The United States Government has awarded a $5 million grant to support the second and third phases of the Chimuara Nacala transmission line project in Mozambique.
The funding, channelled through the U.S. International Development Finance Corporation (DFC), will help speed up the development of the 460 kilometre power transmission infrastructure connecting central and northern Mozambique.
The Chimuara Nacala project is being developed by Grid works, a company owned by British International Investment (BII) the United Kingdom’s Development Finance Institution.
Grid works is working in partnership with Electricidade de Moçambique (EDM), the national electricity utility of Mozambique, to deliver the country’s first privately financed Independent Transmission Project (ITP).
This is the first time DFC is providing a development grant for a power transmission project in Africa.
The agency said it is supporting Grid works’ technical, environmental and legal groundwork to accelerate the project’s move towards financial close.
Grid works Interim Chief Executive Officer, Chris Flavin, said the Chimuara Nacala line is a critical part of Mozambique’s energy backbone.
“This high voltage transmission line will connect the central and northern regions of the country. It will create economic opportunities and support the government’s ambition of universal electricity access,” he said.
Mateo Goldman, DFC Senior Vice President of Investments, also noted that energy independence is crucial for both regional stability and national growth.
“DFC is proud to partner with Grid works to advance energy security in Mozambique. This strategic investment strengthens local capacity and lays the groundwork to mobilise private capital for future infrastructure,” he added.
Rising energy needs in Mozambique
Mozambique has one of the lowest electricity access rates in Southern Africa, with only half of its population connected to the grid.
The government is prioritising projects that increase access, improve network reliability and support industrial development. The Chimuara Nacala project is among the country’s highest priority energy infrastructure initiatives.
Phase I of the project, currently under construction by EDM, includes a 400kV transmission line from Alto Molócuè to Namialo, covering 272 kilometres.
Subsequent phases will add a 220kV line from Namialo to Nampula (98 kilometres) and another from Namialo to Nacala à Velha (90 kilometres).
The development also involves the construction of new substations in Namialo and Nacala à Velha, as well as an expansion of the substation in Nampula.
According to Grid works, these additions will enhance grid capacity, improve transmission efficiency and enable more power generation to reach under served regions.
The project is seen as a step forward in Mozambique’s plan to attract private investment into its infrastructure and reduce the government’s financial burden on national development.
Grid works, which focuses on electricity transmission and distribution across Africa, is developing similar projects to bring clean, affordable and reliable energy to homes and businesses on the continent.
