Mozambique is set to receive major backing from the World Bank for its $6.4 billion hydropower and transmission project, a key step in the country’s ambition to become a regional energy hub in southern Africa.
The multilateral lender will provide a mix of debt, equity, risk guarantees, and insurance for the 1,500 megawatt (MW) Mphanda Nkuwa dam on the Zambezi River, as well as a $1.4 billion transmission line connecting the north to the southern part of the country.
Ajay Banga, the World Bank’s president, disclosed the funding plan during a visit to Mozambique, adding that the dam is expected to be operational by 2031.
If successful, the project would be the largest hydroelectric facility built in southern Africa in 50 years. The Mphanda Nkuwa plant is part of a broader World Bank-backed initiative, known as Mission 300, which aims to connect 300 million people in sub-Saharan Africa to electricity by 2030.