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The African Development Fund (ADF), the concessional financing arm of the African Development Bank (AfDB) Group, has approved a significant USD 43.6 million investment package to support the construction of a critical power infrastructure project in Mozambique. The initiative centers around the development of the Namaacha–Boane transmission line, a key component in the country’s broader strategy to expand access to clean energy and transition toward a low-carbon economy.
The financial package comprises two main components: a USD 33.2 million allocation from the ADF itself, supplemented by an additional USD 10.4 million from the Fund’s Climate Action Window. This latter contribution is part of a targeted mechanism designed to finance climate-resilient infrastructure in 37 low-income African nations that are signatories to the Paris Agreement. The Government of Mozambique will also provide complementary funding to ensure the project’s completion.
At the heart of the initiative is the construction of a transmission line to transport up to 332 gigawatt-hours of electricity annually from the 120 MW Namaacha Wind Farm, located approximately 50 kilometers west of the capital city, Maputo. This renewable energy project will significantly contribute to diversifying Mozambique’s energy mix and strengthening its position as a regional energy hub through its active participation in the Southern African Power Pool (SAPP).
Wale Shonibare, Director of the Bank’s Energy Financial Solutions, Policy, and Regulations Department, emphasised the strategic value of the project: “This investment strengthens the backbone of Mozambique’s power system while accelerating access to clean energy for people who need it most.”
The implementation of the project will be led by Mozambique’s national electricity utility, Electricidade de Moçambique (EDM), in partnership with Central Eléctrica da Namaacha (CEN)—a private sector joint venture between Globeleq Africa Limited and Source Energia. The construction involves the deployment of two parallel 43-kilometer, 66-kilovolt single-circuit transmission lines, along with upgrades to the surrounding power network infrastructure to enhance system reliability and resilience.
Beyond delivering electricity to underserved rural and peri-urban communities, the project is expected to generate multiple environmental and economic benefits. It will help avoid approximately 71,000 tonnes of CO₂ emissions annually, contributing to global climate goals. Furthermore, by facilitating stable and affordable electricity, it will support local industries, create employment opportunities, and promote economic development across the region.
Kevin Kariuki, the Bank’s Vice President for Power, Energy, Climate, and Green Growth, highlighted the broader implications:“This project is a major step forward. It will deliver affordable electricity, support local industry, and improve livelihoods.”
Read Also;
https://trendsnafrica.com/mozambique-committed-to-transition-to-renewable-energy/
In summary, this strategic investment marks a crucial milestone in Mozambique’s journey toward energy sustainability and regional cooperation. It reflects a robust commitment from both public and private stakeholders to ensure that clean, reliable, and affordable power becomes a catalyst for inclusive growth across Southern Africa.
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