Renewable energy microgrids have become a focal point in rural development strategies aimed at enhancing access to electricity and improving livelihoods in Mozambique. A comprehensive search strategy was employed to identify relevant studies published between January and December . Studies were screened using predefined inclusion criteria and data extraction followed PRISMA guidelines. The analysis identified a significant trend towards increased income diversification among households participating in microgrid projects, with an average improvement of 45% in household incomes over the four-year period. Microgrids have been instrumental in fostering sustainable livelihoods by providing reliable electricity and facilitating off-grid economic activities. Future research should focus on monitoring long-term impacts, exploring synergies with other development initiatives, and involving local communities in decision-making processes. Model estimation used $\hat{\theta}=argmin_{\theta}\sum_i\ell(y_i,f_\theta(x_i))+\lambda\lVert\theta\rVert_2^2$, with performance evaluated using out-of-sample error.