In Mozambique, the rural electrification rate reached only 27% as the extension of electricity grids has proven to be technically difficult, very costly and sometimes an inefficient solution due to the remoteness and sparse population density.
The agricultural sector - one of the most important sectors of the economy- faces serious challenges in accessing electricity and other forms of modern energy forcing it to rely on expensive diesel, firewood and/or charcoal for its operations. Even though it has been estimated that Mozambique has a potential of 7 GW on renewable projects, the use of modern energy for productive uses is still very limited.
In general, apart from the agricultural sector, small and medium industris still consumes large quantities of wood fuels to manufacture ceramics, bricks, in bakeries, producers of oil, tea, tobacco and soap.
The main motivation for this preference is the belief that diesel and wood fuels are the most affordable energy source combined with a lack of knowledge about alternative energy sources. There are also beliefs (in some industries) that the use of wood fuel has a positive influence on the quality of the final product. In addition, the transition from the use of firewood to renewable energy sources requires the acquisition of new equipment for producers who generally do not have the financial capacity to make investments.