African Development Fund approves $43.6 million for 120 MW Mozambique transmission line project – AfDB

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African Development Fund approves $43.6 million for 120 MW Mozambique transmission line project – AfDB

8:54 CAT | 23 May 2025

FILE - For illustration purposes only. [File photo: Courtesy of Globeleq]

African Development Fund backs 120 MW wind transmission line to connect rural communities, cut emissions, and boost Southern Africa’s clean energy trade.

The Board of Directors of the African Development Bank Group has approved $43.6 million in financing for the construction of the Namaacha–Boane Transmission Line and related electricity infrastructure in Mozambique.

The new infrastructure will transmit up to 332 gigawatt-hours of clean wind energy from the future 120 MW Namaacha Wind Farm in the southwestern part of the country to homes and businesses across Mozambique and the wider Southern Africa region.

The financing comprises $33.2 million from the African Development Fund and $10.4 million sourced from its Climate Action Window – a dedicated fund supporting 37 low-income African countries with climate-resilient infrastructure to meet commitments under the Paris Agreement. The Government of Mozambique is also contributing to the project.

“This project is a major step forward in Mozambique’s transition to a low-carbon energy future,” says Kevin Kariuki, the Bank Group’s Vice President for Power, Energy, Climate, and Green Growth. “It will deliver affordable electricity, support local industry, and improve livelihoods.”

Mozambique’s national power utility, Electricidade de Moçambique, will implement the project in partnership with Central Eléctrica da Namaacha, (CEN) the project company. CEN is a private sector led development involving Globeleq Africa Limited and Source Energia .

Under the project, two new 43-kilometre, single-circuit, 66-kilovolt transmission lines will be constructed in addition to network upgrades and equipment to ensure stable power delivery

Once completed, the project will support thousands of new electricity connections in rural and underserved communities. It will also cut carbon dioxide emissions by over 71,000 tons annually and bolster the regional trade in energy within the Southern African Power Pool.

“This investment strengthens the backbone of Mozambique’s power system while accelerating access to clean energy for people who need it most,” said Wale Shonibare, Director of the Bank’s Energy Financial Solutions, Policy, and Regulations Department.

The project aligns with the African Development Bank’s “Light Up and Power Africa” strategic priority as well as Mozambique’s goal, in alignment with the Mission 300 initiative, to achieve universal electrification by 2030.

Over 600 million people in Africa lack access to electricity, the lowest access rate of any continent. In response, the African Development Bank, the World Bank and other partners launched Mission 300 in 2024. The initiative is bringing together African governments, the private sector, and development partners to deliver affordable power, expand electricity access, boost efficiency, and attract private investment to the sector.

Source: African Development Bank - AfDB / Press Release