The World Bank has announced a major commitment of $6.4 billion for the construction of the Mphanda Nkuwa Hydropower Plant on the Zambezi River in Mozambique, according to Bloomberg, referencing World Bank President Ajay Banga. This future hydroelectric facility is set to become the largest in Southern Africa.

💰 Investment Breakdown
Of the total funding, $5 billion will be allocated to building the power plant itself, while an additional $1.4 billion is earmarked for the construction of transmission lines. Banga noted the World Bank's readiness to provide loans, guarantees, risk insurance, and even capital participation in the project.

🌱 Part of Mission 300 Initiative
The hydropower plant project is a central element of the "Mission 300" initiative, which aims to deliver electricity access to 300 million people in Sub-Saharan Africa by 2030.

⚡ Project Details
The new plant will have a generation capacity of 1,500 MW and is expected to be operational by 2031. Its location is downstream of the existing Cahora Bassa plant, which was built in 1974.

The project will be carried out by a consortium including France's Electricite de France SA, TotalEnergies SE, and Japan's Sumitomo Corp. The Mozambican government and Hidroeléctrica de Cahora Bassa, its state-owned company, will also receive stakes in the project.

🏦 Financial and Technical Support
The World Bank will channel its support through several branches:
- International Finance Corporation (IFC) for financing,
- International Bank for Reconstruction and Development (IBRD) for risk guarantees,
- International Development Association (IDA) for concessional funding towards building 1,300 km of transmission infrastructure.

🔌 Expanding Regional Connectivity
The new transmission lines will connect the power station with Mozambique's southern energy grid, enabling electricity delivery to the capital Maputo and neighboring countries such as Zambia, Malawi, and Zimbabwe. The initiative also includes plans for smaller power plants and a 400 MW solar station.

📈 Socio-Economic Impact
Currently, 64% of Mozambique's 33 million people have access to power—twice as many as in 2018. The hydropower project aims to boost energy export revenues—which reached $240 million in 2024—and support the growth of industries like mineral processing, especially graphite and beryl.

More broadly, this investment could strengthen Mozambique's position as an energy exporter in the region while addressing electricity needs domestically.

🇪🇹 Regional Comparison
Recently, Ethiopia completed construction of the Grand Ethiopian Renaissance Dam on the Blue Nile, which at over 6,000 MW, is now Africa's largest hydropower plant—though its commissioning has led to tensions with Egypt and Sudan over water resource concerns.

By supporting major projects like Mphanda Nkuwa, the World Bank is underlining its role in addressing Africa's growing energy demands and promoting regional development.

Reported by Evgeniya Mylnikova