The European program GET.invest and the GIZ Cluster “Development of Financial Systems” have joined forces with financiers in Mozambique to increase investments in decentralized renewable energy projects. This collaboration is part of GET.invest’s objective to strengthen renewable energy markets, and is funded in Mozambique by the European Union and Germany. GET.invest is implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
Although investments in renewable energy in Mozambique have increased substantially in recent years, this has mainly been done with foreign capital and foreign currency, creating dependencies and exposing projects and businesses to currency risks. Consequently, local currency financing is one of the missing links to increasing renewable energy investment flows.
This collaboration aims to support financial institutions in Mozambique in developing and offering financial products to increase the share of renewable energy in their financing. In a first round, Banco Nacional de Investimento (BNI), Banco Internacional de Moçambique (BIM), Banco Comercial e de Investimentos (BCI) and Moza Banco will be provided with tailored training to expand their scope for action in this area. Further support may include consulting on due diligence processes and development of specific financial products for renewable energy projects and companies.
The project started in March 2021, with a round table organized in collaboration with the Mozambican Association of Banks (AMB), attended by eleven banking institutions. Representatives of the Delegation of the European Union and the German Embassy in Mozambique expressed their support for Mozambique’s National Electrification Strategy and the development of a sustainable market for renewable energy.
