Mozambique is preparing to establish a Strategic Financing Coalition for Off-Grid Electrification, aimed at mobilizing resources to accelerate access to energy in rural areas. The initiative was announced in New York during a high-level roundtable meeting on the sidelines of the 81st session of the United Nations General Assembly. The meeting was led by the Mozambican government, with support from Sustainable Energy for All (SEforALL) and Enabel.
The coalition will bring together development financial institutions, climate and energy funds, development partners, foundations, and private investors. The goal is to create a national financial architecture that combines grants, guarantees, concessional capital, and commercial financing. This will enable Mozambique to leverage resources to achieve its off-grid electrification targets.
According to the Mozambican government's estimates, around 2.5 million off-grid connections are needed, requiring an investment of approximately $1.1 billion. To support mini-grids and productive uses of energy, Mozambique has already mobilized €42 million from the Green Climate Fund and €20 million from the European Union.
The National Electrification Path at the Lowest Cost, led by the Fundo Nacional de Energia (FUNAE), aims to accelerate access to energy in rural areas. The initiative will focus on off-grid solutions, including mini-grids and standalone systems. This approach is expected to provide energy access to thousands of households and businesses in rural areas.
The Mozambican government is working closely with international partners to ensure the success of the coalition. SEforALL and Enabel are providing technical assistance and support to help mobilize resources and build the capacity of local institutions. Other development partners, including the United Nations, are also expected to play a key role in the coalition.
The establishment of the coalition is a significant step towards achieving Mozambique's energy access targets. The country aims to increase access to electricity, particularly in rural areas, where many communities lack access to modern energy services. The coalition will help to mobilize the necessary resources to achieve this goal.
The coalition's success will depend on effective coordination and collaboration among its members. Mozambique's experience in mobilizing resources for energy access will be crucial in ensuring the coalition's success. With the right approach and support, the coalition can make a significant impact on energy access in Mozambique.
Key points
- Mozambique needs $1.1 billion to achieve 2.5 million off-grid connections.
- The country has already mobilized €42 million from the Green Climate Fund and €20 million from the European Union.
- The coalition will combine grants, guarantees, concessional capital, and commercial financing to support off-grid electrification.
