FCUL article: “Analysis of the Economic Impact of Electricity Access in Mozambique”

One of southern Africa's largest energy producers, Mozambique, is facing an energy crisis. Despite efforts to expand access to electricity, which is in line with the United Nations Sustainable Development Goals, almost 70% of Mozambicans still live without access to modern energy services.

Mendita Ugembe's PhD thesis at the Faculty of Sciences of the University of Lisbon (ALER Member) explores this subject, investigating how access to electricity can play a crucial role in poverty reduction and human development. The study showed that energy poverty in Mozambique affects both urban and rural areas, and that the problem is not just about access - many people simply cannot afford the electricity needed to meet their basic needs.

The study also highlights the economic potential of electricity. For small and medium-sized businesses in Mozambique, electricity has been a valuable tool for increasing revenues and creating sustainable livelihoods. However, the high costs of electricity and the unreliable service often hinder the growth of these companies.

Surprisingly, the results showed that although electricity consumption is linked to economic growth, its impact remains limited. Mozambique's economy is not yet fully dependent on electricity to boost productivity, which means that although the energy sector is crucial, it has not yet revealed its full potential.

This thesis concludes that Mozambique can successfully use its energy resources to boost economic growth and sustainable development. However, this will require policies that promote the productive use of electricity and encourage industrial transformation at the local level. To sum up, Mozambique's energy future is promising - but only if the right steps are taken to maximize the benefits of electricity access for poverty reduction and sustainable development.

Read the full PhD thesis here.