State to sell 7.5% of Cahora Bassa

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State to sell 7.5% of Cahora Bassa

9:10 CAT | 28 Nov 2017

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President Filipe Nyusi announced yesterday that the state would sell 7.5 percent of Cahora Bassa’s hydroelectric power company shares on the local stock market.

The head of state announced the decision to open the shareholder structure of HCB to Mozambicans in Tete during celebrations of the 10th anniversary of the reversion of the hydroelectric company from Portugal to Mozambique.

The Mozambican head of state explained 7.5 percent of the total shares of HCB would be made available to citizens and companies through the Mozambique Stock Exchange (BVM).

“HCB will have Mozambican citizens as shareholders in addition to the state and other existing shareholders,” Nyusi said, characterising the measure as “another act of inclusion and transparency” but without revealing further details of the stock exchange operation.

“All state-owned or state-managed enterprises should be managed in line with the principles of profitability and transparency, capable of generating profits and contributing to the state’s coffers,” he added.

Figures disclosed yesterday show that HCB produced 15,000 gigawatts of energy in 2016, against 17,000 gigawatts in 2015, the drop being caused by the severe drought affecting Southern Africa.

The company projects 2017 production at more than 14,000 gigawatts.

HCB is 85 percent owned by the Mozambican state, following the reversion agreement signed with Portugal, which previously controlled the dam.

Located on the Zambezi River in Tete province, central Mozambique, the dam is the largest in Southern Africa. Construction started in 1969 and power generation in 1977. In addition to supplying the Mozambique market, HCB supplies electricity to several countries in Southern Africa.

Source: Lusa