New funding round opens in Mozambique to support solutions for productive use of energy

The Beyond the Grid Fund for Africa (BGFA) is launching a new funding round in Mozambique to support the scale-up of productive use of energy solutions. This is BGFA’s sixth Call for Proposals to incentivise clean off-grid energy solutions in sub-Saharan Africa.

The new funding round supports productive use of energy (PUE) providers across a range of fields, including agriculture, for example water pumping and irrigation, food processing and distribution, fishing and e-mobility. PUE solutions linked to mini-grids are also eligible.

Interested private sector companies with experience of scaling PUE solutions in Mozambique or elsewhere in sub-Saharan Africa are invited to apply for funding under this new Call for Proposals (BGFA6). The main goal of the funding round is to enable local energy service providers to accelerate their business growth in Mozambique and to encourage international energy service providers to utilise the expertise and capacities of local market actors.

“We are pleased to announce the launch of BGFA’s latest funding round in Mozambique. This round is designed to boost productive use of energy solutions, which play a crucial role in enhancing economic growth, generating income and creating jobs across various sectors, including agriculture, food processing and e-mobility”, says Merja Laakso, Director of Programmes, REEEP.

“At REEEP, we are proud to have supported the design of the call, ensuring it effectively aligns with the Mozambican government’s goal of attracting mini-grid deployment via certified, proven-quality appliances, striking a balance between encouraging applications from local companies and facilitating the entry of international players. Our commitment to developing clean energy markets is deeply-rooted, as we work to strengthen local actors, empower partnerships and drive lasting socio-economic benefits in Mozambique”, Merja continued.

The total funding available is EUR 3.4 million and the indicative individual contract size per energy service provider is expected to be between EUR 1.0 and EUR 2.0 million. The new funding round is aimed at boosting energy access in rural and peri-urban areas, and as a result the municipality of Maputo and the municipality of Matola are excluded from BGFA6 financing.

“AMER is honoured to partner with BGFA to launch its new call in Mozambique. This collaboration aims to strengthen the ecosystem of productive use of energy solutions in our country, promoting sustainable development and generate lasting benefits for local businesses and communities. We believe that this continued collaboration between BGFA and AMER is a true testament of AMER’s role in promoting the development of the renewable energy market and projects in Mozambique,” comments Ricardo Costa Pereira, President of AMER.

The new funding round is administered via a simplified, single-stage application process. The energy service providers that sign contracts will have access to limited, targeted technical assistance, as needed. Through the established Off-Grid Taskforce in Mozambique, involving both public and private stakeholders, the BGFA programme supports the development of local business environments that are conducive to the sale of off-grid energy services and that can provide sustainable development.

The application process

The funding round is open for applicants through an online application system. The application form will be available through the system latest at 15:00 Helsinki time (EEST) on 10 July 2024. The application system will close for submissions of applications on 13 September 2024 at 14:00 (EEST).

Applicants are requested to send any questions regarding the call and application process through the online application system by 2 August 2024 at the latest. Answers will be published in a generic form and made available to all registered applicants in the application system on 9 August 2024. Please only post questions related to the BGFA6 funding round via the online application system’s support section, as specified in the Application Guidelines.

The evaluation of the received applications is expected to take place in September to October 2024 and invitations to the highest scoring applicants to proceed will be sent in November 2024.

For further information about the Call for Proposals:

• Visit the funding round page and register for the online application system to apply for funding at beyondthegrid.africa/register.
• Download the Application Guidelines for more information on the application process and eligibility criteria.

About BGFA 

The Beyond the Grid Fund for Africa (BGFA) is a multi-donor facility established and managed by Nefco – the Nordic Green Bank. Nefco is an international financial institution based in Helsinki, Finland, focusing on environmental and climate investments and fund management. BGFA is implemented by Nefco, with the support of two project implementation partners. The Renewable Energy and Energy Efficiency Partnership (REEEP), an international multilateral partnership based in Vienna, Austria, works to accelerate market-based deployment of renewable energy and energy-efficiency solutions in developing countries. NIRAS is a development and engineering consultancy company headquartered in Denmark.

Photo: Farmer irrigating her tomato fields through a solar power-driven water pump – Jason Mulikita for Beyond the Grid Fund Africa