Mozambique’s $6 Billion Power Project to Electrify Southern Africa

Mozambique has launched the $6 billion Mphanda Nkuwa hydro project (Image Source)

MAPUTO — Mozambique has broken ground on the Mphanda Nkuwa hydroelectric project, a $6 billion mega-infrastructure initiative billed as the most ambitious electricity development in Southern Africa in half a century. Positioned 60 kilometres downstream from the iconic Cahora Bassa Dam, the project promises to generate 1,500 megawatts (MW) of clean power and transform energy access across the region by 2030.

“Electricity isn’t just light—it’s a chance,” said World Bank President Ajay Banga during a July visit to Maputo.

A Regional Energy Game-Changer

The Mphanda Nkuwa Dam is set to become a cornerstone of Mozambique’s energy ambitions, designed to position the country as a regional electricity hub. With capacity equal to powering millions of households, the project will help meet Mozambique’s own surging demand while exporting surplus power to South Africa, Zimbabwe, Zambia, and Malawi.

Currently, Mozambique exports much of its Cahora Bassa output to the Southern African Power Pool (SAPP). Analysts say Mphanda Nkuwa will double that contribution, strengthening regional energy security. The development consortium includes TotalEnergies, Électricité de France (EDF), and Hidroeléctrica de Cahora Bassa (HCB). The World Bank is providing risk guarantees and concessional loans, de-risking one of Africa’s most capital-intensive infrastructure projects.

“This is a project that can change the energy map of Southern Africa,” said Mozambique’s Minister of Mineral Resources and Energy, Carlos Zacarias.

Progress and Persistent Gaps

Mozambique has made notable progress in electrification: access surged from 31% in 2018 to 60% in 2024. Authorities plan to connect 600,000 additional households in 2025 through mega-projects like Mphanda Nkuwa alongside decentralised solar systems. Yet rural areas remain underserved. “The real Mozambique is in rural, remote areas,” said energy consultant Evaristo Cumbane. “We need both mega-projects and local solutions.” Experts argue that while Mphanda Nkuwa will be transformative, parallel investments in off-grid solar, mini-hydro, and wind are critical to inclusive growth.

Regional Timing and Challenges

The timing is crucial. Southern Africa faces chronic shortages, with South Africa’s Eskom plagued by rolling blackouts, Zimbabwe rationing industry, and Zambia hit by hydropower volatility due to droughts. By exporting surplus power, Mozambique could stabilise the grid and earn billions in revenue. But risks loom. Financing could be strained by rising global interest rates. Construction on the Zambezi is vulnerable to climate variability. Human displacement remains a sensitive issue, with thousands expected to be relocated. The World Bank says strong resettlement and environmental safeguards are in place, but watchdogs insist transparency will decide whether benefits are equitably shared.

A Vision Beyond Power

For Mozambique, Mphanda Nkuwa represents more than energy. It carries ambitions of economic sovereignty, industrialisation, and regional influence. The dam could power industries from mining to agriculture, while lighting homes and schools in some of the world’s poorest communities.

As President Filipe Nyusi put it:

“Mphanda Nkuwa is not just Mozambique’s project—it is Southern Africa’s future.”