Keypoints:
- $6bn Mphanda Nkuwa hydro dam backed by World Bank
- Mozambique targets nationwide electrification by 2030
- Project to power homes and regional exports
ELECTRIFICATION is transforming daily life in Mozambique, from powering hair salons and pharmacies to driving new jobs in trade and transport. In a village outside Maputo, electricity has enabled barbers to use modern equipment and allowed pharmacies to stock refrigerated medicines, illustrating the wider impact of access to power.
‘These are the kinds of businesses that drive economies,’ World Bank President Ajay Banga told the Associated Press (AP) during a July tour of electrification projects, where he met entrepreneurs benefiting from new connections. ‘Electricity isn’t just light, it’s a chance.’
World Bank backs mega hydro project
Banga’s visit coincided with World Bank support for the $6bn Mphanda Nkuwa hydroelectric project, the largest of its kind in southern Africa for half a century. The plant, located 60 kilometres downstream of the Cahora Bassa dam on the Zambezi river, is expected to generate 1,500 megawatts when it begins operations in 2031.
Mozambique, one of the world’s poorest nations by per capita income, aims to connect all 33 million of its mostly rural citizens to power by 2030. Hydroelectric, solar and other renewables form the backbone of this push.
Growing access but tough challenges
Access to electricity in Mozambique has nearly doubled, climbing from 31 percent in 2018 to 60 percent in 2024, according to state utility Electricidade de Moçambique (EDM). The company connected 563,000 homes in 2024 and plans to reach 600,000 this year.
‘Mozambique has the resources – gas, hydro, solar – and it’s already the biggest supplier of excess power to southern Africa,’ Banga said.
Still, the challenge remains daunting across the region. Sub-Saharan Africa is home to 85 percent of the world’s population living without electricity, the World Bank notes.
Private capital and shifting aid
The Mphanda Nkuwa project is not being financed outright by the World Bank. Instead, it is led by a consortium of TotalEnergies, Électricité de France and Mozambique’s Hidroeléctrica de Cahora Bassa. The World Bank will contribute through concessional funding for legal and environmental oversight, as well as guarantees and insurance.
Banga said this model reflects a shift in global development finance, as many governments reduce overseas aid budgets in favour of defence and domestic priorities. ‘This is the way it is,’ he remarked.
Powering exports and rural areas
Mozambique hopes the project will boost foreign earnings by exporting electricity to South Africa and Zimbabwe. Across Africa, major hydro projects are reshaping the energy landscape, including Ethiopia’s $4bn Grand Renaissance Dam and Congo’s Inga 3 scheme.
Yet hydropower potential remains largely untapped, with about 90 percent of Africa’s capacity unused, according to the World Bank and International Hydropower Association.
EDM chairman Joaquim Ou-Chim said mega-dams alone cannot solve the access problem: ‘Our country is quite big, and it’s not so easy to go everywhere with the national grid. So it’s off-grid solutions, mainly driven by solar.’
Debt concerns weigh heavy
Some experts warn of financial risks. Public debt stood at $17bn in early 2025, with a record $2.1bn spent on debt service in 2023, the Finance Ministry reported.
‘The World Bank is not a godfather, it is not god. The guy is here on business. These are not donations,’ said Maputo-based consultant Evaristo Cumbane. He argued smaller, local projects tapping Mozambique’s rivers, sunshine and wind are essential.
Waiting for the switch
For some Mozambicans, the benefits are already visible. For others, the wait continues. In one impoverished neighbourhood, 38-year-old Aurélio Arlindo pointed to new power poles outside his home.
‘It’s really coming. I am just waiting,’ he said, hopeful he will soon be able to open a cold drinks stall.
