U.S. Export-Import Bank Approves Controversial Mozambique LNG Support

The U.S. Export-Import Bank is poised to approve support for the Mozambique LNG project, amidst alarming reports of human rights violations associated with the project. Investigations by international entities highlight ongoing concerns, including a French prosecution over the Palma Massacre. Critics argue that the funding contradicts ethical investment practices and raises significant humanitarian concerns.

The U.S. Export-Import Bank (EXIM) is set to approve significant support for the Mozambique LNG project managed by Total Energies, igniting considerable concern over severe human rights violations that have been reported in connection with the gas development. Several entities, including the Dutch government and the Mozambican Attorney General’s office, have initiated investigations into alleged abuses and deaths linked to security forces protecting the project.

Furthermore, the French state prosecutor is conducting an inquiry into Total Energies concerning complaints related to the manslaughter of victims from the 2021 Palma Massacre. A British coroner’s court will review the death of Philip Mawer, who was killed during the violence that ensued when Total Energies evacuated the area.

Daniel Ribiero, Technical Coordinator of Friends of the Earth Mozambique, expressed that the conditions surrounding the Mozambique LNG project, including human rights violations and environmental impacts, should deter sensible investors. He criticized the EXIM’s decision to approve $4.7 billion in financing for the venture, especially given past reductions in U.S. aid aimed at supporting public health in Mozambique.

Kate DeAngelis, Economic Policy Deputy Director for Friends of the Earth U.S., condemned the allocation of resources, stating, “As the Trump Administration eliminates taxpayer-funded foreign aid – which saves lives and provides disaster relief – it is giving an almost $5 billion handout to the fossil fuel industry,” indicating a misallocation of funds.

Simone Ogno from ReCommon noted that similar lapses were exhibited by the Italian export credit agency SACE, which initially supported the project without assessing its social and environmental repercussions. The EXIM’s forthcoming decision mirrors this lack of accountability, suggesting a concerning alignment between the U.S. and Italian governments amidst substantial human rights concerns.

The Mozambique LNG project is situated in a nation with eroded democratic processes, facing widespread protests since late 2024. The government’s response has been severe; by mid-January 2025, human rights groups estimate that over 300 individuals were killed and thousands detained illegally.

The impending approval by the U.S. Export-Import Bank for the Mozambique LNG project raises critical alarms due to documented human rights abuses and inadequate investor scrutiny. With various international bodies investigating serious allegations, the approval appears misaligned with ethical standards. Such a deal draws attention to governmental priorities that seemingly favor profit over humanitarian considerations, exacerbating an already precarious situation in Mozambique.

Original Source: foe.org