Mozambique, in collaboration with the African Development Bank (AfDB), is advancing plans to secure financing for the $4.5 billion Mphanda Nkuwa Hydropower Project, a landmark initiative aimed at strengthening the country’s energy infrastructure and boosting regional power exports.
On 5 February 2026, a high-level technical workshop was held at the AfDB’s Country Office in Maputo, bringing together representatives from the Ministry of Finance, Ministry of Mineral Resources and Energy, Electricidade de Mozambique (EDM), the Mphanda Nkuwa Implementation Office (GMNK), and the African Development Bank. The workshop focused on operationalising a Credit Enhancement facility designed to de-risk the project and attract private capital, ultimately reducing the cost of energy for Mozambique.
Throughout the project’s development, the African Development Bank has acted as a strategic adviser to the government, supporting a transparent framework that enabled the selection of a reputable strategic investor consortium. The project is now prepared to begin discussions on its security structure, with a Partial Risk Guarantee (PRG) identified as a critical component for bankability.
The Mozambican government has requested a PRG facility to backstop EDM’s liquidity obligations, mitigating off-taker risk for international lenders. Additionally, AfDB plans to mobilise concessional and grant funding to support the regional transmission line, which will carry power from the Mphanda Nkuwa Hydropower Project to industrial centres and facilitate exports to neighbouring countries.
Rômulo Corrêa, Country Manager at AfDB, stated that the workshop represents a shift from advisory to execution, emphasizing the bank’s role in de-risking the project and securing a financing framework that positions Mozambique as a regional energy leader under its ADF-17 mandate to “Unlock Capital at Scale.”
Once operational, the 1,500 MW run-of-river Mphanda Nkuwa Hydropower Project will provide universal energy access across Mozambique, supply competitive power to industries, and serve as a baseload exporter to the Southern African Power Pool (SAPP), generating hard currency revenues for the country.
The project is being developed by a strategic consortium comprising EDF (France) and TotalEnergies (France), in partnership with public sector entities EDM and HCB, highlighting a collaboration between international investors and Mozambican authorities.
