Electricity sector reform in Mozambique: a projection into the poverty and social impacts

The Government of Mozambique, in step with global trends, has embarked on a process of regulatory and structural reform of its electricity sector with support from the World Bank. The reform which is part of the Energy Reform and Access Programme (ERAP) aims to increase efficiency of the electricity distribution services, as well as expand access mainly in the urban and peri-urban areas. This paper takes a closer look at the basis for the reform, as well as a projection into the likely poverty and social impacts of this process on the poor. The paper draws mainly from secondary literature from Latin America, Africa and Asia to compare and contrast the presence of needed critical success factors from past experiences, if the reform is to deliver on its objectives. In conclusion, the paper makes recommendations on how the process could be adjusted to deliver on poverty and social objectives in line with the government framework, as set out in the Action Plan for the Reduction of Absolute Poverty (PARPA 2001–2005).