Just a few months after Mozambique’s first ever large-scale PV project reached financial close and construction work began, the US Trade and Development Agency (USTDA) has awarded a grant to pay for a feasibility study for a new project of up to 100MW capacity.
Scatec Solar, KLP Norfund Investments and Electricidade de Mozambique (EDM) have closed debt financing and started construction on a 40MW PV project in Mozambique.
Whilst African solar is still firmly an emerging market, investors have confirmed that issues remain with development finance, insofar as it is holding back the market from truly taking off. Whilst development finance institutions (DFIs) are a crucial part of allowing the market to find its feet, the continent’s economic infrastructure needs to move beyond the realm of development finance for commercial financiers to be enticed.
The International Finance Corporation, a member of the World Bank Group, announced Wednesday that it will provide a financial package of US$55 million to build Mozambique’s first utility-scale PV project.
