Mozambique launches $6 billion hydroelectric project to transform energy access

Mozambique is taking a major step to expand electricity access with the $6 billion Mphanda Nkuwa hydroelectric plant, the largest such project in southern Africa in 50 years.

The plant, located 60 kilometres downstream from the Cahora Bassa dam along the Zambezi River, is expected to generate 1,500 megawatts when operations begin in 2031. The project aims to help address a regional electricity deficit of 10,000 megawatts, which leaves millions without power.

Mozambique, home to 33 million mostly rural residents, has seen electricity access rise from 31% in 2018 to 60% in 2024. The state energy provider, Electricidade de Moçambique (EDM), connected more than 563,000 homes in 2024 alone and plans to reach 600,000 this year.

The World Bank is supporting the project through concessional funding, risk guarantees, and political risk insurance rather than direct financing. Global energy firms TotalEnergies, Électricité de France, and Mozambique’s Hidroeléctrica de Cahora Bassa will manage construction and operation.

Africa’s hydropower potential remains largely untapped, with the World Bank estimating around 90% of capacity unused. Ethiopia’s Grand Renaissance Dam and the Inga 3 project in Congo are other examples of ambitious regional energy projects.

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