Mozambique advances Mphanda Nkuwa hydropower project with African Development Bank support

This followed a high-level technical workshop held at the African Development Bank’s Country Office in Maputo on 5 February 2026, which brought together representatives from the Ministry of Finance, the Ministry of Mineral Resources and Energy, Electricidade de Mozambique (EDM), the Mphanda Nkuwa Implementation Office (GMNK), and the African Development Bank.

The session focused on operationalising a Credit Enhancement facility designed to de-risk the project and attract private capital to reduce the cost of energy for Mozambique.

The Bank has acted as a strategic adviser to the government throughout the project’s development, supporting a transparent framework that led to the selection of a reputable strategic investor consortium. The project is now positioned to start discussions on its security structure, with a partial risk guarantee (PRG) seen as a key element for bankability.

The government has requested a PRG facility to backstop the liquidity obligations of Electricidade de Moçambique, mitigating off-taker risk for international lenders. In addition, AfDB plans to mobilise concessional and grant funding to support the Mozambique regional transmission line that will deliver power from the Mphanda Nkuwa hydropower project to industrial centres and enable exports to neighbouring countries.

“This workshop marks the shift from advisory to execution,” said Rômulo Corrêa, Country Manager, African Development Bank. “Having worked with the government to structure the transaction, we are now intending to de-risk Mphanda Nkuwa by utilising AfDB support. Under our ADF-17 mandate to ‘Unlock Capital at Scale’, we intend to secure the financing framework that will position Mozambique as the energy powerhouse of Southern Africa.”

Once operational, the 1500 MW run-of-river Mphanda Nkuwa hydropower project will provide universal energy access across Mozambique, supply competitive power to industries, and serve as a baseload exporter to the Southern African Power Pool (SAPP), generating hard currency revenues for the country.

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