Mozambique seals US$250m loan from India’s Exim Bank for electricity infrastructure

MOZAMBIQUE – The Mozambican government has approved a financing agreement with India’s Exim Bank covering a US$213 million loan for the improvement of the electricity grid in the country.

The financing, the subject of a memorandum signed on August 3, 2020 will be applied to improving the quality of electricity in the cities of Maputo and Matola, Council of Ministers spokesperson Filimão Swazi said after a cabinet meeting in Maputo.

The project foresees 400,000 families being connected to the public electricity grid each year, on the way to achieving the goal of universal access to electricity by 2030.

Official figures reveal that the Mozambican government needs US$167 million to electrify all administrative post headquarter villages in rural areas.

Of the 135 administrative headquarters that still do not have an electricity connection, 94 will be connected to the national electricity grid and another 41 located too far from the national grid will be electrified using solar power.

Mozambique government has embarked on a massive energy infrastructure improvement and expansion for industrial and domestic consumption with support from its development partners.

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