Mozambique tackles high energy bill, rural darkness

Mozambique tackles high energy bill, rural darknessMaputo  - Mozambique's government announced a string of measures to improve access to energy for millions of Mozambicans and to reduce the burden of the sector on state finances, local media reported Wednesday.

The government of President Armando Guebuza announced plans to dismantle the monopoly on fuel imports, invest 8.5 billion dollars in the implementation of a four-year plan to expand electricity nationwide, and expand natural gas output for the domestic and export markets.

Imopetro, a private company owned by the oil industry, will no longer be the only company licensed to import fuel - a measure Mozambique expects to reduce its high fuel bill, local newspapers and television quoted government spokesperson, Luis Covane, as saying.

Mozambique is rich in gas but has no oil.

Its fuel bill came to 750 million dollars in 2008, up from 400 million dollars for the same amount in 2004, government spokesperson, Luis Covane, was quoted as saying.

"These figures show clearly the importance of adopting strong measures to counter oil price instability in the international market," Covane said.

The 2009-2013 Energy Sector Strategic Plan is aimed at expanding the number of people with access to electricity. Currently the coverage rate is 14 per cent, far below the coverage rate in neighbouring South Africa of around 80 per cent.

Mozambique aims to electrify the entire country by 2015.

The government has also decided to increase its output from two gas fields in southern Inhambane province from a current 120 million GigaJoules (GJ) to 183 GJ per annum and to expand the capacity of a natural gas pipeline to South Africa, where it supplies petrochemicals giant Sasol. (dpa)

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