The proposed fund was part of a package of recommendations made in the African Development Bank (AfDB) ‘Transition Towards Green Growth in Mozambique’ report, aimed at supporting sustainable development goals under the country’s ‘Green Economy Action Plan’ (GEAP).
Other recommendations included promoting “greener modes of transport, such as mass-transit systems, particularly in the capital city Maputo” and projects to overhaul the power generating sector
A new ‘green economy investment fund’, supported by levies on the extractive industries, could help Mozambique boost investment in vital infrastructure projects, according to a new policy review from the AfDB.
Energy policy in Mozambique’s evolving green economy “should mainly incentivise investments in renewable energy generation”, the report said. Policies should focus “in particular” on projects such as mini-grids, “with a view to increasing access to sustainable energy services to peri-urban and rural populations”. This could be supported by “harnessing the country’s vast potential in hydro, solar, wind and biomass”.