Mozambique

Bordered by the Indian Ocean in southern Africa, Mozambique is a vast country which has enjoyed strong growth over the past two decades. Today, the challenge is to achieve a better distribution of wealth and to ensure the population has access to essential services. AFD is helping the country to modernize its infrastructures and protect biodiversity.

Limpopo national park, Mozambique © Éric Mounier

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AFD and Mozambique: reducing poverty and protecting the environment

Helping to ensure universal access to water
Improving the access to electricity
Protecting and promoting the natural environment

Helping to ensure universal access to water

Dam in Mozambique © Joca Faria

Helping to ensure universal access to water

Mozambique has experienced significant growth over the past 20 years. However, part of the population still does not have access to basic services. In particular, access to water and sanitation is inadequate and unequally distributed (there is great disparity between rural and urban areas).

In the capital city of Maputo, where access to water is a daily challenge for half of the inhabitants, AFD is supporting the MWSP project in conjunction with the European Investment Bank and the European Union. The objective is to improve and extend the drinking-water supply system.

In particular, AFD is financing water supply infrastructures in suburban areas by developing the networks managed by “small private operators”. Ultimately, some 400,000 people, including many poor families, will have access to clean water.

Improving the access to electricity

Songo, Mozambique © Bruno Leclerc / AFD

Improving the access to electricity

In Mozambique, the demand for energy is high. The government's electricity-grid development policy and the installation of huge mining projects have further increased demand. Mozambique has a wealth of natural resources (water, sun, gas, coal) and even has the potential to play an important regional role in terms of energy production.

However, access to electricity is still limited and only 1 in 5 people are connected to the grid. The country must therefore invest heavily in order to improve and secure access to energy.

AFD has been supporting the development of the electricity sector since 1985 and provides support to the national electricity company Electricidade de Moçambique (EDM). Our financing has made it possible to:

renovate the Mavuzi and Chicamba hydroelectric power plants;
build the Ressano Garcia thermal power plant;
secure the transport of electricity to southern Mozambique: Motraco high-voltage power line (Mozambican Transmission Company);
increase the rate of access to the electricity grid: the EDAP (Energy Development and Access Program) suburban electricity-grid development project.

Protecting and promoting the natural environment

Protecting and promoting the natural environment

By protecting more than 20% of its territory, Mozambique has clearly asserted its ambition to make conservation and the sustainable exploitation of its natural resources a priority for the country’s future development.

Indeed, Mozambique's rich natural heritage is attracting an increasing number of tourists. There are several nature and wildlife reserves which are home to many different animals, complementing the tourist offer of neighboring South Africa.

AFD is investing in this area with three goals in mind: protecting biodiversity, creating economic opportunities (tourism, sustainable agriculture) for the local population, and supporting sustainable development.

With this in mind, we are committed to:

developing the Limpopo National Park, a flagship project, and supporting the protected areas of Quirimbas and Gilé;
combating poaching.

billion euros invested since 1981

35,000

households have access to drinking water

26%

of the funding is devoted to energy

Bordered by the Indian Ocean in southern Africa, Mozambique is a vast country with over 28 million inhabitants. Since the end of the civil war in 1992, it has experienced one of the highest rates of economic growth on the continent.

The country has many assets, which are still under-exploited: hydro-electric power, off shore oil, mining, agriculture and tourism. Indeed, Mozambique has an exceptionally rich natural heritage and several protected nature reserves. Moreover, the recent discovery of significant coal and gas deposits could radically change Mozambique's economic position and structure by 2025.

However, the country’s economic growth - linked in part to support from the international community - has not led to a genuine reduction in poverty. Mozambique still faces significant challenges: improving the distribution of wealth, making basic services (water and electricity) accessible to the whole population and upgrading its infrastructures.

AFD has been present since 1981 and is supporting the country's sustainable development through loans to the public (State or public companies) and private sectors (banks, companies, micro-finance institutions), financial guarantees, subsidies (NGOs, studies, capacity building), technical support missions and training.

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Mozambique

05 June 2018

Mozambique Biodiversity and development, a natural alliance

To mark World Environment Day on June 5th, we take you to the Limpopo National Park in Mozambique. With 147 species of mammals and more than 500 bird species, this huge territory is the setting for an ambitious project linking economic development and biodiversity conservation.