In order to increase access to clean energy in Mozambique and other Southern African countries, the International Finance Corporation (IFC) and the ministry of Mineral Resources and Energy (MIREME), through the Mphanda Nkuwa Hydropower Project Implementation Office (GMNK), announced today a collaboration to develop the 1,500 Megawatt Hydropower project and associated power transmission infrastructure.

According to the statement that MZNews had access to, the Hydropower Project will provide energy to meet the growing domestic demand in Mozambique and turn the country into a regional energy hub. The remaining energy production is expected to be exported to neighboring countries, including South Africa, where demand for clean energy is high.

The statement said the project will also accelerate the energy transition to clean energy in southern Africa to combat climate change. With an estimated cost of US$4.5 billion, the project includes the development of a dam, a hydroelectric plant with a capacity of up to 1,500 megawatts and a 1,300 km high voltage electricity transmission line from the project site in the province of Tete to Maputo, Mozambique's capital.

The development is scheduled for completion in 2031. "Mphanda Nkuwa will contribute in realizing the government's vision for universal access to electricity in the country by 2030, stimulate rapid industrialization, and drive growth through a reliable, transport infrastructure, and competitive power supply," said Carlos Yum, director of the Mphanda Nkuwa Hydropower Project Implementation Office. "Clean and sustainable energy is a key driver of economic and social development. We are pleased to leverage IFC's experience in developing and financing large hydropower projects in Africa and globally to boost the supply of affordable renewable energy in Mozambique and meet the country's growing demand for energy," said Carlos Katsuya, IFC's Senior Director for Mozambique.

IFC will work with the Government of Mozambique, in collaboration with GMNK, to structure this important project, including technical design review, environmental safeguards, commercial and financial structuring. The objective is to help mobilize competitive private investment to bring the project into commercial operation and support the country's sustainable energy transition.

Note that IFC is a member of the World Bank, and is the largest global development finance institution focused on the private sector and emerging markets.