Enabel Mozambique recently convened a roundtable to explore the opportunities and challenges of scaling solar-powered irrigation schemes across the country. Over 200 participants including financiers, private sector actors, government representatives, and international cooperation partners attended the event, reflecting the growing interest in this innovative and climate-smart solution.

Through the Renewable Energy for Rural Development Project (RERD2+), Enabel has already stimulated demand for solar irrigation among farmers by co-financing up to 80% of initial investment costs. These systems offer a compelling alternative to traditional diesel-based irrigation: they drastically reduce operational expenses, minimize environmental impact, and enhance climate resilience in rural communities. “Solar-powered irrigation is not just a technology shift but it’s a pathway for farmers to grow commercial farming and capture agribusiness potential in a climate-resilient way,” said Jan Verlaak, Project Manager at Enabel Mozambique.

With more than 500 solar irrigation systems co-invested through RERD2+, demand has already begun to outpace the program’s financing capacity. To keep momentum, Enabel brought stakeholders together to identify strategic pathways for expanding this rapidly growing market. “No single actor can unlock the full potential of solar irrigation in Mozambique; it requires coordinated action between government, finance, and the private sector,” emphasized Eng. Delfim Vilissa, Director of INIR (National Irrigation Institute - implementation partner for the project). The consensus that no single institution can resolve all market constraints underscores the need for partnerships involving government authorities, financial institutions, and the private sector.  

Defining smart co-financing mechanisms and creating a level playing field for the private sector

Participants broadly agreed on the urgent need to facilitate investment for solar-powered irrigation systems. Although operational costs are relatively low, high upfront capital requirements remain a significant barrier for farmers—further compounded by a lack of effective agricultural financing mechanisms.

To unlock the technology’s full potential, developing smarter, more accessible co-financing models is critical. While many development partners already offer co-financing for solar irrigation equipment, approaches vary widely, from full subsidies to fixed percentages (e.g., 50% or 70%). Such inconsistencies can inadvertently create competition between donor-funded programs in the same regions. Enabel will therefore assess optimal co-financing thresholds based on farmer typologies to maximize development impact, preserve market integrity, and enable service providers to grow sustainably.

Service providers at the roundtable also pointed to burdensome and unclear taxation and import procedures for irrigation equipment. Although Mozambique offers favourable tax conditions for fully imported kits, many providers use a hybrid approach—importing pumps while sourcing other components locally. Resolving these regulatory and customs bottlenecks will be key to fostering a fair and competitive market. A follow-up strategy will outline reforms to ensure this level playing field.  

Strengthening the private sector for long-term success

Stakeholders agreed that the long-term sustainability of solar irrigation hinges on fortifying the private sector. Farmers must be familiarized with new technologies, while local service providers need support in accessing public tenders and offering solutions in remote areas. Adapting public procurement frameworks to include local solar-based innovations—and ensuring capacity-building for local businesses—can make it easier for domestic providers to participate effectively in tender processes.

However, sustainability challenges remain, especially regarding service provision in remote communities. High operational costs for providers often hinder outreach to isolated areas. Supporting locally adapted business models and strengthening supply-demand linkages will be essential for continuous, rural-based service provision. “Co-financing must be targeted not to disrupt, but to empower the private sector—ensuring local service providers can grow their businesses while expanding access to climate-smart solutions,” noted Sophie Teyssier, Rural Development Specialist at Enabel Mozambique.  

A roadmap for capturing the market potential of solar irrigation

The roundtable served as an important step in building a platform for inclusive, evidence-based policy dialogue. Enabel will continue the collaboration with INIR and work with partners to design a comprehensive roadmap for scaling solar-powered irrigation in Mozambique. This plan will clarify regulatory frameworks, align financing mechanisms, and embed private sector–driven solutions within broader development initiatives.

The commitment from all stakeholders to unlock solar irrigation’s potential reflects a shared vision: one in which Mozambique’s farmers can harness agribusiness opportunities through sustainable, affordable, and climate-resilient technologies.

• 
•