The Swedish government will provide a total of 3.4 million euros (230.6 million meticals) to finance renewable energy projects in Mozambique, as part of the 6th edition of the Beyond the Grid Fund for Africa (BGFA), an initiative that will be launched in the first half of July.
According to information shared with Diário Económico, this edition will favour projects that provide solutions for the productive use of energy, from solar-powered irrigation systems, refrigeration units for food preservation, electric fishing boats, agricultural processing equipment and e-mobility alternatives, such as electric bicycles and scooters.
The money will be administered by the Nordic Environment Finance Corporation (Nefco) and interested parties will be able to access the programme through a simplified, single-stage application process, which will make it easier for all for-profit energy service providers to participate.
Tina Moller, Programme Manager at Nefco and BGFA Coordinator, explained that the funding will be structured to support the expansion of renewable energy solutions, through a results-based model in which payments are linked to the achievement of predefined targets and may include an advance of up to 30%.
“For-profit energy service providers with a proven track record in implementing clean energy solutions, especially those already operating in Mozambique or other parts of sub-Saharan Africa, will be eligible to apply for the 6th edition of the BGFA,” he added.
“Companies must demonstrate potential for scalability and impact, ensuring that their solutions can generate significant socio-economic benefits. To promote this opportunity, the BGFA, in partnership with the Mozambican Renewable Energy Association (AMER), will organise a hybrid event on 30 July to provide potential applicants with a detailed overview of the application process, eligibility criteria and benefits,” he said.
“For-profit energy service providers with a proven track record in implementing clean energy solutions, especially those already operating in Mozambique or other parts of sub-Saharan Africa, will be eligible to apply for the 6th edition of the BGFA.”
According to Tina Möller, the launch of the call for funding is a significant milestone in the collective journey towards sustainable energy solutions in the country. “By harnessing the power of renewables, we can unlock new economic opportunities, increase productivity and improve the quality of life for countless Mozambicans.”
What is the Nordic Environment Finance Corporation (Nefco)?
The Nordic Environment Finance Corporation (NEFCO) was set up by the Nordic governments in 1990 to support the Nordic countries’ efforts to raise environmental awareness in Central and Eastern Europe by financing projects that would reduce environmentally damaging emissions. NEFCO has participated in the development of innovative financing instruments designed to improve the environment and combat climate change.
It usually works in close partnership with its private and public investors. One of the applicant’s current priorities is to promote green growth and further prevent climate change by focussing on interventions related to renewable energy, energy efficiency and the reduction of short-lived climate pollutants, having a positive effect on adaptation and mitigation.
What is the Beyond the Grid Fund for Africa (BGFA)?
The BGFA was set up at the initiative of the Government of Sweden with the aim of incentivising the private sector to provide sustainable, affordable, clean and high-quality energy services to people in need in off-grid rural areas.