The Mozambican President, Daniel Chapo, announced the creation of a coalition to finance off-grid electrification and mobilize 966.5 million euros in investments needed to ensure universal access to energy in the country by 2030.
The announcement was made on Wednesday during a high-level roundtable under the theme “Financing the Next Phase: Risk Reduction in the Off-Grid Electrification Market in Mozambique,” according to a statement released today by the Presidency.
At that event, Daniel Chapo announced the Government’s intention to create a strategic coalition to finance off-grid electrification, aimed at mobilizing resources, reducing risks, and turning a portfolio of projects into bankable investments, with the goal of accelerating universal access to energy by 2030.
The meeting brought together representatives from development financial institutions, climate funds, development partners, foundations, and private investors.
According to the Presidency, the creation of the coalition arises in a context where the Government foresees about 2.5 million off-grid connections to reach the universal energy access target by the end of the decade.
“For this purpose, the Mozambican President indicated that it will be necessary to mobilize about 1.1 billion dollars [966.5 million euros] in investment,” the statement said.
Daniel Chapo noted that the country has already mobilized 47 million euros from the Green Climate Fund and 20 million euros from the European Union to support mini-grids and productive uses of energy, resources complemented by the support of the World Bank through the More Energy program, and by initiatives funded by German cooperation through the German Development Bank (KfW).
According to the head of state, the new coalition should bring together, under national leadership, the Government and its partners around the objectives of mobilizing resources, reducing risks, and turning off-grid electrification projects into concrete investment opportunities.
The first outcome of the initiative will be the development of a national financing roadmap, which should identify the priority portfolio of projects, the existing financing gaps, the main risks, the necessary instruments, and the responsibilities of each stakeholder.
To make the coalition operational, Daniel Chapo argued that interested institutions confirm their participation, identifying the risks, financial instruments, or market phases in which they can contribute. The President also called for the preparation of concrete financing proposals ahead of the United Nations Climate Change Conference in November 2027.
Daniel Chapo stressed that the strategy for expanding electrification combines extending the national grid with off-grid solutions, which currently already account for about 12% of the country’s electricity access. He added that the priority remains bringing energy to rural communities, where the majority of Mozambicans live.
He also highlighted the role of decentralized solutions in responding to extreme climate events, such as floods, inundations, and cyclones. According to him, isolated systems designed with resilience mechanisms can ensure energy supply in communities affected by failures in the national grid.
Additionally, he argued that access to energy must be linked to the economic and social development of communities, through its use in productive activities, including irrigation systems and food preservation.
Chapo added that the objective also includes creating an off-grid electrification market that is “financable, predictable and capable of growing at a national scale,” benefiting families and businesses, with special impact for youth and women.
