UK strengthens investments in Mozambique’s energy sector

UK strengthens investments in Mozambique’s energy sector

The first edition of the Mozambique Week in the United Kingdom took place in London and Glasgow, with representatives from the Mozambican Government and the private sector from both countries. The Mozambican delegation was headed by His Excellency Carlos Zacarias, Minister of Mineral Resources and Energy.

The 3-day event focused on Agri-tech, Energy with a focus on clean energy and Green Economy, exploring investment opportunities for both countries. More than 100 companies attended the event in person and virtually, representing the private sectors of Mozambique and the UK.

Mozambique is a growing trading partner for the UK. Total trade increased by 36% in 2020/21. There are significant investment opportunities in the areas of energy, and agriculture. UK companies are among the top employers and taxpayers in Mozambique.

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Key announcements made during the conference were:

Globeleq, and its local partner Source Energia, announced that the development of the Namaacha Wind project is well underway in Mozambique. The project will be the first commercial wind farm in Mozambique and will provide up to 120MW of clean energy. Terms are in the process of being agreed with EDM (Electricidade de Moçambique). The project is estimated to cost up to £180m and is due to go into construction in the second half of 2023.
Solarcentury Africa and its local partners RESA and Checunda, have signed a joint development agreement to develop SunMoz’s 30MW solar PV project in Chimuara, Zambézia province, to provide clean, reliable power to EDM (Electricidade de Moçambique).
The British High Commission in Maputo announced a pipeline of investment opportunities in Mozambique in the areas of energy, agriculture and extractive sector, worth over £ 500 million.

Minister Carlos Zacarias stated: “The Government is investing in expanding access to energy for Mozambicans. As an example, under a presidential initiative, we are investing in electrical infrastructure that will allow all administrative posts to be electrified by 2024”. “We count on the participation of partners such as the United Kingdom, which has played a crucial role in the materialisation of these and other electrification projects.”

The investments announced at the event will support the development of the renewable energy potential in Mozambique. In addition to UK support such as helping and facilitating private sector investment to implement off-grid solutions and technologies to bring clean energy to rural communities through the BRILHO programme.

The British High Commissioner for Mozambique, NneNne Iwuji, said: “Mozambique in the UK Week is a significant milestone for business partnerships between the UK and Mozambique”.”Over the three days, we were able to highlight and identify business and investment opportunities for both countries, as well as gain a better understanding of the elements needed to support successful investments and the impact they can have on Mozambique. We look forward to strengthening our business ties for mutual prosperity”.

The UK Department for International Trade is prioritising building strong business relationships in Africa, which have the potential to create, diversify and protect investment opportunities in Mozambique.
The event follows the UK-Africa Investment Summit held in London in 2020, where the two countries agreed to host Mozambique Week in the UK.