The World Bank has described the emerging electricity trends in Mozambique as positioning the country to become an “electricity hub” for the Southern African region.
The President of the financial institution, Ajay Banga, made this remark during a visit to the country’s Cahora Bassa Hydroelectric Plant.
The dam is the largest in Mozambique and has an installed capacity of 2,075 MW.
Banga noted that the country needs a strong public-private partnership to sustain growth and maintain momentum.
“Mozambique will become an electricity hub for southern Africa, within the next ten years”, the president said.
In addition, Banga emphasized collaboration with the Mozambican government to advance energy initiatives, aligning with President Daniel Chapo’s commitment to transformative energy projects.
The Cahora Bassa expansion plan
Meanwhile, the Cahora Bassa dam, the foundation of Mozambique’s energy infrastructure, is set for expansion with a proposed second power station on the river’s north bank.
This facility, expected to generate 1,250 megawatts, could begin construction in 2028 and be operational by 2033.
In 2024, the Cahora Bassa Hydroelectric plant earned a profit of $220 million, hence this expansion.
Banga likened the project’s complexity to an orchestra, requiring coordinated efforts through public-private partnerships to ensure success.
“You have to play many musical instruments to create harmony”, he said. “I think this is the partnership we are discussing”, said Banga.
However, progress has been stalled due to the reluctance of South Africa’s Eskom, the region’s primary buyer, to commit to purchasing the additional electricity.
In addition, the Mphanda Nkuwa dam represents another critical step in Mozambique’s energy ambitions.
Broader economic impact and World Bank support
While energy remains the priority, Banga noted that the World Bank is exploring other sectors to diversify Mozambique’s economy.
The focus on energy stems from its potential to catalyze industrial growth and regional trade.
By fostering public-private partnerships, the World Bank aims to unlock financing for large-scale projects, reducing reliance on public funds alone.
“If we look at a 10-year vision shared by this President, which I also share, the goal is to turn Mozambique into an energy powerhouse and make it the energy back office of southern Africa.
“I think this is a real opportunity and something we should work on together,” said Ajay Banga.
This approach is expected to enhance Mozambique’s position as a key energy supplier in southern Africa, supporting economic stability and development.
