Due to poor planning, decades of under-investment and deteriorating
infrastructure, the provision of electricity in Mozambique has been
deficient. However, outstanding economic growth and the government rural
electrification programme are galvanising the electricity industry in the
country.



    (Logo: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)



    New analysis from Frost & Sullivan (http://www.energy.frost.com),
Strategic Analysis of the Mozambican Electricity Industry, finds that the
industry earned revenues of US$202.0 million in 2008 and is estimated to
reach US$455.50 million in 2015.



    If you are interested in a virtual brochure, which provides a brief
synopsis of the research and a table of contents, then send an e-mail to
Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com, with 
your full name, company name, title, telephone number, company e-mail 
address, company website, city, state and country. Upon receipt of the above 
information, a brief brochure will be sent to you by e-mail.



    "Major investments in electricity projects in Mozambique have the
potential to add 9,000 MW of electricity to the Southern African power pool,"
notes Frost & Sullivan Industry Analyst Jeannot Boussougouth. "Despite the
global financial crisis, the demand for electricity is forecast to grow by
11.0 per cent until 2015 as a result of a boom in the agriculture and
manufacturing sectors, as well as a strong rural electrification programme."



    Mozambique is rich in energy resources, but has lacked the financial and
human resources to develop its electricity industry. It is, however, now
government policy to develop the potential of the electricity industry in
order to increase the access to electricity, while enhancing the
environmental sustainability of electricity generation.



    "Accordingly, the Mozambican electricity industry is expected to grow by
15.0 per cent by 2015," says Boussougouth. "The country's outstanding
economic growth has provided it with credibility, attracting more foreign
direct investment."



    However, theft and vandalism of electrical equipment pose a major threat
to industry prospects. In addition, the high level of capital required to
build a power plant is a significant hurdle to industry growth.



    "The poor state of infrastructure and low tariffs are the main factors
hampering the growth of the Mozambican electricity industry," remarks Assis.
"Moreover, the country has an acute shortage of skilled labour, forcing the
Mozambican government to import part of its manpower from Portugal, Brazil,
Switzerland and South Africa."



    There are other key challenges, such as sub-economic tariffs that are
likely to retard the growth of the electricity industry over the next two to
five years.



    "Promisingly, the Mozambican government is anticipated to invest about
US$700 million in an effort to expand its grid to the entire country by
2020," says Boussougouth. "Such trends will positively impact market
expansion."



    Strategic Analysis of the Mozambican Electricity Industry is part of the
Energy & Power Growth Partnership Service programme, which also includes
research in the following markets: Mozambican Power Generator & Equipment
Suppliers, Mozambican Power Suppliers and Mozambican Power Distributors. All
research included in subscriptions provide detailed market opportunities and
industry trends that have been evaluated following extensive interviews with
market participants.



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            Strategic Analysis of the Mozambican Electricity Industry
                                      M40A


    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-468-2315
    E: patrick.cairns@frost.com


    http://www.frost.com




Source: Frost & Sullivan

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-468-2315, patrick.cairns@frost.com.  Logo: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO