Mozambique Energy: National electricity programme will cost over $5Bi

Mozambique’s national electricity programme, which seeks to guarantee access of the entire population to electricity by 2030, will cost over five billon US dollars, according to the National Director of Energy, Pascoal Bacelar.

Speaking to reporters on Monday, after President Filipe Nyusi had launched the programme, Bacelar said the sums needed “will be mobilised continually as the programme advances”.

He said the expansion does not necessarily imply increases in electricity tariffs, since “the sector will gain sustainability, and this is important to support much of the electrification”.

The technical part of the programme will be implemented by the publicly owned electricity company, EDM, and by the government’s Energy Fund (FUNAE). The World Bank, the European Union, Sweden and Norway are expected to provide about 223 million dollars in funding during the first three years of the programme.

Nyusi told the ceremony that access to a modern, safe and reliable source of electricity at a favourable price is the basic premise for breaking with the vicious cycle of poverty in Mozambique.

“Among the problems caused by a lack of electricity, we would point to the absence of social, agricultural and industrial stability, and the negative impact on education and the environment”, he said.

Electricity, Nyusi added, could contribute to improving the use of information and communication technologies, while the electrification of the country will help Mozambique comply with its regional, continental and international commitments.

“This is a contribution towards improving the quality of life of Mozambicans”, said the President. “The government’s five year programme advocates increased access to electrical power for the development of domestic activities”.

Nyusi said that universal access to electricity is one of the main requests made by the public during his visits to the provinces and districts.

The representative of the World Bank in Mozambique, Mark Lundell, confirmed to reporters that the country’s partners will finance the programme with about 200 million dollars in its first three years.

Mozambican electricity consumers to have yet another charge to pay

In this period, investments of over 225 million dollars are envisaged for the transmission and distribution of electricity. He noted that, despite progress in recent years, only 28 per cent of Mozambicans have access to energy from the national grid. This is lower than the average of 38 per cent for the countries of southern Africa.

The European Union representative in Mozambique, Antonio Sanchez, said access to energy is a cornerstone for the relations between Europe and Africa, and expansion of the national grid will contribute to job creation in Mozambique.

“The European Union will continue to support firmly the electrification of the country”, he promised. Source: AIM