Mozambique’s Energy Fund (FUNAE) intends to transfer management of the Mozambique Solar Panel Factory to a private operator, after the facility — inaugurated in 2013 and located at the Beluluane Industrial Park in Boane district, Maputo province — was idled in 2022 following a loss of competitiveness against imported equipment, particularly from China.
The announcement was made on Saturday, 1 August, by FUNAE Board Chairman Mety Gondola during a visit to the industrial unit.
‘If the private sector is already showing signs that it can take on this responsibility, we must gradually make the transition, so that our role becomes more one of resource mobilisation, setting criteria, and making those resources available to the private sector through transparent processes,’ Gondola said.
According to the chairman, management of the factory ‘does not necessarily have to be carried out by FUNAE,’ adding that the infrastructure could operate more efficiently under private administration through a programme contract that preserves the strategic objectives set by the government.
‘We believe it will be better if a private operator is running it, within a programme contract, naturally, and in a process where we, as government, have the vision and know what the factory’s utility should be for the country, but with management already outsourced,’ he added.
The intention to concession the unit follows FUNAE’s launch, in November 2025, of a public tender to select a national or foreign company to operate and manage the factory with the aim of improving its efficiency.
Data published by the institution in July indicate that the factory’s idling represents an estimated annual fixed cost of 18.75 million meticais. The unit has the capacity to produce approximately 40 panels per day, with a maximum output of 270 watts-peak and a unit cost of roughly 14,000 meticais per panel.
However, the market currently offers equipment with outputs of up to 610 watts-peak for approximately 15,000 meticais — a gap that underscores the need for technological modernisation if domestic production is to compete with imported panels.
FUNAE Moves to Strengthen Financing Role
Established in 1997, FUNAE is a public institution responsible for financing and implementing projects to expand energy access, particularly in rural areas and communities outside the National Electricity Grid. The institution has, however, been repositioning itself as a financing mobiliser and facilitator of private investment, progressively reducing its direct involvement in infrastructure operations.
In 2025, the fund announced it was preparing to transfer 40 mini-grids to private operators, retaining for itself the functions of technical assistance, supervision, and guaranteeing continuity and quality of services.
As part of the factory restructuring, workers were integrated into other areas within FUNAE. According to the unit’s director, Edson Mohanjane, approximately 40 employees were reassigned following a process of consultation and skills assessment.
‘The colleagues who were here were all placed within a process of consultation and verification of their competencies, and at this point they are working,’ Mohanjane said.
Mohanjane added that the transferred workers continue to carry out functions at FUNAE and have demonstrated commitment in their new roles.
‘They are working with dedication and with the promise that they will continue to work, and they have in fact demonstrated that commitment,’ he said.
Solar Market Valued at €286 Million
The potential reactivation of the factory takes place against a backdrop of growing electrification needs and an expanding renewable energy market in Mozambique.
The report ‘Renewables in Mozambique 2025’, produced by the Lusophone Renewable Energy Association and the Mozambican Renewable Energy Association, estimates the potential of the solar self-consumption market at 173 megawatts, valued at approximately €286 million.
In the off-grid segment, the identified potential reaches 34 megawatts, representing a market estimated at €147 million. The country also had 113 mini-grids with a combined installed capacity of 11.7 megawatts.
In 2025, grid-connected photovoltaic solar capacity stood at around 58 megawatts and is expected to increase to more than 1,080 megawatts by 2032. The national electrification rate reached 66.4%, following 436,000 new grid connections by EDM and a further 122,000 connections through off-grid solutions.
The Mozambique Solar Panel Factory was inaugurated in April 2013 with the objective of producing equipment locally for electrification projects, reducing dependence on imports, and developing national industrial capacity in the renewable energy sector.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/02/oilgas/renovaveis/funae-quer-concessionar-gestao-da-fabrica-de-paineis-solares-a-operador-privado/
