$6 Billion Hydroelectric Project to Reshape Mozambique’s Energy Grid

Mozambique has secured World Bank support for the $6 billion Mphanda Nkuwa hydroelectric project, the largest of its kind in southern Africa in half a century. Located 60 km downstream from the Cahora Bassa Dam on the Zambezi River, the plant is expected to generate 1,500 megawatts when operational in 2031. This capacity will help address a regional power deficit of around 10,000 megawatts, strengthening supply in Mozambique and neighboring countries such as South Africa and Zimbabwe. The World Bank provides concessional support, partial risk guarantees, and financing for transmission.

In parallel, Mozambique is advancing the Accelerating Sustainable & Clean Energy Access Transformation (ASCENT) project. Backed by a $100 million grant from the International Development Association and $31 million from donor partners, ASCENT will expand both on-grid and off-grid electrification. The project aims to provide electricity to nearly one million people, connect 68 schools and health facilities, and offer clean cooking solutions to 90,000 individuals. The initiative is part of Mission 300, a joint World Bank and African Development Bank program to connect 300 million people in Sub-Saharan Africa by 2030.

Electricity access in Mozambique has increased from 31% in 2018 to 60% in 2024, with Electricidade de Moçambique connecting more than half a million homes in 2024 alone. Large-scale hydropower will provide foreign exchange through energy exports, while off-grid solar and hybrid systems remain essential for reaching remote communities. Together, Mphanda Nkuwa and ASCENT represent a combined strategy: high-capacity generation to power industry and exports, paired with distributed solutions for rural households. These projects highlight the importance of integrating mega-infrastructure with localized, resilient networks.