The US finances a major liquefied natural gas (LNG) project in northern Mozambique, which potentially opens new fronts in the rivalry between the United States and China in Africa. In order to support the export of US goods and services to construct an LNG facility on Mozambique’s Afungi Peninsula, the Export-Import Bank of the United States (Exim) approved a loan of US$ 4.7 billion, the largest direct credit for the bank history in Sub-Saharan Africa. The financing requires the provision of a loan guarantee for the purchase of American equipment used for the manufacture of LNG by the French oil firm Total.
The United States upgraded the governments of China and Russia which were both keen to finance the project in the South African country. The Belt and Road Initiative, China’s ambitious trade and infrastructure policy that funded road, hydroelectricity and rail transport construction across the continent, promoted ties between China and Africa.
Data Source: SCMP
