Mozambique seeks Funding Coalition to expand off-grid power
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President Daniel Chapo of Mozambique announced the country is forming a Strategic Coalition to attract financing for off-grid electrification projects.
The government intends to combine grants, loans, and other financial tools to lower investment risks and encourage private sector involvement in bringing power to more communities. This initiative responds to a national plan identifying the need for approximately 2.5 million off-grid connections, which will require roughly $1.1 billion in investment.
Mozambique has already secured €42 million from the Green Climate Fund and €20 million from the European Union to support mini-grids and productive energy uses, working with the Belgian Agency for International Cooperation, Enabel. The partnership between Enabel and FUNAE, Mozambique’s Energy Fund, has been ongoing for over a decade, focusing on rural electrification and strengthening institutional capacity.
To solidify this effort, FUNAE, Enabel, and Sustainable Energy for All signed a Letter of Intent to collaborate on a program approved by the Green Climate Fund. FUNAE will implement the project, Enabel will provide financial oversight and technical assistance, and Sustainable Energy for All will support financing management and results monitoring. Damilola Ogunbiyi, of Sustainable Energy for All, stated Mozambique must mobilize larger-scale financing and coordination to ensure energy access contributes to economic growth.
