On March 19, the Swedish Ambassador Marie Andersson de Frutos together with the CEO of Electricidade de Moçambique (EDM) Mateus Magala - launched a facility for project preparation in the Energy Sector of Mozambique. The facility – which will bring a support of 388 Million Meticais to EDM during the period of 2017-2021, has as its main objective to speed up the development of electricity generation based on renewable energy sources - such as hydropower, solar and wind. The launch took place at EDMs head office.
The agreement on the facility, which was signed in December 2017 by the Embassy of Sweden and the Ministry of Foreign Affairs in Mozambique, has EDM as implementing organisation. In addition to renewable energy, the intervention will make room for studies related to energy efficiency, capacity building, and Environment and Social Impact Assessments (ESIA), with a specific focus on gender and sustainable business.
The cooperation between the two countries is based on 40 years of un-broken Swedish support with the aim to sustainably increase access to modern energy, in particular to Mozambicans in rural areas. EDM as the main actor has during the last decades managed to substantially increase the electricity services through extension of the national grid.
Still, in Mozambique today 20 million people are without modern energy services, which constitute a major bottle-neck for poor women and men’s ability to escape poverty. Sweden has therefore decided on a support to assist EDM in reaching its ambitious objective of universal access by 2030. Through the agreement, which builds on previous support to Strategic Studies (2010-2018), the partners have agreed on working even harder together, to speed up supply of electricity from renewable energy sources, and support the development of EDM towards a sustainable business.
- For Sweden it is fundamental that the Sustainable Development Goals and the Paris Agreement on Climate, transforms into reality. It should not only end up in empty words and declarations. We therefore need to find new innovative ways of cooperation, said the Swedish Ambassador Marie Andersson de Frutos, and continues, sustainable business is an important concept for Sweden, and Swedish companies enjoy a reputation of being frontrunners on sustainability and clean technology. Sweden was also among the first countries in the world to adopt a policy for sustainable business, including a National Action Plan on Business and Human Rights.
For Mozambique to continue the development of increased access to modern energy, new generation capacity is required. However, to exploit sustainable resources is very capital-intensive. Public finances and international development assistance will clearly not be sufficient to finance needed investments, and greatly increased shares of private and institutional capital will be required. According to the CEO of EDM Dr. Magala, the facility therefore comes very timely for EDM as it enables the development towards a pipeline of bankable projects, which can further be advanced with potential financing partners and project developers. On behalf of EDM and the Government of Mozambique, Dr. Magala further expressed his gratitude to the long-term partnership with Sweden.