Mozambique: Nyusi demands a profitable and operational EDM

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Mozambique: Nyusi demands a profitable and operational EDM

4:41 CAT | 31 Aug 2022

Photo: O País

Mozambican President Filipe Nyusi has challenged the leadership of the public-owned electricity company (EDM) to work in order to make the company profitable by reducing losses caused by clandestine connections.

The president gave this recommendation during a Gala dinner marking EDM’s 45th Anniversary, held on Tuesday in Maputo.

“We call for management of the company in a commercial way”, Nyusi said, explaining that one of the main objectives is to consolidate the confidence of financial institutions, including cooperation partners.

The president also urged the EDM management to follow best international business management practices, and to be guided by the principles of honesty in contracting goods and services. He wanted the company to distance itself from nepotism and other behaviour that damages the good name of EDM and its prosperity.

On balance, Nyusi was pleased with the way EDM works, “but we also know that there are those who tarnish EDM’s name, by making clandestine connections”.

EDM, according to Nyusi, should serve as an example in the fight against corruption, stressing that corporate governance will also be instrumental in consolidating its credibility and trust with investors, including international partners.

Nyusi also recommended that EDM collaborate with HCB, the company that operates the Cahora Bassa dam on the Zambezi, with the National Energy Fund (FUNAE) and with other independent producers of electricity.

This collaboration should help to guarantee availability of electricity to prevent the energy balance from being negatively affected by the significant growth in demand.

“Although electricity has arrived in some administrative posts, there are populations that have not been reached yet”, said Nyusi. “We therefore asked the EDM management to continue with the projects of expanding electrification and consolidation of Mozambique’s position as a regional electricity pole”.

“We are in an advantageous position. Every type of energy that is produced in the world, we can produce”, declared Nyusi. But there was one exception: “We do not produce from coal because we respect the conservation of the environment”, he said.

EDM was set up on 27 August 1977, two years after the independence of Mozambique, with the mission to establish and operate the public service of generation, transmission and distribution of electricity.

At the time, the country had only 15 districts connected to the electricity grid. Today, EDM has managed to connect all districts to the grid, adding up to more than 2.8 million connections. EDM is now working to ensure that all administrative posts (the level of government below the districts) are collected to the grid by 2024.

Over the course of four decades, said Nyusi, the percentage of Mozambicans with access to electricity in their homes had risen “from two per cent to 41 per cent, even under extremely difficult circumstances”. 41 per cent is about 12 million people – out of an estimated total population of 31.6 million.

That meant that, “despite the excellent work EDM has been doing”, there was still a long way to go before all Mozambicans have electricity in their homes.

Source: AIM