From Business Day

Lending to off-grid power projects and companies helping to maintain the grid are probably the most attractive opportunities for financial institutions in Mozambique at present, Standard Bank’s head of power and infrastructure, Ntlai Mosiah, said.

He said this was not the same as project financing for transmission projects, which, in agreement with Old Mutual portfolio manager Sean Friend, he believed were not generally appropriate for private financiers because they had a 20- to 50-year horizon. This financing was for subcontractors to Mozambique’s energy utility, Electricidade de Moçambique (EDM).

Mr Mosiah was speaking during a panel discussion on funding options at the Powering Africa — Moçambique conference organised by Energy Net and Mozambique’s Ministry of Energy. The conference has attracted about 200 local and international delegates, reflecting interest in developing Mozambique’s substantial coal and gas resources and meeting it’s energy needs. The country’s demand for energy is growing at about 100MW a year.

SCP Africa LDA partner Colin Waugh said there was a huge need to provide temporary power solutions for both big and small companies affected by power outages.

Written by Charlotte Mathews/Read more at Business Day