Mozambique’s strong economic performance of annual 7.2% growth over the past decade has been fueled by foreign direct investment in agriculture and infrastructure. Economic growth, however, has not been equitable with a relatively unchanged national poverty rate that sees 39% of the total population living in rural poverty.

In 2013, the Government of Mozambique (GoM) adopted the Green Economy Action Plan which consists of three key pillars: sustainable infrastructure; efficient and sustainable use of resources; and strengthening resilience and adaptability. These pillars serve as entry points for green growth. The country’s abundant natural energy resources represent a significant opportunity for the GoM to address the country’s persistent energy challenges and to utilize resources sustainably to deliver benefits for the whole population.

At present, approximately 45% of the population has access to electricity, with biomass representing 80% of total energy consumption. Therefore, addressing institutional and financial barriers to increase energy supply and access remains a high priority. While much work has been done to improve electricity transmission to grid-connected locales, off-grid rural communities continue to face low rates of electrification and therefore limited access to markets and employment opportunities.