Mozambique is among 17 African countries selected to benefit from the Hardest-to-Reach (H2R) initiative, led by the impact investment organization Acumen, with funding of 1.2 billion meticais (20 million dollars) provided by the UK development finance institution British International Investment (BII).
According to Engineering News, the initiative aims to expand access to clean, reliable, and affordable energy in remote areas of frontier economies, such as vast regions of Mozambique still off the national electricity grid.
The initiative’s financial vehicle, called H2R Amplify, was designed to support companies operating in the off-grid energy sector through impact-linked loans and structured financing based on receivables. Priority is given to countries with the lowest electrification rates in Sub-Saharan Africa, where coverage levels range from 12% to 59%.
With this BII funding, Acumen expects to reach over 50 million people, with 40 million gaining access to clean energy products for the first time. The initiative is also expected to avoid emissions of more than three million tons of carbon dioxide equivalent by replacing highly polluting fuels such as kerosene.
In addition to Mozambique, the project will cover countries including Benin, Burkina Faso, Burundi, Chad, Democratic Republic of the Congo, Guinea, Guinea-Bissau, Lesotho, Liberia, Malawi, Niger, Sierra Leone, Somalia, Togo, Uganda, and Zambia. According to Acumen, the H2R Amplify fund has already secured 7.7 billion meticais (123 million dollars) in commitments in its first fundraising phase and was designed to attract commercial capital with risk protection mechanisms and differentiated returns through a blended finance model. Meanwhile, the H2R Catalyse component, dedicated to investing in early-stage companies, has raised 3.6 billion meticais (57 million dollars) since 2023.
For the UK government’s special representative for climate, Rachel Kyte, “access to reliable and affordable electricity transforms lives,” emphasizing that the UK’s support for Acumen aims to contribute to achieving universal energy access by 2030.
Chris Chijiutomi, BII’s Director for Africa, stated that the investment reflects the institution’s commitment to supporting the most fragile and challenging markets, where private capital rarely reaches. He also highlighted that the initiative seeks to create economic opportunities for women, who remain disproportionately affected by energy poverty.
For Mozambique, this support represents a strategic opportunity to accelerate rural electrification and promote the energy transition, in a context where limited energy access continues to constrain socioeconomic development.
About Hardest-to-Reach (H2R)
The Hardest-to-Reach (H2R) initiative is designed to operate specifically in highly fragile contexts where conventional investments rarely reach, offering innovative financing solutions to enable off-grid energy companies to grow and operate in high-risk markets.
In addition to promoting rural electrification, the program also aims to boost local economic opportunities, with a special focus on including women, who are disproportionately affected by energy poverty.
Source: Diário Económico
