Mozambique: EIB comes to rescue of EDM

The European Investment Bank (EIB) is appraising a €33m ($36m) loan for Electricidade de Moçambique (EDM), to support an €87m programme of short-term priority measures to improve supply. The project is co-financed by Germany’s KfW under the Mutual Reliance Initiative, a joint co-operation framework established by KfW, the EIB and Agence Française de Développement. According to an analysis of the electricity sector published in February by the US Agency for International Development, a government focus on expanding the grid has “left the country with a critically under-maintained legacy network with scant backup provisions and a high degree of reliance on a single energy source, namely hydro power.