Energy for All: Accelerating Mozambique’s Pace Towards Universal Energy Access

Key Highlights

• Between 2020 and 2024, more than 514,000 households in Mozambique were connected to electricity under the Mozambique Energy for All project (ProEnergia), benefiting approximately 2.6 million people, or around 12.5 percent of those previously without access.
• 400 public facilities - including schools and health posts - and 10 resettlement areas were electrified, improving access to essential services.
• 1,860 commercial enterprises gained access to reliable and affordable grid electricity.
• More than 50,000 ready boards were provided to the most vulnerable families to facilitate electricity access.
• About 1,800 direct and indirect jobs were created, including through Electricity of Mozambique's (Electricidade de Moçambique, EDM) Young Professional Program.

Juvelino Alberto, a student at Muhalaze Secondary School in Matola, attends a night class. Photo: World Bank

Since being connected to electricity in September 2023, Muhalaze Secondary School in Matola, Maputo Province, has been able to keep the doors open at night. For many young people who have had to leave school to work and earn a living, night classes are their only way to pursue their education and seek a better job. This is the case of Juvelino Alberto, a 22-year-old construction worker. During the day, he works on building sites, and at night, he builds his knowledge and skills in the classroom. He aspires to enter university and become a civil engineer.

"We can use the school's computers and Wi-Fi to research our studies. This way, I am learning faster," says Alberto.

Connecting schools and health centers to energy is one of Mozambique's priorities to achieve universal energy in the country by 2030.

Nurse Izarda Vasco at Eduardo Mondlane Health Center in Marracuene District. Photo: World Bank

Health professionals in the Marracuene District of Maputo Province can now care for patients with more complex health issues at night.

"In the past, during emergencies such as eclampsia, we needed the entire service team present to ensure that the candle or lamp did not go out while we cared for a patient. We also had to transfer mothers and newborns to another health center when mothers needed suturing or if we needed to find a newborn's vein. Today, births are safer with electricity," says Maternal and Child Health Nurse Izarda Vasco, who works at Eduardo Mondlane Health Center.

Challenge

Mozambique's progress toward achieving affordable, reliable, sustainable, and modern energy access for all (Sustainable Development Goal #7) was slow and uneven until recent years. In 2018, approximately 20 million people, about two-thirds of the Mozambican population, lacked access to electricity, with significant disparities between rural and urban areas. Key barriers included financial fragility of public agencies managing electrification, which bore the cost of expansion; a weak and fragmented transmission system with limited coverage; and economic constraints that affected affordability.

Approach

Underpinned by the National Electrification Strategy (NES), the government of Mozambique launched the Energy for All Program in 2018 with the goal of providing electricity to all Mozambicans by 2030. The NES outlined clear institutional roles to optimize the implementation of an access program and specified that government agencies would be provided with financing for electrification to ensure long-term sustainability. To help support the Energy for All Program, the World Bank approved the ProEnergia project in 2019, co-financed by the governments of Norway, Sweden, and the European Union through a Multi-Donor Trust Fund (MDTF). The project aimed to accelerate electricity access by expanding grid networks, improving last-mile connections in peri-urban and rural areas, and providing technical assistance targeted at building capacity of the sector institutions.

A national policy of zero connection fees was introduced to make electricity access more affordable for residential customers. Additionally, ready boards (pre-wired, low-cost electrical distribution boxes to connect electricity to households or businesses that may not have full conventional wiring) were provided to the poorest households that could not afford internal wiring. Together, these measures greatly accelerated household electrification. The success of these interventions was also supported by a procurement strategy that involved separate processes for design, supply, and installation, which allowed for economies of scale and reduced connection costs. ProEnergia also contributed to the national campaign and community engagement activities for the Energy for All Program, spreading key messages, managing customer expectations, and providing essential education on energy use.

ProEnergia worker installing last-mile connection. Photo: World Bank

ProEnergia also supported the development of the Off-Grid Electrification Roadmap, which provides strategic guidance for investment planning and policy alignment to expand decentralized energy access. In parallel, the project supported the design of options for the first government-led Results-Based Financing Facility to incentivize private sector participation and scale up off-grid solutions in underserved areas. Together, these efforts laid a solid foundation for the launch and implementation of the now active +Energia Facility (under the Sustainable Energy and Broadband Access in Rural Mozambique project - ProEnergia Plus project) by the government through the Energy Fund (Fundo de Energia, FUNAE), with the goal of ensuring sustainable and results-oriented electrification.

Results

During implementation (December 2020 - April 2024), ProEnergia project significantly exceeded its original targets. Initially, the goal was to provide electricity to 1.25 million people through 250,000 new household connections. However, the project ultimately connected 514,862 households, benefiting approximately 2.57 million people.

In addition to household connections, 400 public facilities, such as schools and health posts, and 10 resettlement areas for internally displaced persons were provided with electricity, improving access to services in these communities. The expansion of electricity also boosted business opportunities. Approximately 1,860 commercial enterprises gained access to reliable and more affordable grid electricity. This success was made possible by EDM's capacity to increase the scope of distribution lines by 30 percent, expanding the grid from 3,800 km to 4,889 km, which allowed more households, businesses, and other users to be connected. More than 50,000 ready boards were provided to the most vulnerable families to help them access electricity more easily.

The project also contributed to workforce development through EDM's Young Professional Program. Eight young professionals (including three women) were hired after two years of training and hands-on experience. About 1,800 direct and indirect jobs were created during the implementation phase. These achievements have established a strong foundation and a scalable model for future rounds, paving the way for continued progress and expansion of energy access in Mozambique.

One World Bank in Action

ProEnergia was a key part of the World Bank's broader engagement in addressing energy sector challenges in Mozambique, through an integrated strategy that combines financing, technical assistance, and risk mitigation, illustrating a One World Bank Group (WBG) approach. It laid the foundation for the now-operational +Energia Facility (launched under the ProEnergia Plus project), which offers incentives to the private sector to expand electricity access through distributed renewable energy technologies to remote communities and vulnerable populations, while also promoting clean cooking solutions.

The International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) are also exploring complementary engagements in mini-grids and power generation. These efforts include market assessment for mini-grids, potential financing-through debt and/or equity-of private sector-led generation (including hydropower).

Outside of last-mile distribution, the WBG instruments are strategically aligned along the energy sector value chain in Mozambique, with a particular emphasis on power generation. A flagship example of this integrated approach is the Temane Regional Electricity project -a gas-to-power initiative that will significantly increase Mozambique's generation capacity while enabling electricity exports across the region. The project also includes the construction of a 540 km national transmission backbone, essential for the grid strengthening and expanding access to reliable electricity. The project brings together multiple World Bank Group instruments to mobilize private capital and mitigate risks. Supported by IFC loan, MIGA guarantees, IDA guarantees, and IDA grant (for the associated transmission investments), the project's blended financing structure played a critical role in de-risking and attracting significant private and commercial capital, along with contributions from development partners.

Bank Group Contribution

For on-grid electrification, $82 million from the International Development Association (IDA) and $66 million from the Mozambique Energy for All Multi-donor Trust Fund (MDTF) were used to cover electrification costs such as materials, installation works, and supervision activities.

IDA also provided $0.5 million to prepare the Off-Grid Electrification Roadmap and develop options for the first Results-based Financing Facility to be implemented by the government of Mozambique through The Energy Fund (FUNAE). Combined, these efforts established a strong basis for the government-via FUNAE-to implement sustainable, outcome-focused electrification programs.

The project supported the first phase of a Young Professional Program for $0.8 million and the development of a communication strategy for the Energy for All Program and its implementation for $3 million.

Partners

An important factor for the project's success was the establishment of the Mozambique Energy for All Multi-Donor Trust Fund (MDTF), managed by the World Bank, which aimed at harmonizing and simplifying the procedures for channeling funds raised from development partners towards electrification in Mozambique. ProEnergia secured $66 million from the governments of Sweden and Norway and the European Union for on-grid electrification. Combined with $82 million from IDA, these funds enabled large-scale implementation while efficiently streamlining co-financing contributions. The team capitalized on the key partnership with MDTF partners, while upholding transparency and accountability through reporting mechanisms that strengthened project implementation and coordination.

By exceeding expectations and demonstrating integrity in execution, ProEnergia laid the foundation for the MDTF to become an important model for subsequent access expansion projects in Mozambique. The MDTF was extended to co-finance the ProEnergia Plus project with $38 million, and the Accelerating Sustainable and Clean Energy Access Transformation in Mozambique project (ASCENT) with US$31 million reinforcing a trustworthy and sustainable approach of support for the National Energy for All Program.

Looking Ahead

The World Bank is continuing to support the energy sector in Mozambique through a second energy access project, the ProEnergia Plus, which was approved in 2021 with a total envelope of $343 million. This initiative aims to build on the progress the government of Mozambique has made in the electricity sector and strengthen efforts toward achieving long-term development goals. As of August 2025, ProEnergia Plus has supported over 340,000 new electricity connections toward a target of 500,000, with Sweden and Norway participating in the project through the MDTF.

To maintain Mozambique's momentum, a third World Bank-supported access project was approved in March 2025, with the continued support of Sweden and Norway. The Accelerating Sustainable and Clean Energy Access Transformation in Mozambique project (ASCENT) will support on-grid and off-grid electrification, with an allocation of $131 million for its first phase. These initiatives align with the World Bank Group's Mission 300, which seeks to accelerate electrification in Sub-Saharan Africa by connecting 300 million people to electricity by 2030.