81320071-Provision of Business Development Services (BDS) to Clean Cooking and Solar PV Companies in Mozambique

Mozambique continues to face serious challenges in achieving universal energy access. National electrification stands at around 49%, with rural access below 10%. Most rural households rely on biomass such as firewood and charcoal for cooking, leading to environmental degradation, severe health risks, and gender inequality due to the burden placed on women and children collecting fuel. Expansion of the national grid has been slow, making off-grid solutions particularly solar home systems essential for reaching last-mile communities. Yet the market remains weak, with SMEs struggling to scale and build sustainable operations.

To address these gaps, the Government of Mozambique (GoM) launched the Energy Transition Strategy (ETS), aiming for inclusive, low-carbon development. It prioritises universal energy access, greater use of renewables, efficiency improvements, and a just green economy. These priorities align with the German BMZ-funded Programme Supporting Climate Policy and the Energy Transition in Mozambique (PCTE), which strengthens institutional capacities and contributes to the National Development Strategy 2015-2035. It also supports Mozambique's 2025 NDC update, promoting science-based climate targets, resilience, and a low-emissions growth path.

PCTE has four outputs: two focus on climate policy and NDC support, one on strengthening institutions to implement ETS, and Output 4 on energy access. The latter provides results-based financing (RBF) to solar PV and clean cooking firms via the Fund for Sustainable Access to Renewable Energy (FASER), created in 2019 with the Foundation for Community Development (FDC). Seventeen companies have already benefited, including solar home system, irrigation pump, and stove enterprises. To complement financing, GIZ will provide Business Development Services (BDS) packages, the focus of this assignment, aimed at strengthening SMEs' operational and institutional capacity.

This work builds on EnDev's 15+ years of experience in Mozambique, supporting solar and clean cooking through RBF, technical assistance, and market development. Despite support, SMEs still face constraints-weak financial management, poor planning, limited digital tools, underdeveloped distribution in rural areas. Tailored BDS is therefore needed to address capacity gaps and help at least 12 companies develop financing-ready proposals by 2027, boosting investor and donor confidence.

The assignment's objective is to build demand-driven, gender-sensitive, climate-friendly business models for off-grid solar and clean cooking companies. Target groups include SMEs, start-ups, cooperatives, and informal businesses, particularly outside Maputo. Contractors will provide training and mentoring in business model development, customer management, accounting, gender and climate mainstreaming, risk management, digitalisation, product enhancement, carbon market readiness, and sustainable exit strategies. Specific focus will be given to LNOB+ principles, last-mile distribution, e-waste management, women's inclusion, and carbon credit opportunities.

Ultimately, the programme seeks to ensure Mozambican SMEs are better equipped to scale clean energy access, reduce reliance on biomass, improve gender equality, and integrate climate resilience into their business models. By combining RBF, grants, and comprehensive BDS, PCTE Output 4 aims to strengthen private-sector capacity, build investor confidence, and expand sustainable energy access for rural and underserved populations, contributing directly to Mozambique's ETS and NDC commitments.