Natural Gas from Pande and Temane: economic impact on poverty reduction in Mozambique 2004-2014

Abstract

This study analyses the economic impact of natural gas exploration in the Pande and Temane fields on poverty reduction in Inhambane province, Mozambique, between 2004 and 2014. The research contributes to the debate on the effectiveness of natural resource exploitation as a driver of sustainable economic development, particularly in African countries that, despite their resource wealth, continue to experience persistent social inequality. Using a mixed methodological approach, combining quantitative and qualitative techniques, the study evaluates the relationship between economic growth and social progress, focusing on the Gross Domestic Product (GDP) by product and the Human Development Index (HDI). Results indicate a significant increase in GDP (from 747.99 to 14,713.44 million meticais) and a positive evolution in HDI (from 0.402 to 0.515). The Pearson correlation coefficient (0.81) shows a strong linear relationship between the two variables, with 65.13% of HDI variation explained by GDP growth. However, the findings suggest that the economic gains were not fully converted into social progress due to limited wealth redistribution and barriers in access to basic services. The study concludes that while economic growth is necessary, it is not sufficient on its own to reduce poverty. It highlights the need for integrated public policies aimed at social inclusion, equitable wealth distribution, and sustainable human development.