must reverse this trend. Natural gas should not continue to leave Africa solely as a raw commodity. There is an urgent need to invest in domestic monetization to generate power, produce fertilizers, develop industries, and transform the economic structure of our countries,” the AfDB representative stated.

According to Nyirahuku, the limited local processing capacity, dependence on external infrastructure, and lack of investment in refining and transportation are hampering gas’s potential as a catalyst for industrial and energy development. He believes the solution lies in “stronger regional political coordination, bolder legislative frameworks, and the creation of financing models adapted to African realities.”

On the role of gas in the global energy transition, Nyirahuku acknowledged the intense and often polarized nature of the international debate. While some view gas as a cleaner temporary alternative to coal and oil, others warn of prolonged fossil fuel dependence and emission impacts. “But we cannot ignore the African context. We are responsible for less than 4% of global emissions, yet we face huge energy access challenges. Over 600 million Africans live without electricity. For us, gas is a necessary bridge as we gradually increase investments in renewables,” he argued.

Nyirahuku also used the opportunity to denounce the inequity in global climate finance access, noting that less than 5% of such funding is directed to Africa. “We need a fairer international financial system—one that recognizes the needs of developing countries and supports projects that combine development with environmental sustainability,” he stressed.

The conference in Maputo brings together lawmakers from Mozambique, Angola, South Africa, Namibia, and the Democratic Republic of Congo, as well as experts from the Pan-African Parliament, the African Development Bank, the African Energy Commission (AFREC), civil society organizations, and international agencies.

The event is jointly organized by the Institute for Multiparty Democracy (IMD), Southern Africa Resource Watch (SARW), the SADC Parliamentary Forum, and Mozambique’s National Assembly. Its main goal is to identify strategic priorities and propose concrete actions for a just, inclusive, and sustainable energy transition in the SADC region, with a special focus on the coal, oil, and gas sectors. Source: Nário Sixpene