Mozambique and Germany together for renewable energy

Mozambique and Germany together for renewable energy

The German International Cooperation Agency will support Mozambique with a € 3 million renewable energy fund. The goal is to help families that still depend on coal and firewood, for example.

Mozambique and Germany are promoting a new fund in Maputo city on Wednesday (31.07), with funds of around three million euros, so that the most disadvantaged populations can have access to renewable energy.

This initiative aims to “accelerate energy access for millions of Mozambicans,” the Foundation for Community Development (FDC) said in a statement. The project is developed jointly with the German International Cooperation Agency (GIZ).

In addition to access to renewable energy, these two institutions want this fund to also serve to promote private sector development and expansion, encourage female entrepreneurship and provide rapid response to humanitarian crises.

In the press release it was also stressed that this initiative serves as “an answer to the need to propose alternatives to poverty reduction by encouraging economic growth in the rural, urban and periurban areas of the country.”

Staged Financing

This funding will be available in three windows. The first, “access”, to promote modern renewable energy solutions to households outside the national grid through improved stoves and photovoltaic systems.

The second “productive use” window is intended to develop photovoltaic solar solutions and power equipment for commercial and agricultural businesses in rural areas exclusively.

The third window is “humanitarian” and aims to spread improved stoves and photovoltaic solar solutions to vulnerable families.

Initial humanitarian window funds are expected to be spent only in the regions most affected by cyclone Idai, which hit Manica and Sofala provinces in March this year.

Energy sources

In Mozambique most families still use firewood and charcoal as their main sources of energy for cooking, heating and lighting their homes. This still causes great demand for these two types of fuel for a home to sustain itself, but it is one of the main causes of environmental and forest degradation in the country. Only 28% of the population has access to the electricity grid. In rural areas only 5% of the population has access to the national electricity grid.

Source: Deutsche Welle