The World Bank (WB) has approved a 300 million dollar grant made available by the International Development Association (IDA) to enable greater access to energy and broadband services in rural Mozambique, according to a statement from the institution.

The document issued on December 14, 2021 emphasizes that the amount is also intended to strengthen the activities of Electricidade de Moçambique (EDM).

The plan foresees the expansion of the electricity grid to rural and peri-urban areas, benefiting more than 1.1 million people, and extending internet access to at least 580,000 people to "bridge the digital divide."

"Mozambique's economy can benefit from systematically harnessing the synergies of energy and digital connectivity in rural and fragile areas," said WB Director for Mozambique, Madagascar, Comoros, Mauritius and Seychelles, Idah Z. Pswarayi-Riddihough.

With the investment, she foresees an increase in economic productivity, promotion of inclusive development, and creation of resilience in a sustainable way.

That document also notes poor equity in energy access and distribution in the country, which remains at very low levels.

"The rural electricity access rate is estimated at about 8%, compared to 72% in urban areas. Only 4% of Mozambique's population has access to clean energy solutions for cooking. Similarly, access to telecommunications services is also limited, with only 30% of the population using the Internet," it reads.

Senior Energy Specialist and Project Task Team Co-Leader Samuel Oguah assured that with the $300 million, all work will be focused on providing energy to the neediest populations, those displaced by conflict, and critical social services (schools and hospitals) where private sector participation is limited.

The investment also provides for support to agriculture through the productive use of the electricity to be allocated.

This project is co-financed by Sweden and Norway through the Multi-Donor Energy for All Trust Fund with an additional amount equivalent to $38 million and the ESMAP Clean Energy for Cooking Fund in the amount of $5 million. The project will also contribute to the achievement of the National Electrification Strategy, which aims to provide electricity to the entire population of Mozambique by 2030.