Mozambique will require more than $80 billion to implement its long-term energy transition strategy through 2050, as the government expands off-grid electrification efforts to reach millions still without reliable power.
Speaking at the opening of the 2nd Biannual Off-Grid Energy Forum, the president of the Mozambican Renewable Energy Association (AMER), Ricardo Pereira, said the funding will support major projects across power, transport and industry.
Pereira noted that the plan is central to Mozambique’s ambition to accelerate clean energy access and reduce dependence on large hydropower facilities.
“We have almost 40% of our population that we have to work to provide access to over the next five years,” Pereira said. “An investment of more than $80 billion is estimated for the energy transition strategy through 2050,” The president said.
He added that the funding requirement reflects both the scale of rural electrification needs and the country’s production targets for a low-carbon future.
Mozambique has installed over 700,000 domestic solar systems since 2024, benefiting millions. It also plans to have more than 111 solar and hydro mini grids operating by year end, producing 11.5 megawatts.
Sector growth supported by new models
According to him, much of this expansion has been driven by the Mozambican Energy Fund (FUNAE), which has played a central role in deploying off-grid systems in areas beyond the reach of national transmission lines.
The sector is incorporating digital-wallet payments and hybrid private-management models to support off-grid projects.
“This growth has been accompanied by significant institutional innovation, citing the adoption of digital-wallet payment systems and hybrid private-management structures that allow communities and companies to jointly operate mini-grid assets.
“For home systems, one of the major challenges at the moment is financing, the mechanisms and incentives available,” Pereira said.
The AMER president warned that uncertainties over tariffs, concessions, and regulatory transparency are slowing private-sector participation in the sector.
He also pointed to the rising issue of electronic waste, as older solar components reach the end of their lifespan and require proper disposal to protect the environment.
Electrification rising, but significant gaps persist
Mozambique has almost doubled its electrification rate over the past decade, but access remains deeply uneven.
Following a data report from the International Energy Agency (IEA) published by Lusa, more than half of Mozambicans still lacked electricity in 2022.
Access to clean cooking energy remains particularly limited, with only 7% of the population using modern solutions.
The IEA has urged Mozambique to enhance long-term planning, strengthen its energy data systems and implement transparent monitoring tools designed to serve a rapidly growing population.
The agency notes that while Mozambique continues to rely heavily on hydropower, other renewable resources including wind and large-scale solar remain largely untapped.
The country’s Energy Transition Strategy, approved in 2023, targets universal electricity access by 2030 but faces infrastructure constraints and a widening financing gap.
Government urges acceleration
National Energy Director Marcelina Mataveia said the Maputo forum serves as an important platform for aligning political and strategic thinking around off-grid development.
She called for faster implementation of financing mechanisms and more coordination across institutions.
“The mechanisms should enable sustainable development using low-carbon technologies while generating social, economic and inclusive growth,” she said.
The World Bank and African Development Bank have in recent times increased funding for off-grid solar and mini-grid projects across southern Africa, aiming to boost climate resilience and expand rural access.
For instance, the World Bank Board of Directors approved the Accelerating Sustainable & Clean Energy Access Transformation (ASCENT) project to expand sustainable energy access across Mozambique.
The initiative will be financed by a $100 million World Bank grant and $31 million from the Mozambique Energy for All Multi-Donor Trust Fund, including contributions from Sweden ($13 million) and Norway ($18 million).
It aims to improve energy access for households, businesses, and health and education facilities across urban, peri-urban, rural, and remote areas.
Despite Africa’s abundant clean energy resources, the continent’s renewable transition remains uneven, with the majority of projects concentrated in Northern and Southern Africa.
