Mozambique seeks funding for Mphanda Nkuwa in London

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Mozambique seeks funding for Mphanda Nkuwa in London

1:07 CAT | 10 Jun 2025

Image: Cameraman

The Mozambican government is seeking funding for the construction of the Mphanda Nkuwa dam (MNK) and is exhibiting the project in London as a way of mobilizing more investment.

The renewable energy project, budgeted at around US$5 billion, is to be built on the Zambezi River, in Tete province, central Mozambique, with financial closing scheduled for 2027.

The government presented the initiative during the high-level session it held in partnership with the Tony Blair Institute for Global Change (TBI), an event held within the scope of Mission 300, and the Mozambique National Energy Compact, according to a press release from the Implementation Office of the Mphanda Nkuwa Hydroelectric Project (GMNK).

Structured according to the ‘Build, Own, Operate, and Transfer (BOOT)’ model, the project represents the largest investment in public-private infrastructure in Mozambique, and is a key part of the national energy strategy to position the country as a regional exporter of clean energy and an industrial hub.

READ: Mission 300 gains momentum as Burundi, Ghana, Mozambique, Togo and Zimbabwe submit transformative national energy compacts to connect more people to electricity by 2030

“Mozambique is firmly committed to becoming a leading regional energy hub, contributing to inclusive growth, climate resilience and industrialisation across the region,” says Mozambique’s Minister of Mineral Resources and Energy, Estevão Pale, quoted in the note.

“Our national energy strategy,” he adds, “is based on expanding access to energy, diversifying generation, green industrialisation and accelerating the transition to low-carbon sources, with hydroelectric power playing a central role.”

According to Pale, the Mphanda Nkuwa project is a priority for the Mozambican government because it simultaneously provides an internal and regional response to the challenges of economic and social development.

“This is a clean energy project that will shape the next chapter in the economic integration and climate resilience of Mozambique and the region,” he stresses.

The Mphanda Nkuwa Hydroelectric Project is expected to start commercial operations in 2032, and, once in operation, will significantly expand the regional energy supply, strengthen national electrification and drive long-term industrial growth in Mozambique and southern Africa.

The Mphanda Nkuwa hydroelectric project includes a run-of-river dam located 61 kilometres downstream from the Cahora Bassa dam, also installed on the Zambezi River in Tete, and a high-voltage power transmission line of approximately 1,300 kilometres from Tete to Maputo, in the south of the country.

International investors participated in the event, as well as senior representatives from the World Bank, International Finance Corporation (IFC),the Multilateral Investment Guarantee Agency (MIGA) and the African Development Bank (AfDB), key partners in the development of the project.

The Mphanda Nkuwa consortium of strategic investors, led by Électricité de France (Electricity of France), the French oil company TotalEnergies and the Japanese multinational Sumitomo Corporation, also participated in the London event.

Source: AIM Moçambique