The U.S. Export-Import Bank reapproved a $4.7 billion loan for a contentious LNG project in Mozambique, linked to severe human rights abuses amid an Islamist insurgency. Originally set for $5 billion in 2019, the financing aims to bolster American jobs but raises ethical concerns given the ongoing violence and alleged atrocities in the region.
The U.S. Export-Import Bank’s board has reauthorized a substantial $4.7 billion loan for a contentious liquefied natural gas (LNG) project in Mozambique, reflecting the administration’s commitment to fossil fuel development. This decision, made public recently, will aid the LNG facility being constructed by TotalEnergies SE in the Afungi region, an area plagued by a violent Islamist insurgency.
Originally approved for $5 billion during President Donald Trump’s term in 2019, the financing was designed to create thousands of American jobs through the export of necessary equipment and services. This revision to $4.7 billion still marks it as the largest deal in the bank’s history.
The project faced substantial setbacks when Islamist militants overran the region in 2021, resulting in over 1,000 casualties and prompting TotalEnergies to cease operations. Investigative reports revealed grave human rights abuses, including abduction and torture by government forces assigned to safeguard the Total project. Judicial investigations into these incidents are in progress, although Total has refuted any allegations of misconduct.
The approval of a $4.7 billion loan underscored the U.S. Government’s alignment with fossil fuel interests amid ongoing concerns regarding human rights abuses linked to the project in Mozambique. Despite the potential for job creation, the project’s controversial backdrop raises ethical questions regarding international financing in regions experiencing violence and unrest. The long-term implications for both the project and Ethiopia’s stability remain to be seen.
Original Source: www.eenews.net
