MANAGING NATURAL GAS RESOURCES FOR SDG ACCELERATION IN MOZAMBIQUE: AN ECONOMYWIDE MODELLING ASSESSMENT

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00098418 - SDG and Policy Coherence

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Overview

Mozambique is a country richly endowed with natural resources. It holds the third largest proven reserves of natural gas in the African continent, only after Nigeria and Algeria. It has vast deposits of coal in the central province of Tete. It holds around 5.5 percent of known global reserves of natural graphite and is the location of the world’s largest deposit of this mineral, found in the northern province of Cabo Delgado. Its natural resource wealth also includes 5.6 million hectares of arable land, 377,000 square kilometers of forests, over 2,500 kilometers of coastline, as well as important river systems, including the Zambezi basin. In addition, it holds rich deposits of anything from gemstones to gold, marble, limestone and iron ore. 

A number of modelling tools exist that can provide policymakers with this whole-of-system perspective, including system dynamics and computer general equilibrium models. While the latter have traditionally focused only on macroeconomic issues, recent developments in CGE modelling have seen extensions to incorporate human development and environmental concerns. These models can be used to run simulations on a variety of issues. From how external shocks may impact a country, in terms of likely DocuSign Envelope ID: 456B3C1C-49B0-4F30-8BCD-455B8A984683 DocuSign Envelope ID: 75553010-7858-49BA-9837-E1D0D9E9C9EEsocioeconomic and, potentially, environmental outcomes, to examining how different policy interventions available to government affect sustainable development prospects and outcomes.