Market Entry Strategies and Potential Projects of Electric Power Sector in Mozambique

In this study, we examined the current status and the specific promising projects in the power sector of Mozambique, and explored the strategy to enter the Mozambican power market. As Mozambique stretches from north to south, she holds power transmission capacity constraints. To solve this problem, the construction of north-to-south transmission line is being pushed forward as the most crucial task in power sector. EDM tries to attract foreign investment by proposing various power projects, but the decision of investment in the Mozambican power sector needs to consider power supply conditions of the southern African nations, particularly of South Africa. Since transportation infrastructure to the coast line is not built properly, the feasibility of package deal approach should be reviewed comprehensively. In spite of various constraints, entering the power sector of Mozambique needs a more aggressive approach in terms that it will strengthen resources cooperation through pioneering new markets. In particular, considering the high country risk, a strategy would be necessary that the Korean government takes a portion of risk for private companies.