In response to the U.S. Export-Import Bank (EXIM) reauthorizing a $4.7 billion loan to France’s TotalEnergies for the Afungi liquefied natural gas project in Mozambique’s conflict-affected region of Cabo Delgado, Maria Ramos, Associate Director for Natural Resource Justice, said:
“U.S. taxpayers should not be on the hook for TotalEnergies’ misadventures in Mozambique. Days before the loan was approved, French authorities announced an investigation into the company for potential manslaughter and a failure to assist people in danger during an insurgent attack near the projects in March 2021. The Attorney General of Mozambique has also opened a probe into similar allegations. While the company has welcomed the investigation by the Mozambican authorities, the U.S. government should not finance a project facing two serious investigations.
“These ongoing investigations aside, there is no feasible way for the U.S. government to have completed independent due diligence on the project. For one, U.S. government personnel have not been permitted to travel to Cabo Delgado, except in emergency situations. Moreover, the project has changed substantially in terms of security posture and financing since the loan was first authorized in 2019. The rushed nature of the EXIM board vote with only a 24-hour advance public notice did not provide a sufficient window for stakeholders like Oxfam to provide input and feedback.
“Oxfam has routinely called on EXIM to halt financing for this project until sufficient public assurance is provided that the security of all rights holders in the region can be guaranteed. We have also warned TotalEnergies extensively about the risks associated with the Afungi project since 2020. We are concerned that further development will exacerbate an already challenging security and human rights situation. Natural resources are a clear conflict accelerant and Oxfam has documented allegations of local corruption as well as torture and disappearances around the project site, including of activists.
“As the Wall Street Journal recently argued, private investors are clearly spooked by this project. And for good reason: conflict and human rights abuses - not to mention climate impacts - are not conduicive to responsible investing. Why not at least let the investigations conclude? Against this backdrop, this massive loan by EXIM is needlesly rushed and alarmingly risky.