Andrew
Online Reporter
Zimbabwe and Mozambique have agreed on a deal in principle to jointly set up a natural gas extraction and processing operation in the Buzi and Temani area of Manica Province in Mozambique, near the Zimbabwean border.
The deal was discussed at length by President Mnangagwa and his counterpart, President Filipe Nyusi, during his recent visit to Mozambique.
If successful, the deal could see Zimbabwe significantly reducing its import bill on energy.
Apart from gas extraction, the operation will also see the processing of gas into petrol, diesel, fertiliser and other chemical products.
Zimbabwean’s Ambassador to Mozambique Victor Matemadanda told The Sunday Mail that Government officials from the sister republics are now working on the modalities of the deal.
“Manica Province is home to quite a lot of natural resources in Mozambique and gas is one of them,” he said.
“We obviously want gas as a country and up until now, we have been using a lot of money to import it.
“But in this arrangement, we will co-own the gas fields and we will do the extraction together as partners, meaning there is a potential to reduce our import bill on gas products.”
Ambassador Matemadanda said the deal represents strengthening bilateral ties and economic cooperation between Zimbabwe and Mozambique.
“The deal is quite exciting, it is an agreement that we guard jealously because it means a lot in terms of economic development for the two countries,” he said.
“It says a lot about the bilateral relations and the two principals have set the ball rolling. Government officials are already sorting out the details of the deal.”
Online Reporter