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Government Seeks Funding to Bring Electricity to Communities

Government Seeks Funding to Bring Electricity to Communities
By Osvaldo 2 min

The Mozambican Government is seeking new financing to accelerate the expansion of electricity access to communities that are still not connected to the national grid.

To achieve this, Mozambique plans to create a Strategic Coalition for Off-Grid Electrification Financing, bringing together development finance institutions, climate and energy funds, international partners, foundations and private investors.

The initiative was announced during a high-level roundtable held on the sidelines of the 81st Session of the United Nations General Assembly in New York, with support from Sustainable Energy for All (SEforALL) and the Belgian development agency Enabel.

The aim is to create financing mechanisms that can attract more investment into the sector, reduce risks for investors and support energy projects in areas that are not yet reached by the national electricity grid.

According to the Energy Fund (FUNAE), Mozambique needs to move away from isolated projects and establish a financing structure capable of supporting investments on a larger scale.

“Mozambique needs to move from isolated projects to a national financial architecture capable of supporting investments at scale,” said FUNAE Chairman Mety Oreste Gôndola.

He added that rural electrification should go beyond simply providing lighting, and should also help create jobs, generate income and support economic activity in rural communities.

Off-grid energy solutions are considered essential for reaching areas where extending the conventional electricity network is difficult or expensive.

The national electrification plan foresees around 2.5 million connections through these solutions, requiring an estimated investment of approximately USD 1.1 billion.

Mozambique has already mobilised international funding for some of these projects, including resources from the Green Climate Fund and the European Union to support mini-grids and productive uses of energy.

During the meeting in New York, FUNAE, Enabel and SEforALL also signed a Letter of Intent to strengthen cooperation in the implementation of rural electrification projects.

The three institutions are expected to work together on financing, technical assistance and project monitoring, in coordination with the Mozambican Government.

The strategy is intended to increase private-sector participation and accelerate electricity access in rural communities, particularly in areas where solutions such as solar mini-grids can serve as an alternative to extending the national grid.

#Energia#Governo Procura Dinheiro Para#Levar Energia#Coligação Estratégica de Financiamento da Electrificação#Fora da Rede#Comunidades#Rede#Governo
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