Despite the vast potential especially in the solar energy sector, the usage of renewable energy sources and the implementation of energy efficiency measures is still very limited in Mozambique. So far only 14% of the Mozambican households are connected to the electricity grid and more than 80% of the households use charcoal as the main source of energy, thereby leading to deforestation and high greenhouse gas emissions.

In recent years KfW has been successfully promoting the development of micro and small enterprises in Mozambique via private financial institutions and the success of these programs sparked an interest by the banks to add renewable energy and energy efficiency loans for MSME, the tourist sector and retail clients to their product base.

MACS carried out a feasibility study to identify the potential demand for renewable energy and energy efficiency loans in Mozambique. On top of that the study analyzed the capacity of the local banking sector to extend such loans and the need for Technical Assistance.