View source for Solar Home System Consumer Insights in Mozambique

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=== Introduction ===
This article provides a snapshot of the SHS market in [[Mozambique- Country Information|Mozambique]] particularly the consumer insights i.e awareness level, willingness to pay and access to finance of the consumers. For information about [[Solar Home System Market Size in Mozambique|market size]], [[Solar Home System Market Landscape in Mozambique|actors active in the market]] and other market insights, click '''[[Mozambique Solar Hub|here]].''' 

In this article, the term SHS includes [[Global Tracking Framework for Measuring Energy Access#Access%20to%20Electricity|all Tier SHS]], including picoPV products (below 10 W). Tier 1 is defined as basic SHS with lights and/or radio and/or USB port for mobile charging. Tier 2 includes lights, phone charger, radio and TV. Tier 3+ includes big productive use appliances such as solar pumps, refrigerators.

=== Solar Home System - Consumer Insights ===
'''Consumer awareness for SHS:''' Although there is a high consumer awareness for SHS products (68%), only 30% prefer SHS over the national grid electricity. Nevertheless, there is a significant percentage that is looking to buy solar products for lighting in the near future (37%) <ref name=":0">USAID. “Can Mozambican Household Afford SHS? Insights from a Local Survey,” 2020. https://pdf.usaid.gov/pdf_docs/PA00WJJH.pdf</ref>.

'''Ability and willingness to pay''': On average, a rural Mozambican household spends USD 12 on energy expenses (lighting, phone charging and radio) per month. An urban household spends USD 13<ref>Economic Consulting Associates, and Greenlight. “Off-Grid Solar Market Assessment in Mozambique,” 2018. https://www.lightingafrica.org/wp-content/uploads/2019/07/Mozambique_off-grid-assessment.pdf</ref> (based on a 2018 survey) monthly on average. Thus, the current energy expenditure could also cover PAYGO SHS with monthly instalments as low as USD 6 for low Tier SHS<ref>Based on the average price for a SHS with lights, battery, charger and a radio.</ref>. Furthermore, 60% of the households stated their willingness to pay over USD 12.5 per month for SHS with radio. Willingness to pay is highest in Nampula, Inhambane and Sofala provinces<ref name=":0" />.

In general, 59% of the potential customers have unstable income due to high dependence on agriculture. This could impact their default rates especially for PAYGO. In terms of monthly expenditure, 55% stated that their expenditure is fixed<ref name=":0" />. 

'''Product profile:''' Most of the households own Tier 1 SHS (72%) and this could also be due to the affordability factor. The monthly instalment for Tier 1 also matches what the households pay in general for energy services. Only 20% of the households own Tier 2 SHS and 8% own Tier 3+. The common use of SHS is for lighting<ref name=":0" />. 

Most of the products (mostly low Tier) are bought using one-time cash payment (75%). As the consumers move to higher Tiers, there is a switch to PAYGO. The households that pay instalments also pay on average more than USD 7.5 every month<ref name=":0" />.

'''Access to finance''': Overall, access to financial services is increasing largely due to mobile money but still varies greatly from one province to another. As of 2019, 21% of Mozambicans had access to formal institutions such as banks; 22% had access to other non-bank institutes such as micro finance, saving and credit cooperatives, mobile money and pension funds; 11% to informal savings groups called Xitiques and 46% did not have access to any<ref name=":1">Finscope. “Mozambique: Finscope Consumer Survey Report 2019,” 2020. https://finmark.org.za/system/documents/files/000/000/155/original/Mozambique_Survey-2020-07-311.pdf?1597303567</ref>. For more information about access to consumer finance, please refer to this chapter<ref name=":1" />. 

The table below shows the breakdown of access to finance by province.<ref name=":1" />

{| class="wikitable"
|'''Provinces'''
|'''Formal banks (%)'''
|'''Other formal (%)'''
|'''Informal (%)'''
|'''Excluded (%)'''
|-
|'''Maputo'''
|37
|38
|3
|22
|-
|'''Inhambane'''
|23
|30
|16
|32
|-
|'''Gaza'''
|24
|30
|14
|32
|-
|'''Sofala'''
|20
|27
|7
|46
|-
|'''Cabo Delgado'''
|23
|17
|12
|48
|-
|'''Nampula'''
|20
|18
|12
|50
|-
|'''Tete'''
|16
|17
|15
|53
|-
|'''Manica'''
|20
|18
|8
|54
|-
|'''Zambezia'''
|12
|19
|13
|56
|-
|'''Niassa'''
|14
|12
|13
|62
|}
'''Usage of mobile money''': As mentioned above, PAYGO is key when a consumer wants to move to higher Tier SHS. Thus, it is important to understand the usage of and penetration of mobile phones as PAYGO can use a variety of payment systems including mobile money. 

In 2019, 29% of Mozambicans used mobile money for activities such as cash withdrawals (91%), cash transfer (18%), utility payments (27%) and payment for goods (9%). This is a huge jump considering the 3% in 2014. In terms of accessibility, 55% of Mozambicans have access to a mobile phone. As of 2018, there are 43,125 mobile money agents covering all 11 provinces.<ref name=":1" /> 

The most common use of mobile money is for cash withdrawals (most probably remittance money, 91%) and cash transfer (18%). Only 27% use it for utility payments and 9% for goods payment. 

Mobile payment is still costly in Mozambique and this directly impacts the cost of the solar home system for the end consumers<ref>Catruza, J. (2021). [[Webinar Series: Statuesque and Market Potential of Off-grid Renewables in Mozambique|Webinar on State of Play: Solar Home System Market in Mozambique.]] </ref>.  

'''Click [https://www.gsma.com/coverage/#3958 here] to see the network coverage maps in Mozambique.'''

=== Further Information ===
*'''[[Energy Access in Mozambique]]'''
*[[Solar Home System Market Landscape in Mozambique|'''Solar Home System Market Landscape in Mozambique''']]
*[[Solar Home System Market Size in Mozambique|'''Solar Home System Market Size in Mozambique''']]
*[[Solar Home System Challenges for the Private Sector in Mozambique|'''Solar Home System Challenges for the Private Sector in Mozambique''']]
=== References ===
<references />
[[Category:Mozambique]]
[[Category:Renewable Energy]]
[[Category:Solar Home Systems (SHS)]]