EDM and HCB authorized to subscribe up to 15 per cent of Mphanda Nkuwa shares – AIM report

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EDM and HCB authorized to subscribe up to 15 per cent of Mphanda Nkuwa shares – AIM report

7:00 CAT | 11 Jul 2025

FILE - For illustration purposes only. [File photo: AIM]

The Mozambican government has authorized the publicly-owned electricity company, EDM, and Hidroelectrica de Cahora Bassa (HCB), the company which operates the Cahora Bassa dam, on the Zambezi River in the central Mozambican province of Tete, to each subscribe up to 15 per cent of the shares in the Mphanda Nkuwa hydro-electric project, also on the Zambezi.

The resolution which approves the measure was recently made public by the Council of Ministers (cabinet).

READ: Mozambique government authorizes EDM and HCB to invest in Mphanda Nkuwa hydroelectric plant

The Mphanda Nkuwa project involves building a dam about 60 kilometres downstream from the existing dam at Cahora Bassa, and a power station that will generate 1,500 megawatts of electricity. There will also be a high voltage transmission line running for 1,300 kilometres from the Zambezi Valley to Maputo.

The construction of the dam and power station is budgeted at 5.5 billion US dollars. During the construction phase, Mphanda Nkuwa will employ about 7,000 workers, and once the power is being generated there will be 3,000 permanent jobs, 95 percent of them occupied by Mozambicans.

The project is supported by the European Union, the European Investment Bank, and the African Development Bank, which, together with EDM, have already promised to disburse over 500 million dollars. Other partners who have pledged support include the French Development Agency, the Southern African Development Bank and the Islamic Development Bank.

Source: AIM