World Bank Funds Mozambique $5B Hydropower, Southern Africa's Largest in 50 Years

Mozambique has secured substantial backing from the World Bank for its ambitious $5 billion Mphanda Nkuwa Hydropower Project, Southern Africa’s largest in half a century, expected to generate 1,500 megawatts by 2031. The World Bank will provide debt and equity funding, risk guarantees, and insurance for this project on the Zambezi River, alongside a related $1.4 billion power transmission line connecting the central province of Tete to the capital Maputo. This initiative is part of the World Bank’s Mission 300, aiming to expand electricity access to 300 million people across sub-Saharan Africa by 2030, and it is expected to spur local mineral processing, reducing Mozambique’s reliance on exporting raw commodities. World Bank President Ajay Banga and Mozambique’s President Daniel Chapo envision turning the country into a regional energy hub, with additional plans for solar capacity and modernizing existing power plants. The project consortium includes Electricité de France, TotalEnergies, and Sumitomo Corp, and the dam will also enable power exports to neighboring countries like Zambia, Malawi, and Zimbabwe. Despite challenges such as post-election violence and security concerns, the project is seen as a key driver to boost economic recovery and growth in Mozambique and the Southern African region.