Evaluation of the REACT Mozambique Window

The REACT Mozambique intervention was implemented during the period 1st June 2012 to 31 December 2018 with funding from the Netherlands Ministry of Foreign Affairs (NMFA). The intervention sought to provide catalytic financing to renewable energy businesses and climate technologies, which had the potential to create transformative impact on communities in Mozambique. AECF provided 55% of the total funding as interest-free loans and 45% of the disbursements as non-repayable grants to early-stage enterprises and start-up businesses in Mozambique. The intervention was designed to deliver the following:

• Reach 25000 people with products and services that help them adapt to climate change
• Create 750 private-sector jobs in the REACT companies
• Serve 9380 rural people in Mozambique by low-cost clean energy products and services
• Mechanisms in place to select and manage investees with the highest potential for transformational impact,
• Renewable energy businesses and climate technologies established and commercially viable

A total of 12 companies were selected; two companies withdrew hence a total of 10 companies received funding. Eighty percent of the portfolios are start-up companies, reflecting the nascent sector of business models addressing climate change. The 10 businesses focused on biofuels – biodiesel production, off-grid solar PV and solar-powered charge stations, livestock management and recycling and waste management.