China’s investment of $6 billion in the Rovuma/Gauteng pipeline, will help Mozambique’s industrialization strategy and reinforce the Chinese existence in the country, Macauhub reports.

As reported last month, the feasibility study of the 2,600km pipeline is to be performed by the China Petroleum Pipeline Bureau. Upon agreement of the investment decision, 70% of the financing will be provided by the Chinese financial institutions.

According to Aubrey Hruby, of the Atlantic Council Africa Centre, the Chinese participation in the project makes it a winner for the three parties involved.

“It is a gain for China because the Chinese contractors get the business, it is a gain for South Africa and Mozambique because they secure the gas they need and it is a win for Zimbabwe and Zambia, because they also need energy,” he said.

The delegation headed by CPP includes SACOIL, ENH and Profin and will contest with Gasnosu, part of South Africa’s Gigajoule and backed by Eskom, the state electricity company of South Africa.

China has assumed a vital role among Mozambique’s key international partners and is expected to increase.

The African Renaissance Pipeline in its existing design offers branches to the two neighboring countries, granting them access to a significant energy source while Mozambique receives income from the sale of and also get to use it in industrialization projects throughout the country.

Anita Fatunji