EU commits EUR 15m for renewable energy entrepreneurs and companies in Mozambique
The launch of the ElectriFI Country Window for Mozambique, a tailored EUR 15 million package funded by the EU to invest in early-stage renewable energy companies active in the country, took place on Thursday 7 December in Maputo, within the business conference Renováveis em Moçambique 2022.
With only a bit more of 40% of households having access to electricity, Mozambique remains largely unelectrified. The ambitious targets set by the government include the connection of the entire population to electricity (off and on-grid) by 2030. The ElectriFI Country Window for Mozambique funded by the EU in close cooperation with the national government, offers a suitable instrument to meet those ambitions while contributing to the Sustainable Development Goals.
The Country Window package, consisting in a EUR 15 million envelope, funded under the European Development Fund and from the programme PROMOVE Energia managed by the EU Delegation with the Government of Mozambique aims to boost access to energy in rural areas.
The purpose of the dedicated funding for Mozambique is to allow the private sector to contribute to rural development through electrification. The Country Window should allow us to finance up to 10 projects dedicated to accelerating access to clean energy, in a sustainable and inclusive way. The regions of Nampula and Zambezia are prime examples of areas where the financing could be deployed.
“We are very glad that Mozambique joins today the ElectriFI family together with many other African countries. Out of the 113 million EUR of committed investments through country windows, we are proud to say that 75% are for investment projects in Sub-Saharan Africa! In adhering to this initiative, Mozambique, national private sector and international investors will take advantage from the network of 15 European Development Finance Institutions (EDFIs) from EU Member States, which have joined forces and are jointly managing this initiative. This great opportunity will help channel liquidity from DFIs and commercial funders to the private sector in Mozambique” said Antonino Maggiore, European Union Ambassador to the Republic of Mozambique
The ElectriFI Country Window for Mozambique offers an innovative blending instrument to support the risk capital needs of early-stage companies who via the support of the ElectriFI facility can further build their track record, strengthen their operations and deliver on sustainable impact. The new Country Window also includes a EUR 500,000 dedicated budget for Technical Assistance to help support existing and potential ElectriFI clients in Mozambique.
“The ElectriFI country window in Mozambique is the result of strategic partnerships established in a Team Europe approach. By offering financing and assistance to renewable energy companies, we aim to contribute to Mozambique’s electrification, job creation and climate mitigation efforts. In turn, we aim to mobilise additional private investors to commit over EUR 25 million in those companies”, explained Corentin Billiet, ElectriFI Senior Investment Officer at EDFI MC.
By unlocking Mozambican’s economic, social and environmental development opportunities across various value chains, the Country Window will contribute to national implementation plans to reach the Sustainable Development Goals and the national programme “Energia para Todos” in particular.
……………………………………………………………..
Notes to Editors:
- About EDFI ElectriFI
EDFI ElectriFI is an EU-funded impact investment facility, financing early-stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets.
EDFI ElectriFI, is managed by the EDFI Management Company, a company established by the 15 European Development Finance Institutions (DFIs). https://www.electrifi.eu/
- Media contact:
Mathilde Poncelet, EDFI MC: mathilde.poncelet@edfi.eu