Mozambique prepares to join Africa50 financial group

Mozambique this week began the process of joining the group of more than 30 African states that are shareholders in Africa50, which provides infrastructure financing for the continent, the financial institution said on Tuesday.

“By joining Africa50, Mozambique will benefit from access to world-class development expertise and project finance, accelerating the implementation of its infrastructure program, catalyzing private sector participation, making a significant contribution to stimulating economic growth and development,” explained a source from the institution.

The Mozambican government, through Economy and Finance Minister Max Tonela, signed an Africa50 share subscription agreement in Maputo on Monday, “committing the country to take the necessary steps to become a shareholder,” the institution said in a statement.

“When the integration process is completed,” the source added, “the total number of Africa50 shareholders will increase to 35, including 32 African countries, the African Development Bank, the Bank of the Central African States (BCEAO) and Al-Africa. Maghreb Bank.

The share subscription agreement signed by Mozambique follows the recent signing of a memorandum of understanding with Africa50 during the Climate Summit held in December in Dubai to develop four projects in the country, including three 260 MW solar PV power plants, one of which will be the first floating solar power plant (100 MW) on the continent.

“As we accelerate the development of critical infrastructure to meet the needs of our citizens, it is critical to find the right partner to develop and drive financing for these projects, and Africa50 has proven itself to be that partner,” said Max Tonela after the agreement was signed. of this subscription agreement.

“We are delighted to join Africa50 as a shareholder and look forward to supporting the vision of bridging the continent’s infrastructure gap while delivering development for our people,” the minister added.

For Africa50 chief executive Alain Ebobisse, Mozambique represents an “important partner” towards “closing the continent’s infrastructure gap”.

“We are pleased to already be actively working with the government on transformative projects in clean energy and transport. We look forward to supporting the concept of developing the country’s infrastructure through private investment and public-private partnerships,” said Alain Ebobisse.

Africa50 was created by African governments and the African Development Bank to address the infrastructure financing gap in Africa by facilitating project development, mobilizing finance and infrastructure investment.

Eletricidade de Moçambique (EDM) announced on December 5 that it will build and operate new solar power plants in the provinces of Cabo Delgado and Nampula, as well as continue construction of a floating solar power plant at the Chicamba Dam in Manique.

In a statement, EDM said it had signed a memorandum of understanding with Africa50 to “develop renewable energy generation and transmission projects” as part of initiatives to “stimulate the energy transition in Mozambique.”

Africa50 “will collaborate with EDM in the development, financing, construction and operation” of ground-mounted solar power plants at Montepuez in Cabo Delgado and Angocha in Nampula with an installed capacity of 100 MegaWatts (MW) and 60 MW respectively. including an energy storage component.

“The agreements also include the development of the first 100 MW floating solar power plant on the Chicamba hydropower reservoir to utilize existing water surfaces for energy production, thereby preserving arable land for agricultural purposes,” he adds.