The African Development Bank (AfDB) has approved a loan of 125 million euros to Hidroeléctrica de Cahora Bassa (HCB) in Mozambique to support a program to modernize the electricity production system, it announced in a statement.

"The package includes up to 100 million euros from the African Development Bank and up to 25 million euros from the Africa Growing Together Fund," the document said, quoted by Lusa.

The modernization aims to "extend the plant's useful life" of hydroelectric production for another 25 years.

The vice-president of the ADB, Kevin Kariuki, said that the reinforcement of Cahora Bassa "will facilitate greater integration of variable renewable energy sources such as solar photovoltaics and wind power throughout the region".

According to the bank, the loan is in line with one of its strategic objectives, that of "lighting up and energizing Africa".

HCB is presented as the largest energy producer in southern Africa and supplies Mozambique, South Africa and other countries in the Southern African Development Community (SADC).