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Solar Home System Market Size in Mozambique
Introduction
This article provides a snapshot of the SHS market in Mozambique particularly the market size and is targeted at private sector, donor organisations, NGOs, Government bodies and other stakeholders who are interested in getting a deeper understanding of the SHS market.
In this article, the term SHS includes all Tier SHS, including picoPV products (below 10 W). Tier 1 is defined as basic SHS with lights and/or radio and/or USB port for mobile charging. Tier 2 includes lights, phone charger, radio and TV. Tier 3+ includes big productive use appliances such as solar pumps, refrigerators.
SHS Market Size
As of 2019, only 30.6% of Mozambicans had access to the national grid electricity. This number is even lower for the rural population where only 4.5% have access to grid electricity, although 63% of the total population are living in rural areas[1]. Thus, the Mozambican energy sector presents an enormous opportunity for off-grid electrification using SHS and mini-grids. Read more about the energy access situation in Mozambique here.
A study in 2018 calculated the potential for SHS market to be 4.4 million households and this mainly covers the market for SHS with single light and phone charger. A detailed breakdown is shown in the table below[2] :
| Systems | Potential market size (households) |
| SHS with single light and phone charger | 4.4 million |
| SHS with multiple lights, phone charger and radio | 3.5 million |
| SHS with multiple light, phone charger, radio and TV | 645,000 |
| SHS with multiple lights, phones charger, radio, TV and refrigerators | 276,000 |
A recent USAID study from 2020 estimates that 824,000 households (i.e. one in every five households) could afford a SHS without any additional subsidy. These households spend on average USD 7.5 per month on lighting, which is also the average monthly instalment for Tier 1 SHS[3]. The three largest potential markets are in Nampula, Cabo Delgado and Manica provinces. The wealthiest households are in Maputo and Manica. Zambezia province is the poorest where only 8 % can afford SHS[3].
The table below provides an overview of the demographics, electrification rate and social infrastructures in the 11 Mozambican provinces (based on 2017 census data)[4][5].
| Province | Population | Households | Area (SqKm) | Electrified population (%) | Monthly energy expenditure (USD) | Poverty rate (%) | Schools | Health centers | % of Mobile network coverage |
| Nampula | 5,758,902 | 1,151,800 | 77.953 | 23 | 4.1 | 64.8 | 244 | 200 | 75% |
| Cabo Delgado | 2,320,261 | 464,066 | 77,807 | 22 | 7.1 | 50 | 375 | 114 | 73% |
| Manica | 1,945,982 | 389,182 | 62.273 | 25 | 6.7 | 37.2 | 410 | 104 | 78% |
| Sofala | 2,259,248 | 451,842 | 67,664 | 34 | 5.4 | 49.6 | 75 | 232 | 58% |
| Zambezia | 5,164,726 | 1,032,961 | 102,884 | 10 | 4.1 | 61.8 | 1224 | 229 | 63% |
| Niassa | 1,810,803 | 362,161 | 122,342 | 19 | 5.8 | 66.7 | 110 | 160 | 68% |
| Tete | 2,648,949 | 529,790 | 99,299 | 14 | 7.1 | 41.9 | 71 | 129 | 73% |
| Gaza | 1,422,458 | 284,517 | 75,131 | 30 | 6.3 | 43.6 | 578 | 140 | 77% |
| Maputo | 1,968,889 | 393,774 | 22,981 | 78 | 15.9 | 11.8 | 357 | 111 | 46% |
| Inhambane | 1,488,685 | 297,745 | 68,351 | 15 | 6.6 | 34.5 | 2 | 129 | 69% |
| Maputo City | 1,120,869 | 224,175 | 331 | 100 | 15.9 | 11.8 | 0 | 39 | 100% |
The table below shows the distribution of potential SHS households across the different provinces; and challenges and opportunities for reaching these households (based on the 2019 SAEP consumer survey)*[3].
| Provinces | Potential SHS market (households) | Challenges | Opportunities | Recommendations |
| Nampula | 300,000 | Humanitarian crisis has spread from Cabo Delgado to some part of Nampula[6]. | Highest awareness for SHS products | Opportunity to expand SHS products in deeper areas of this province |
| Highest ownership of SHS | Private sector can collaborate with humanitarian agencies to meet the energy needs of the displaced population in temporary settlements. | |||
| Good perception of solar among households | ||||
| Cabo Delgado | 130,000 | Humanitarian crisis | Highest ownership of SHS | Stay updated on the humanitarian crisis and how it develops.
Explore safer districts in Cabo Delgado for SHS distribution |
| No service providers in the immediate vicinity of the households | Highest access to mobile money access | Increasing the number of sales agents in this province | ||
| Manica | 101,000 | No service providers in the immediate vicinity of the households | Wealthiest households are in this province | Increasing the number of sales agents in this province |
| Low ownerships of SHS | Willingness to pay for SHS is high | Awareness and marketing activities needed | ||
| Sofala | 80,000 | Low affordability of the households | Highest awareness of SHS products | Offer lower Tier SHS that match the household’s ability to pay |
| Subsidies from donor to target these regions are helpful | ||||
| Tete | 78,000 | High risk of default | Offer lower Tier SHS | |
| Low affordability of the households | Subsidies from donor to target these regions are helpful | |||
| Low access to mobile money | Explore other informal micro financing[2] | |||
| Zambezia | 76,000 | High risk of default | High income stability | Offer lower Tier SHS |
| Low ownership of SHS | Subsidies from donor to target these regions are helpful | |||
| Poorest households | ||||
| Gaza | 38,000 | Low affordability of households | Offer lower Tier SHS | |
| Subsidies from donor to target these regions are helpful | ||||
| Maputo | 17,000 | Perception of solar is least positive | Highest ownership | Awareness and marketing campaign needed |
| Highest access to mobile money | ||||
| Inhambane | 13,000 | High risk of default | ||
| Low affordability | Offer lower range of SHS and subsidies from donor programmes to target these regions are helpful | |||
| Low access to mobile money | Explore other informal micro financing options |
Further Information
- Energy Access in Mozambique
- Solar Home System Market Landscape in Mozambique
- Solar Home System Consumer Insights in Mozambique
- Solar Home System Challenges for the Private Sector in Mozambique
Reference
- ↑ World Bank, “Mozambique | Data.”https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=MZ.
- ↑ 2.0 2.1 Greenlight. “Mozambique – Off-Grid Energy Market Assessment.” 2019. https://beyondthegrid.africa/wp-content/uploads/MOZ-Greenlight-Off-Grid-Energy-Market-Analysis.pdf.
- ↑ 3.0 3.1 3.2 USAID. “Can Mozambican Household Afford SHS? Insights from a Local Survey,” 2020. https://pdf.usaid.gov/pdf_docs/PA00WJJH.pdf
- ↑ USAID. “Mozambique Route-to-Market Tool,” 2020. https://dec.usaid.gov/dec/GetDoc.axdctID=ODVhZjk4NWQtM2YyMi00YjRmLTkxNjktZTcxMjM2NDBmY2Uy&pID=NTYw&attchmnt=VHJ1ZQ==&rID=NTU5NDcy.
- ↑ USAID (2022). Mozambique route to market (RTM) tool. https://pdf.usaid.gov/pdf_docs/PA00XGZT.pdf
- ↑ UNPF. “Mozambique Fact Sheet for the Northern Province Humanitarian Crisis: Cabo Delgado - Nampula - Niass,” 2021. https://reliefweb.int/sites/reliefweb.int/files/resources/unfpa_mozambique_fact_sheet_-_nothern_province_humanitarian_crisis_jan2021_0.pdf
