The Mozambican government has increased investment in infrastructure, improved the investment environment, and encouraged the development of resources such as minerals, energy, agriculture, forestry and fishery. The Export-Import Bank of Korea recently announced that it will provide US$500 million in financing support for a large-scale integrated LNG project in Mozambique, helping South Korean shipping companies to win a large order of LNG ships worth US$3 billion in Mozambique.

The Mozambique LNG project is led by France's Total, with a project investment of US$23.5 billion. This is the first land-based LNG development project in Mozambique. After completion, it will be able to produce approximately 12.9 million tons of LNG annually, equivalent to 23% of South Korea’s annual LNG imports.

Support Korean companies to enhance their global competitiveness

At present, Daewoo Construction and a group of South Korean small and medium-sized enterprises have obtained orders worth US$550 million for the Mozambique LNG project to participate in the construction of the LNG plant. The Export-Import Bank of Korea stated that the project is expected to create 1,300 jobs every year, while also exporting Korean construction materials to increase foreign exchange earnings.

On the other hand, the Export-Import Bank of Korea also stated that considering that two Korean shipping companies, Hyundai Heavy Industries and Samsung Heavy Industries, are negotiating an order for up to 17 LNG ships worth 3 billion U.S. dollars for the Mozambique LNG project, it is expected that this time The financing will help Korean shipping companies win LNG ship orders.

The Export-Import Bank of Korea believes that the bank’s participation in the Mozambique LNG project is of great significance, because Africa has huge growth potential and many countries are rich in resources. This project financing will help strengthen its influence in the African resource development financing market and increase the presence of Korean companies. Competitiveness in emerging markets. Due to the global economic impact brought about by the spread of the epidemic in 2020, local companies in Africa are facing difficulties, and this financing also coincides with this critical moment.

If you want an enterprise to gain an advantageous position in the competition, it is an important way to quickly improve its core competitiveness. Despite the challenges, the Export-Import Bank of Korea reiterated its willingness to continue to support Korean companies by providing timely financial assistance to enhance their global competitiveness. Editor/Sang Xiaomei