Mozambique Launches $6 Billion Mphanda Nkuwa Hydropower Project – A Game-Changer in Southern Africa’s Energy Landscape
Maputo, Mozambique – The government of Mozambique has officially launched the ambitious Mphanda Nkuwa hydropower project, backed by the World Bank with a financing package of approximately $6 billion. Set to be the largest energy infrastructure initiative in Southern Africa in the past five decades, this project is expected to transform the region's energy outlook.
Key Details at a Glance:
- Location: Downstream from the existing Cahora Bassa dam on the Zambezi River in Tete Province.
- Capacity: The dam will generate 1,500 MW of clean, renewable electricity, enough to power millions of homes.
- Timeline: Construction is underway, with operations expected to commence by 2031.
- Consortium-led Development: The project involves Électricité de France (EDF), TotalEnergies, and Sumitomo Corporation, along with Mozambique’s utilities EDM and HCB holding a 30% stake.
- World Bank Support: The World Bank is providing concessional financing, risk guarantees, and environmental advisory support.
Why This Matters:
- Transforming Energy Access: Mozambique has doubled electricity access from 31% in 2018 to 60% in 2024, and this project will boost it further.
- Regional Impact: The electricity generated will also benefit neighboring countries, positioning Mozambique as a clean energy exporter.
- Economic Uplift: The dam will create thousands of jobs, lower industrial energy costs, and attract foreign investment.
Environmental & Social Considerations:
- Displacement: Around 1,400 families may be relocated, with downstream livelihoods for nearly 200,000 people affected.
- Ecological Concerns: Critics argue the dam may disrupt ecosystems and agriculture downstream.
- Smaller Footprint: Supporters highlight that the reservoir’s footprint is smaller than Cahora Bassa, making it relatively less damaging.
Conclusion:
The Mphanda Nkuwa hydropower project is not just about electricity. It represents a transformative opportunity for Mozambique’s economic future, the region’s clean energy supply, and Southern Africa’s industrial development. While concerns remain about environmental and social impacts, the project is widely seen as a cornerstone of Mozambique’s long-term development strategy.