Mozambique and Partners Unveil Landmark Rural Electrification Project to Boost Climate Resilience and Cut Emissions

Funded by the Green Climate Fund (GCF) and jointly implemented by Enabel (the Belgian Agency for International Cooperation), Sustainable Energy for All (SEforALL) and FUNAE (Mozambique National Energy Fund), the initiative will expand energy access, strengthen rural economies and avoid an estimated 399,131 tonnes of CO₂e emissions in Mozambique.

Maputo, Mozambique | 26 June 2026 ― Mozambique is taking a major step toward climate-resilient development with the launch of a 7-year rural electrification initiative that will expand access to clean energy, strengthen rural livelihoods and avoid an estimated 399,131 tonnes of carbon dioxide equivalent emissions over its lifetime. The project reflects a long-term commitment by national and international partners to advance Mozambique's energy transition while helping vulnerable communities adapt to growing climate risks.

Among the world’s most climate-vulnerable countries, Mozambique faces increasing exposure to floods, droughts, tropical cyclones and extreme temperatures. These climate shocks disproportionately affect rural communities, which account for more than 60 percent of the population and rely heavily on rain-fed agriculture and traditional biomass for energy.

In response to these challenges, the new project funded by the Green Climate Fund (GCF) and implemented by Enabel, the Belgian Agency for International Cooperation; FUNAE, Mozambique’s National Energy Fund which is the country’s implementation agency for off-grid and rural electrification affairs; and Sustainable Energy for All (SEforALL), the energy-focused UN-aligned organization, will impact 225,000 people (52% of which being women) through solar-powered mini-grids across rural communities while supporting the adoption of Productive Uses of Renewable Energy (PURE) technologies that improve livelihoods and reduce climate vulnerability.

Representatives from the three organizations emphasized the importance of coordinated action and country-led implementation in achieving Mozambique’s ambitious energy, development and climate goals.

Lolade Abiola, Chief of Staff at Sustainable Energy for All said:

“By aligning renewable energy deployment with climate-resilient economic development, the project offers a scalable and country-owned model for inclusive green growth in Mozambique. Designed with long-term sustainability in mind, the project adopts a performance-based, market-driven financing approach. Mini-grid developers will co-finance a portion of capital costs, while PURE incentives will be tailored to evolving market conditions. These mechanisms are intended to de-risk early-stage investments, stimulate private sector participation, and gradually reduce dependence on concessional finance.”

Mety Gondola, CEO of FUNAE during his speech at the subsidiary agreement signing ceremony said:

 “…this project is the start of the Government’s commitment to making a difference in the lives of local residents. Energy will act as a platform through which social transformation can be achieved.”

While praising the Government’s leadership and coordination efforts that enabled this initiative, Adriaan Tas, Country Director of Enabel in Mozambique said:  

“What makes this project exciting is that it treats rural energy demand as a market to be built, and it asks the private sector to build it with us. Productive use of energy is where access becomes income, and where climate finance starts paying for itself in livelihoods.” 

The project will support rural Mozambicans to gain increased resilience through improved food and water security, diversified livelihoods, and enhanced access to health and education services. The initiative will also support the deployment of approximately 300 to 400 climate-smart PURE solutions, helping to create more resilient and productive rural value chains.

The project will also operationalize Mozambique’s new mini-grid regulatory framework by introducing competitive procurement processes, streamlining licensing procedures and reinforcing regulatory compliance across project sites.

The project forms part of a broader government-led Country Platform that brings together public institutions, development partners, and financiers to align policies, coordinate investments, and streamline technical support. This collaborative mechanism is expected to unlock a new level of national transformation and accelerate progress toward Mozambique’s updated Nationally Determined Contribution (NDC), Energy Transition Strategy and off-grid electrification targets.

About Enabel
Enabel is the Belgian agency for international cooperation. With over 25 years of experience and managing more than 200 projects in more than twenty countries, in Europe, Africa and the Middle East, together with our partners, we develop ideas and implement projects addressing urgent global challenges, such as climate change, social and economic inequalities, demographic trends, peace and security.

About Sustainable Energy for All
Sustainable Energy for All has a global mandate to accelerate progress on the energy transition in emerging and developing countries. Hosted by UNOPS, we work at the intersection of energy, climate and development, partnering with governments and organizations worldwide to double energy efficiency, significantly expand renewable energy, combat climate change and spur economic growth across the world. Learn more about our work at www.SEforALL.org    

Media Contacts:   
Sherry Kennedy, Director of Communications: Sherry.Kennedy@SEforALL.org; Media@SEforALL.org | +43 676 486 2425 
Robert Magori, Senior Communications Specialist: Robert.Magori@seforall.org | +43 676 846 727 240