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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.

Mozambique faces major challenges in achieving universal energy access. Only about 49% of the population is connected to electricity, with rural access below 10%. Most rural households still depend on firewood and charcoal, causing health problems, deforestation, and gender inequality as women and children are mainly responsible for collecting biomass. Grid expansion has been slow, making off-grid solutions such as solar home systems crucial for last-mile communities. Yet, small and medium-sized enterprises (SMEs) in this sector face difficulties scaling their businesses, hindered by limited planning, weak financial systems, and poor distribution networks.

To respond, the Government of Mozambique has launched an Energy Transition Strategy (ETS) to build a sustainable, inclusive, low-carbon future. It focuses on universal access, renewable deployment, energy efficiency, resilient infrastructure, and a just green economy. These priorities align with the BMZ-funded Programme Supporting Climate Policy and the Energy Transition in Mozambique (PCTE), which strengthens institutional capacity, supports the National Development Strategy 2015-2035, and contributes to Mozambique's updated 2025 Nationally Determined Contributions (NDCs).

The PCTE has four outputs: (1) and (2) focus on NDC and adaptation planning, (3) builds capacity of institutions to implement the ETS, and (4) addresses energy access. Output 4 combines results-based financing (RBF) with targeted Business Development Services (BDS). The RBF component is channeled through the Fund for Sustainable Access to Renewable Energy (FASER), created in 2019 and managed by the Foundation for Community Development (FDC).
To date, 17 solar PV, irrigation pump, and clean cooking companies have received support. Complementary BDS, delivered by GIZ, is intended to strengthen SME capacities, provide training and mentoring, and where relevant, support infrastructure upgrades for clean cooking companies. Through grants, GIZ will also support biofuel cookstove companies, and through Stichting Practica, the solar irrigation value chain. This builds on EnDev's 15 years of experience in Mozambique. EnDev, a multi-donor programme funded by BMZ, the Netherlands, NORAD, and SDC, and implemented by GIZ, promotes access to modern renewable energy for low-income households, SMEs, and social institutions. It combines financing, technical assistance, and market development, helping companies grow. However, despite these efforts, SMEs still struggle with financial management, digitization, customer systems, and last-mile distribution.

PCTE Output 4 therefore aims to help at least 12 companies prepare financing-ready proposals by September 2027, boosting investor and donor confidence. The objective is to strengthen SMEs' business models to become demand-driven, gender-sensitive, and climate-friendly. Beneficiaries include formal and informal SMEs, start-ups, cooperatives, and enterprises in Maputo and underserved provinces.

cf. Tender documents.

GIZ may optionally commission contract amendments and/or increases based on the criteria in the tender documents to the successful bidder of this tender. For details, please see the terms of reference.

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