Mozambique Secures $5 Billion World Bank Funding for Major Hydropower Initiative

Mozambique has received formal backing from the World Bank for the construction of a $5 billion hydropower plant, marking a pivotal step in its national energy strategy. The project, announced in July 2025, is designed to expand the country’s electricity generation capacity and serve as a regional hub for power distribution across sub-Saharan Africa.

The hydropower initiative is part of a broader plan to connect 300 million people in the region by 2030. This ambitious goal is aimed at addressing the persistent energy deficits that have hindered economic development in many African countries. With its strategic location and access to major river systems, Mozambique is positioned to play a central role in regional energy infrastructure.

The World Bank’s financial support underscores the institution’s commitment to sustainable development and infrastructure growth in Africa. The funding will be allocated toward the construction, operation, and maintenance of the hydropower facility, ensuring long-term reliability and environmental sustainability. The project is expected to leverage Mozambique’s existing water resources to generate clean, renewable energy.

Infrastructure development is a key pillar of the national energy strategy, with the hydropower plant serving as a cornerstone of that effort. The initiative aligns with regional energy integration plans and is anticipated to significantly boost Mozambique’s energy exports. By increasing local generation capacity, the country aims to reduce its reliance on imported fuels and strengthen its position as a key energy player in the region.

The project is also expected to create thousands of jobs during the construction and operational phases, contributing to national economic growth. It is anticipated that the energy generated will be distributed through regional power grids, supporting industrial and residential consumption across multiple countries. This development is seen as a major step toward achieving universal electricity access in sub-Saharan Africa by 2030.

Mozambique’s government has emphasized the importance of international partnerships in advancing national and regional energy goals. The World Bank’s involvement provides not only financial support but also technical expertise and policy guidance. This collaboration is expected to ensure that the project adheres to global standards for environmental and social impact mitigation.

The hydropower plant is one of several large-scale infrastructure projects currently under development in Mozambique. These efforts are part of a comprehensive strategy to modernize the country’s energy sector and support long-term economic resilience. With the backing of the World Bank, the project is now set to move into the implementation phase, with construction expected to begin in the coming months.