Participation by Mozambicans in Energy Projects

Mozambique locator map courtesy of Creative Commons By TUBS/Wikimedia.

Former Mozambique Minister of Mineral Resources and Energy Castigo Langa is chairman of the board of directors of Gigawatt Moçambique. In this article, part of a series of discussions about the big energy questions facing Sub-Saharan Africa, Minister Langa discusses the challenges and opportunities from the perspective of his southeastern African nation.

I don’t bring any recipe to respond to the challenge posed to us. I am simply proposing to invite those present to accompany me in a brief reflection on the theme “Participation by Mozambicans in Energy Projects”. It is a very wide-ranging theme, both in terms of the nature of the projects, and the type of participation, which can range from the supply of goods and services during the various phases of the projects to the position of shareholder, a matter on which I shall focus my presentation. Perhaps I am taking too long, because, instead of describing the knife with which a cake can be divided, it seemed more intelligent to me to give my opinion about how to make a cake with the ingredients we have available.

Taking the market as the backdrop, perhaps we can begin with the very definition of energy. To avoid a complex scientific definition, we can resort to what is taught in secondary school, according to which, “energy is the capacity to do work”. This definition raises the question of knowing what work is done with energy in Mozambique?

The Profile of the Market

In the case of electrical energy, statistical data from Electricidade de Moçambique (EDM)[i] from 2013 indicate that of its about 1.3 million clients, only 142, I repeat 142, were agricultural (although agriculture is the sector in which the greater part of the Mozambican population works), consuming a derisory 0.82% of the energy distributed. This is even lower than —> Read More