Clean energy in Mozambique receives $200 million in European support - Energy

The European Union announced its support for clean energy projects in Mozambique, with the aim of supporting the African country in achieving the growth of the two economies; Green and digital.

The EU recognizes that clean energy and vital raw materials – such as graphite – are pathways for the development of Mozambique’s economy.

The EU-Mozambique Cooperation Program plans, in the first 4 years of its implementation (2021-2024), to finance projects worth €200 million ($208.21 million) in the field of clean energy in Mozambique and digital transformation, specifically in the protection of nature and ecosystems, and environmental transformation in agriculture. forests, and fisheries.

In addition to building a resilient infrastructure in the areas of renewable energy, transportation, water and wastewater, and digital transformation to achieve inclusive growth.

Cooperation between Europe and Mozambique

During the 4th edition of the EU-Mozambique Economic Roundtable, which discussed “the opportunities of the private sector in the face of environmental and social transformation”, the Ambassador of the European Union in Maputo, Antonio Gaspar, said that Mozambique must be able to exploit its gas reserves during its journey of environmental transformation. .

In 2011, an offshore natural gas field was discovered in the Rovuma Basin, north of Mozambique, and the field’s reserves are estimated at 100 trillion cubic feet.

The success of the Mozambique-EU Environmental Agreement hinges on access to basic raw materials needed for clean energy projects in Mozambique.

Clean energy in Mozambique
Round table with the European Union on clean energy projects in Mozambique

The consumption of this material is expected to increase fourfold in the case of graphite, which is one of the most abundant minerals in northern Mozambique.

Miners in Mozambique export graphite to the United States for processing and production of natural graphite-based active anode material (AAM), which is essential for lithium-ion batteries.

Lithium is used in the manufacture of batteries for smartphones, laptops, and batteries for electric cars.

Investment challenges

“The growing demand for basic raw materials presents an opportunity for clean energy projects in Mozambique, despite the risks of accelerating environmental destruction and exacerbating climate change,” said the EU ambassador in Maputo.

“Therefore, we must establish a partnership based on the sustainable use of natural resources,” he added.

In pursuit of ecological balance, the European Union intends to support Mozambique’s agriculture sector to comply with global standards for sustainability, and to meet standards that are a condition of access to the European market.

Antonio Gaspar stressed that the EU has other mechanisms to support investment reform, but that Mozambique must create a “favorable trading and investment environment”, according to the Club of Mozambique website.

Challenges facing clean energy in Mozambique

The president of the Association of European Businessmen in Mozambique, Simon Santi, pointed to a range of obstacles facing business in the country, including bureaucracy.

Santi asked Industry and Trade Minister Silvino Moreno that airport staff in Mozambique welcome foreign businessmen with a smile rather than complicate arrival, jeopardizing the success of investments.

The Minister of Industry and Trade emphasized that the EU could help Mozambique to develop “sectors with export potential” in the new context of the green economy.

“Strengthening trade relations between Mozambique and the European Union is among the priorities of his ministry,” Moreno added.

The director of the Center for Democracy and Development – a non-governmental organization – Adriano Nofunga, warned of internal political contradictions and the suffering of most Mozambicans from poverty.

“With the population going hungry, the debate about the green economy is only for the elite, and it will not be sustainable,” said Novonga.

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