The suspension of work on the gas project led by the multinational Total after the attack on the Palma district had a direct negative impact estimated at $116 millionthe President of the Republic informed this Sunday.

"The suspension had a direct impact of about $116 million in turnover and 3,250 workers, including direct Total workers, had their contracts suspended," Filipe Nyusi said in a communication to the nation on terrorist armed violence in Cabo Delgado from the Presidency.

The attack on Palma, near the gas project under construction, occurred on March 24, causing dozens of deaths and injuries.

The district was home to the Total-led natural gas exploration project, the largest private investment in Africa to the tune of $25 billion, which has since been suspended due to insecurity in the region.

According to Filipe Nyusi, cited by Lusa, the attack affected the operations of at least 28 companies, 17 of which suffered extensive material damage, and the suspension of work will affect project deadlines.

"Total has suspended all project implementation activities, contracts with builders, suppliers of goods and services and labor. This measure will result in the delay of the beginning of the exploration of liquefied gas," said Filipe Nyusi, adding that the disbursement of the first financing of the project was suspended.

"Violence destabilizes institutions and economic activity, reducing investor confidence because of the perception of associated risks," he added.

According to Mozambican head of state, in all districts affected by armed violence since 2017, mining activity has been completely paralyzed and agriculture has become risky, which impacts families, mostly dependent on the activity.

According to the President, in districts affected by attacks since 2017, at least 123,000 students have been forced to drop out of classes and several health facilities have been destroyed.

"At this very moment, the districts of Mocímboa da Praia, Quissanga, Macomia, Muidumbe and Palma do not have any health services," said Filipe Nyusi, adding that "the country cannot think slow or small to cope with this situation."

Armed groups have terrorized Cabo Delgado province since 2017, with some attacks claimed by the Islamic State group.