AfDB Approves $43.6M to Power Mozambique’s Green Energy Future

In a major boost to southern Africa's clean energy ambitions, the Board of Directors of the African Development Bank Group has greenlit a substantial $43.6 million financing package to construct the Namaacha–Boane Transmission Line and related electricity infrastructure in Mozambique. This initiative marks a pivotal milestone in the country’s ongoing efforts to transition toward a low-carbon, inclusive energy system and expand electrification across rural and underserved areas.

Catalyzing Clean Energy with Strategic Infrastructure

The centerpiece of the project is the construction of two new 43-kilometre, single-circuit, 66-kilovolt transmission lines designed to channel up to 332 gigawatt-hours of clean wind energy annually. This energy will be sourced from the upcoming 120 MW Namaacha Wind Farm, a strategic renewable energy installation located in Mozambique’s southwestern region. The infrastructure will ensure efficient power delivery from the wind farm to consumers throughout Mozambique and further across the Southern African Power Pool (SAPP), reinforcing regional energy interconnectivity.

Alongside the transmission lines, critical upgrades to existing power infrastructure will be undertaken to ensure system stability and resilience. These improvements will enable thousands of new electricity connections, predominantly in rural and marginalized communities, where energy poverty continues to limit socio-economic development.

Multilateral Financing for Climate Resilience

Of the approved financing, $33.2 million is being provided by the African Development Fund, the concessional arm of the Bank Group, while $10.4 million will be drawn from the Bank’s Climate Action Window (CAW). The CAW is a specialized funding mechanism established to assist 37 low-income African nations in building climate-resilient infrastructure, aligned with the global commitments under the Paris Agreement.

The Government of Mozambique will also co-finance the project, demonstrating its commitment to improving energy access while mitigating the impact of climate change.

Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, hailed the initiative as transformative:

“This project is a major step forward in Mozambique’s transition to a low-carbon energy future. It will deliver affordable electricity, support local industry, and improve livelihoods.”

A Public-Private Implementation Model

The implementation of the Namaacha–Boane Transmission Line project will be led by Electricidade de Moçambique (EDM), the country’s national power utility. EDM will work in collaboration with Central Eléctrica da Namaacha (CEN), the private-sector-led developer of the Namaacha Wind Farm. CEN is a joint venture involving key regional energy players—Globeleq Africa Limited and Source Energia—bringing vital private sector expertise and capital to the initiative.

This public-private partnership model is increasingly viewed as a sustainable approach to infrastructure development, aligning financial sustainability with social and environmental outcomes.

Tackling Emissions and Expanding Access

The project is expected to significantly contribute to environmental sustainability. Once operational, the transmission infrastructure will enable the reduction of over 71,000 tons of carbon dioxide emissions each year. Furthermore, by extending electricity access to remote communities, the project directly supports improvements in health, education, and local economic productivity.

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

Supporting Continental Energy Goals

This initiative directly supports the African Development Bank’s “Light Up and Power Africa” strategic priority, one of its core High 5 goals. It also advances Mozambique’s national objective of achieving universal electrification by 2030 under the "Mission 300" initiative.

Launched in 2024 by the African Development Bank in partnership with the World Bank and various governments and private entities, Mission 300 aims to bring electricity access to 300 million Africans by 2030. It is a direct response to the staggering reality that more than 600 million people on the continent still live without access to power—more than any other region in the world.

By leveraging both public and private investment, Mission 300 aspires to modernize Africa’s power sectors, scale up renewable generation, and enable affordable, sustainable access for all.

Looking Ahead

As Mozambique continues to emerge as a regional leader in clean energy, the Namaacha–Boane Transmission Line represents not just a critical piece of infrastructure, but a beacon of what multilateral cooperation and strategic investment can achieve. With construction slated to begin soon, the project sets a precedent for future renewable energy developments across the African continent—linking clean generation, climate goals, and social upliftment into one bold effort.