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World Bank Flags $50B Mozambique LNG Project Risk Over Debt Crisis

Bloomberg Markets •
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The World Bank issued a stark warning that Mozambique's persistent debt-fueled spending threatens the viability of its ambitious $50 billion liquefied natural gas (LNG) project, a cornerstone of the government's strategy to revive its struggling economy. According to the financial institution, the country's current economic trajectory, characterized by significant budget deficits, poses a severe risk to the massive energy initiative, potentially derailing a project crucial for national development. This warning represents one of the most explicit cautions yet regarding Mozambique's long-term financial stability and its ability to attract the substantial foreign investment required for such a colossal undertaking. The $50 billion figure underscores the immense scale and high stakes involved, highlighting how domestic fiscal mismanagement could imperil billions in potential revenue and long-term economic prospects.