The EU-funded Electrification Finance Initiative (ElectriFI) is expanding in Africa. Managed by EDFI Management Company, the initiative finances start-up companies and private projects that provide access to clean electricity while increasing the installed power capacity of the beneficiary countries.
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.
While some economists may argue that less developed countries can essentially “skip” over industrialization by investing in human capital and governance, Mozambique’s economic welfare has lagged in terms of progress with respect to the developing world, partly because of its lack of accessible education and healthcare.
The adverse effects of climate change have contributed massively to Mozambique’s lack of economic development, as its average annual losses from cyclones are approximately US$440 million. In fact, Mozambique is estimated to have lost 12.6 percent of its GDP to the climate change crisis in 2019 alone.
The funding will assist the national electricity company to provide financial support for technical, economic, environmental and social feasibility studies for the development of a solar floating power plant in Chicamba reservoir. In addition, it will support funding for a feasibility study for Energy Battery Systems Storage in up to 10 sites.
By 2032, focusing on renewables supported by flexible gas would generate savings of 25 million tons of CO2 emissions and $2 billion dollars in total costs when compared to a coal-based scenario.