Mozambique: EDM has US$25 million in debts to collect

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Mozambique: EDM has US$25 million in debts to collect

4:10 CAT | 02 Aug 2021

File photo: DW

Public and private institutions are seeking to establish debt relief plans with the Mozambican state company. The size of the debt reduces the company’s investment capacity and its participation in electrification programmes.

Public institutions in the state business sector and private entities owe Electricity of Mozambique (EDM) US$25 million [€21 million], and plans are underway to settle the debts, the company’s president said today (02 August).

“We have already managed to establish debt payment agreements with some companies, and they have been complying,” Marcelino Gildo told journalists attending the launch of an electricity distribution system in Ngauma district, Niassa province.

Most of the debtors are from the state’s business sector, but private entities are also responsible for an important portion of the amount, Gildo added.

No money to invest

The EDM president said customers not paying for the electricity they consume deprived the company of resources necessary for investment and full participation in electrification programmes throughout the country.

EDM was focused on achieving the UN goal of universal access to energy by 2030, Gildo said. “Right now, we are focused on the Energy for All programme, which includes the electrification of all Mozambique by 2030,” he emphasized.

Currently, Gildo explained, 40% of the Mozambican population enjoys electricity supply, with 36% receiving it from the national grid and about 4% through alternative sources.

Source: Deutsche Welle