Mozambique to Form Strategic Financing Coalition to Accelerate Rural Electrification
Government-led initiative builds on Mission 300 and a landmark Green Climate Fund project to mobilize investment for universal energy access, rural development and climate resilience.
NEW YORK, 23 September 2026 — The Government of Mozambique today announced its intention to establish a Strategic Funding Coalition for Off-Grid Electrification, bringing together development finance institutions, climate and energy funds, philanthropies and private investors to coordinate and mobilize financing to accelerate rural electrification.
Announced during a high-level roundtable convened by the Government of Mozambique on the margins of the United Nations General Assembly and Climate Week NYC, the proposed coalition, supported by the UN through Sustainable Energy for All (SEforALL) and Enabel, the Belgian Agency for International Cooperation, will help implement Mozambique’s ambition to achieve universal electricity access by 2030, using renewable energy to drive economic development, industrialization and greater climate resilience.
Mozambique has already more than doubled electricity access, from 31 percent in 2018 to nearly 65 percent today. Its National Energy Compact targets 100 percent access by 2030, requiring an additional 4.9 million connections and aiming to mobilize USD 18.6 billion across the energy sector, including about USD 8.7 billion from the private sector.
Off-grid solutions will be critical to reaching this ambitious target. Mozambique’s National Geospatial Least-Cost Electrification Pathway, developed with support from SEforALL, identifies 2.5 million off-grid connections, requiring an estimated USD 1.1 billion in investment. The proposed coalition will develop a coordinated financing architecture to support the full deployment life-cycle of off-grid technologies, blending public and concessional resources with guarantees, results-based financing and commercial capital to de-risk investment and expand private-sector participation.
H.E. Daniel Chapo, President of the Republic of Mozambique, said:
“Mozambique is putting energy at the heart of our development. Our goal is to ensure that energy creates opportunity — powering businesses, strengthening agriculture, supporting industry and improving essential services. Through this coalition, we want to bring government and our partners around a common financing framework that can turn our considerable renewable energy potential into jobs, growth and greater resilience for our people.”
The initiative builds on reforms already underway to strengthen the market for private investment, including improved planning, sectoral coordination platforms, updated regulatory frameworks, competitive off-grid electrification concession tenders and financing mechanisms designed to support renewable energy companies. The National Energy Compact explicitly prioritizes dedicated credit lines, guarantee schemes and other instruments to address barriers including limited local-currency financing.
It also builds on the Green Climate Fund-supported PURE Mozambique Rural Climate Project, jointly implemented by FUNAE, Enabel and Sustainable Energy for All (SEforALL). The seven-year initiative will use solar-powered mini-grids and productive uses of renewable energy to benefit approximately 225,000 people, 52 percent of them women, strengthen rural livelihoods and avoid an estimated 399,131 tonnes of CO₂e emissions over its lifetime. The New York roundtable includes the signing of a Letter of Intent between FUNAE, Enabel and SEforALL to cooperate on delivery of the GCF-funded project.
Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, said:
“Mozambique has made significant energy access progress, and the next chapter must be about using energy to power economic growth. Achieving that ambition will require financing at a much greater scale and strong coordination between government, investors and partners. SEforALL is proud to support Mozambique in turning its energy ambitions into the foundation for lasting economic transformation through data-backed strategies.”
Jean Van Wetter, CEO of Enabel, said:
“The PURE Mozambique project is already showing the direction of travel: rural electrification must go beyond connections to create productive economies and resilient communities. The proposed coalition allows us to take that approach to scale, combining climate and development finance with private investment to build a sustainable market for rural energy.”
As its first action, the proposed coalition will embark on a nine-month process to co-develop a National Off-Grid Financing Roadmap, identifying financing gaps, de-risking mechanisms and opportunities to mobilize greater public and private capital. The Government and its partners are targeting a public launch of the roadmap and associated funding announcements at COP32 in November 2027.
Mozambique’s broader energy ambition extends beyond universal access. Renewable energy currently accounts for 78.4 percent of the country’s generation mix, with the Government targeting 80.6 percent by 2032 and positioning Mozambique as a regional energy hub that can use its resources to support industrial growth, job creation and Southern Africa’s wider energy transition. The country also plans to extend clean cooking solutions to 54 percent of the population by 2030, up from approximately 17 percent today.
Notes to Editor:
About FUNAE
FUNAE, FP – the Energy Fund of Mozambique – is a public institution that promotes, finances and implements energy access projects across Mozambique, particularly in rural and underserved areas. Together with government institutions, development partners and the private sector, FUNAE develops and delivers initiatives in rural electrification, renewable energy, clean cooking, productive use of energy and other solutions that contribute to universal, sustainable and inclusive energy access. Sobre Nós – Funae
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 and implement projects addressing urgent global challenges, such as climate change, social and economic inequalities, demographic trends, peace and security. https://enabel.be/
About Sustainable Energy for All
Sustainable Energy for All (SEforALL) is an international organisation, hosted by UNOPS, that partners with governments and stakeholders to accelerate sustainable energy transitions that improve lives, create jobs, strengthen economies and combat climate change. https://www.seforall.org/
Media Contacts
SEforALL: Sherry Kennedy, Director of Communications: Sherry.Kennedy@SEforALL.org / Media@SEforALL.org | +43 676 486 2425
Enabel: Velsoma Cumbana, National Institutional Communication Officer: velsoma.cumbana@enabel.be | +258 82 031 7434
