AfDB approves $43.6 million to power Mozambique's clean energy future

The funds will support the construction of the Namaacha–Boane Transmission Line and related upgrades, which will carry up to 332 gigawatt-hours of clean wind energy annually from the forthcoming 120 MW Namaacha Wind Farm to communities across Mozambique and the broader Southern Africa region.

The financing package includes $33.2 million from the African Development Fund and an additional $10.4 million from the Bank’s Climate Action Window, a dedicated fund assisting 37 low-income African nations in building climate-resilient infrastructure in line with the Paris Agreement.

“This project is a major step forward in Mozambique’s transition to a low-carbon energy future,” says Kevin Kariuki, the Bank Group’s Vice President for Power, Energy, Climate, and Green Growth, adding that, “It will deliver affordable electricity, support local industry, and improve livelihoods.”

The project includes the construction of two 43-kilometre, single-circuit, 66-kilovolt transmission lines, as well as critical network upgrades and equipment to ensure stable power delivery. Once operational, the system will enable thousands of new electricity connections, particularly in rural and underserved areas.

It is also expected to reduce carbon dioxide emissions by more than 71,000 tons annually and strengthen regional energy trade through the Southern African Power Pool.

“This investment strengthens the backbone of Mozambique’s power system while accelerating access to clean energy for people who need it most,” said Wale Shonibare, Director of the Bank’s Energy Financial Solutions, Policy, and Regulations Department.

The initiative forms part of the African Development Bank’s “Light Up and Power Africa” strategy and supports Mozambique’s national objective of achieving universal electrification by 2030 under its Mission 300 roadmap.