Mozambique has secured World Bank backing for the $6 billion Mphanda Nkuwa hydroelectric plant, the largest such project in southern Africa in 50 years. The plant, located 60 kilometers downstream from the Cahora Bassa dam on the Zambezi River, is expected to generate 1,500 megawatts when it begins operations in 2031.
World Bank President Ajay Banga visited Mozambique in July to tour electrification projects and meet local entrepreneurs. He highlighted the broader economic impact of electricity access, stating: 'These are the kinds of businesses that drive economies. Electricity isn’t just light, it’s a chance.'
Mozambique aims to connect all of its 33 million citizens to electricity by 2030, largely through renewable sources. Electricity access has nearly doubled from 31% in 2018 to 60% in 2024. The state-run energy supplier Electricidade de Moçambique connected 563,000 homes in 2024 and plans to reach 600,000 in 2025.
The project is being developed by TotalEnergies, Électricité de France, and Mozambique’s Hidroeléctrica de Cahora Bassa. The World Bank is providing concessional funding for legal and environmental issues, transmission lines, and risk guarantees. Banga noted that this approach aims to move away from reliance on donors, coinciding with a global shift in development funding.
However, challenges remain. EDM chairman Joaquim Ou-Chim noted that off-grid solar solutions are essential for reaching remote areas. Energy consultant Evaristo Cumbane stressed the need for smaller, local energy sources, saying: 'We are talking about plenty of rivers, plenty of sunshine, plenty of wind, plenty of coastlines.'
