TotalEnergies’ $20 billion liquefied natural gas project in Mozambique has faced increasing local frustration after its revival in October 2025, following a suspension due to Islamist militant attacks in Palma. Hotel manager Fernando Cuna noted that many locals had invested in businesses, expecting economic benefits from the project, but now feel abandoned as the company’s operations are confined to a secure compound. This “containment mode,” while necessary for security, has cut off local communities from participating in the anticipated economic boom, leading to a collapse of Palma’s fragile economy.
As project activity resumed, workers are flown in and supplies arrive by sea, leaving local businesses struggling with diminished clientele. Nersa’s statements claimed a commitment to increasing local economic participation, but for many residents, hopes for job creation and local procurement have turned to disappointment. Meanwhile, violence from insurgent groups has been on the rise, as the region has become increasingly volatile, with analysts suggesting the government’s prioritization of resource extraction over citizen welfare fuels local resentment.
The Mozambique government maintains that security has improved and emphasizes the potential job creation the project could stimulate. However, local businessmen report significant losses tied to their previous contracts, further exacerbating regional frustrations, especially among youth who had hoped to enter the labor market. Experts warn that this situation may bolster insurgents’ narratives regarding government neglect and exploitation.
The presence of Rwandan troops—initially seen as a security measure—has been criticized for lacking effectiveness against the increasingly bold insurgents, creating a sense of insecurity among local populations. The incongruity between the fortified project and the deteriorating local conditions amplifies sentiments of distrust and betrayal among the community, leading many to question the future viability of investments in the area.