Controversy Surrounds U.S. Export-Import Bank’s Approval of Mozambique LNG Funding

The U.S. Export-Import Bank is poised to approve financing for Mozambique LNG, a project plagued by severe human rights concerns. Investigations by multiple countries into ongoing abuses have raised alarm, and critics argue that such funding prioritizes corporate interests over humanitarian needs. The project’s context of civil unrest further complicates its ethical implications.

The U.S. Export-Import Bank (EXIM) is set to approve a substantial financial package for Mozambique LNG, a project operated by Total Energies. However, there are significant concerns surrounding this undertaking, particularly regarding severe human rights violations associated with its security operations. Reports indicate that these issues have prompted investigations by various entities, including the Dutch government, the Mozambican Attorney General’s office, and the French state prosecutor, highlighting the serious implications of the situation.

Several investigations have been initiated: an independent inquiry by the Dutch government into human rights abuses, a case preparation by the Mozambican Attorney General against unknown individuals, and a legal investigation into Total for manslaughter connected to the 2021 Palma Massacre. Moreover, a London Coroner’s Court is set to investigate the murder of Philip Mawer, a subcontractor killed in the aforementioned incident.

Daniel Ribiero, Technical Coordinator of Friends of the Earth Mozambique, emphasized the contradictory nature of investing in such a project. He remarked on the concerning factors, saying, “The human rights violations, armed conflict, environmental impacts and risky economic projections of the Mozambique LNG project should have kept most sensible investors away.” Ribiero criticized the EXIM’s decision to approve $4.7 billion in financing for a French company, particularly in light of the Trump administration’s recent cuts to health sector aid in Mozambique.

Kate DeAngelis, Economic Policy Deputy Director for Friends of the Earth U.S., criticized the administration’s focus on funding fossil fuel industries. She stated, “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.” DeAngelis condemned this decision as a misuse of taxpayer dollars and a prioritization of wealthy corporations over humanitarian aid.

Simone Ogno from ReCommon pointed out the parallels between the approaches of Italy and the U.S., indicating that both countries had affirmed support for Mozambique LNG despite ongoing human rights concerns. Ogno noted, “US EXIM is today doing the same.” This indicates a troubling acceptance of transnational corporate interests over human rights considerations in Mozambique.

The Mozambique LNG project occurs in a context fraught with political unrest, with a weakened democratic process and significant public dissent. Since October 2024, government responses have been severe, resulting in over 314 fatalities and thousands of illegal detentions.

In summary, the impending approval of financing for Mozambique LNG by the U.S. Export-Import Bank occurs amidst serious human rights allegations and investigations. The project’s association with violence and governmental oppression raises ethical questions about corporate funding and human rights. Critics, including notable advocates from Friends of the Earth, denounce this financial support as an egregious misallocation of taxpayer resources, further exacerbating social and environmental concerns in Mozambique.

Original Source: foe.org