Mozambique, World Bank backs $6bn hydropower

Key Figures & Findings: Mozambique has secured World Bank backing for the $6 billion Mphanda Nkuwa hydroelectric plant, the largest such project in southern Africa in half a century. Located 60 kilometers downstream from the Cahora Bassa dam along the Zambezi River, the 1,500MW plant will be developed by TotalEnergies, Électricité de France, and Mozambique’s Hidroeléctrica de Cahora Bassa. While the World Bank is not funding the project outright, it is providing concessional financing, legal and environmental support, transmission funding, and risk guarantees to ensure progress.

Statistics & Insights: Mozambique’s electricity access has climbed from 31% in 2018 to 60% in 2024. The state utility EDM connected 563,000 homes last year and aims for 600,000 in 2025. The new plant, expected to start operations in 2031, will help ease a regional 10,000MW power deficit.

Future Implications: If completed on schedule, the Mphanda Nkuwa project could provide significant electricity to Mozambique’s 33 million citizens and enhance its role as a net power exporter in southern Africa by 2031. It may also serve as a model for private sector–led financing of large-scale infrastructure projects on the continent.

Source: ABC News

Quick Take: Backed by the World Bank, Mozambique’s $6 billion Mphanda Nkuwa dam could transform national electrification efforts while reinforcing its role as a regional power supplier.