Mozambique launches Africa’s biggest hydropower project in 50 years

Mozambique is advancing plans for the $6 billion Mphanda Nkuwa hydroelectric project on the Zambezi River, backed by the World Bank and private partners. The facility is expected to generate 1,500 megawatts when it becomes operational in 2031, making it southern Africa’s largest hydropower project in five decades.

World Bank President Ajay Banga highlighted the economic impact of electrification during a July visit to Mozambique, noting how access to power has enabled small businesses, health services, and local jobs. Mozambique aims to provide universal electricity access to its 33 million people by 2030, primarily through renewable energy.

The Mphanda Nkuwa plant will be developed by TotalEnergies, Électricité de France, and Mozambique’s Hidroeléctrica de Cahora Bassa. The World Bank will not directly finance construction but will provide concessional funding for transmission lines and environmental safeguards, as well as partial risk guarantees and political risk insurance.

Electricity access has risen sharply, from 31 per cent in 2018 to 60 per cent in 2024. State-owned Electricidade de Moçambique (EDM) connected 563,000 households last year and targets 600,000 more in 2025. About 10 per cent of access currently comes from off-grid solar and other decentralised solutions.

Mozambique is already a key exporter of electricity in southern Africa. The new project is expected to strengthen regional supply, with exports planned to South Africa and Zimbabwe. However, experts caution that local, smaller-scale renewable projects remain essential for rural areas that are difficult to reach with the national grid.

The country’s rising debt burden is also under scrutiny. Mozambique’s public debt reached about $17 billion in early 2025, with $2.1 billion spent on debt servicing in 2023. While the final financing structure for Mphanda Nkuwa has not been confirmed, costs are projected between $5 billion and $6 billion.