Mozambique embraces a $6 billion electricity project, southern Africa’s biggest in 50 years – ABC News

Report on Mozambique’s Electrification Initiative and its Contribution to Sustainable Development Goals
Introduction: Aligning National Energy Strategy with Global Goals
Mozambique is undertaking a significant national effort to achieve universal electricity access for its 33 million citizens by 2030. This initiative is fundamentally aligned with the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy). As one of the world’s poorest nations by per capita income, expanding energy access is a critical enabler for progress across multiple development areas, including poverty reduction, economic growth, and public health.
Socio-Economic Impacts of Electrification
Fostering Decent Work and Economic Growth (SDG 8)
The introduction of electricity into rural communities has demonstrated a direct and immediate impact on local economies. The case of Siduava village illustrates how energy access serves as a catalyst for entrepreneurship and job creation.
- Business Empowerment: Small enterprises, such as Hermínio Guambe’s barbershop, have been able to modernize and expand services through the use of electrical appliances.
- Job Creation: Reliable power has stimulated ancillary economic activities, leading to new jobs in local trading and transport sectors.
- Future Opportunities: The prospect of electricity access is inspiring unemployed individuals, like Aurélio Arlindo, to plan new business ventures, such as operating a cold drinks stall.
Advancing Good Health and Well-being (SDG 3)
Access to a stable power supply has tangible benefits for community health. In rural villages, local pharmacies can now utilize refrigeration to stock vital medicines and vaccines, improving healthcare delivery and contributing to SDG 3.
National Strategy and Infrastructure Development
The Mphanda Nkuwa Hydroelectric Project: A Cornerstone for SDG 7 and SDG 9
A central component of Mozambique’s energy strategy is the Mphanda Nkuwa hydroelectric plant, a $6 billion project set to become southern Africa’s largest in 50 years. This project directly supports SDG 9 (Industry, Innovation, and Infrastructure) by building resilient and sustainable infrastructure.
- Capacity: The plant is expected to generate 1,500 megawatts upon its projected completion in 2031.
- Regional Impact: It will help address a 10,000-megawatt energy deficit in the southern African region, potentially earning foreign exchange through energy exports.
- Clean Energy: As a hydropower project, it significantly contributes to increasing the share of renewable energy in the national and regional mix, a key target of SDG 7.
Progress Towards Universal Access
Mozambique has made substantial progress in expanding its electrical grid, managed by the state-run utility Electricidade de Moçambique (EDM).
- Electricity access has nearly doubled, rising from 31% in 2018 to 60% in 2024.
- EDM connected 563,000 homes in 2024 and aims to connect another 600,000 in the following year.
- The strategy incorporates a dual approach, combining large-scale grid expansion with off-grid solutions, primarily solar, to reach remote rural populations and advance SDG 11 (Sustainable Cities and Communities).
International Partnerships and Financial Framework
Multi-Stakeholder Collaboration for the Goals (SDG 17)
The Mphanda Nkuwa project exemplifies SDG 17 (Partnerships for the Goals), moving away from traditional donor reliance towards a model that leverages private sector investment. The World Bank is facilitating this by providing a comprehensive support package rather than direct financing.
- Key Partners: The development consortium includes TotalEnergies, Électricité de France, and Mozambique’s Hidroeléctrica de Cahora Bassa.
- World Bank Support: The Bank’s involvement includes concessional funding for legal and environmental frameworks, partial risk guarantees, and political risk insurance to de-risk the project for private investors.
Financial Challenges and Considerations
While the project promises significant developmental returns, it is situated within a challenging financial context. Mozambique’s public debt rose to approximately $17 billion in the first quarter of 2025, with debt servicing consuming a record $2.1 billion in 2023. Careful management of new debt associated with large-scale infrastructure is critical to ensure long-term fiscal sustainability and the achievement of SDG 1 (No Poverty).
Conclusion: Energy as a Catalyst for Sustainable Development
Mozambique’s electrification drive is a powerful example of how targeted infrastructure investment can unlock progress across the Sustainable Development Goals. By harnessing its abundant renewable resources—including hydro, solar, and gas—and fostering international partnerships, the nation is building a foundation for sustainable economic growth, improved public services, and enhanced quality of life. Overcoming challenges related to debt, security, and the logistical scale of the task will be crucial to realizing the goal of universal, clean, and affordable energy for all Mozambicans by 2030.
Analysis of Sustainable Development Goals in the Article
1. Which SDGs are addressed or connected to the issues highlighted in the article?
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SDG 7: Affordable and Clean Energy
- The entire article is centered on Mozambique’s efforts to expand electricity access to its population, which is the core objective of SDG 7. The text explicitly mentions the country’s goal to “connect all of its 33 million mostly rural citizens to electricity by 2030, largely through renewable energy from hydroelectric, solar and other sources.”
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SDG 8: Decent Work and Economic Growth
- The article directly links electricity access to economic opportunities and job creation. It provides examples like Hermínio Guambe’s barbershop, which could expand its services, and the creation of new jobs as “trading and transport picked up.” The hope of an unemployed man, Aurélio Arlindo, to “open a cold drinks stall” further illustrates this connection.
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SDG 9: Industry, Innovation and Infrastructure
- The development of the “$6 billion Mphanda Nkuwa hydroelectric plant” is a major infrastructure project aimed at providing reliable energy. This directly supports the goal of building resilient infrastructure to foster economic development and human well-being.
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SDG 1: No Poverty
- The article identifies Mozambique as “one of the world’s poorest countries by per capita income.” By providing electricity, the projects discussed aim to create economic opportunities that can lift people out of poverty, as exemplified by the new businesses and jobs being created.
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SDG 3: Good Health and Well-being
- A direct link to health is made with the example that “The village pharmacy stocks vital medicines requiring refrigeration.” This shows how reliable electricity is essential for improving healthcare infrastructure and ensuring access to essential medicines.
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SDG 17: Partnerships for the Goals
- The Mphanda Nkuwa project is a multi-stakeholder partnership involving the government of Mozambique, the World Bank, and private companies like “TotalEnergies, French utility Électricité de France and Mozambique’s Hidroeléctrica de Cahora Bassa.” This collaboration is a clear example of the partnerships needed to achieve the SDGs.
2. What specific targets under those SDGs can be identified based on the article’s content?
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Under SDG 7 (Affordable and Clean Energy):
- Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services. The article explicitly states Mozambique’s aim “to connect all of its 33 million mostly rural citizens to electricity by 2030.”
- Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The plan to achieve universal access is “largely through renewable energy from hydroelectric, solar and other sources,” with the Mphanda Nkuwa hydroelectric plant being the centerpiece.
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Under SDG 8 (Decent Work and Economic Growth):
- Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation. The article highlights how the arrival of power led to the creation of new businesses and jobs, stating, “These are the kinds of businesses that drive economies.”
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Under SDG 9 (Industry, Innovation and Infrastructure):
- Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… to support economic development and human well-being, with a focus on affordable and equitable access for all. The construction of the Mphanda Nkuwa hydroelectric plant is a direct effort to develop such infrastructure.
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Under SDG 1 (No Poverty):
- Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. The economic opportunities created by electrification, such as new businesses and jobs, are a direct means of reducing poverty in one of the “world’s poorest countries.”
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Under SDG 3 (Good Health and Well-being):
- Target 3.8: Achieve universal health coverage, including… access to safe, effective, quality and affordable essential medicines and vaccines for all. The ability of the village pharmacy to stock “vital medicines requiring refrigeration” is a tangible step towards improving access to essential medicines, contributing to this target.
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Under SDG 17 (Partnerships for the Goals):
- Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The project’s structure, involving the World Bank, private energy firms (TotalEnergies, Électricité de France), and Mozambique’s state-owned enterprises, exemplifies this type of multi-stakeholder partnership.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
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For SDG 7 (Affordable and Clean Energy):
- Indicator 7.1.1 (Proportion of population with access to electricity): The article provides precise data for this indicator, stating that “Electricity access in Mozambique has nearly doubled from 31% in 2018 to 60% in 2024.” It also mentions the number of connections made: “563,000 homes in 2024” with a plan for “600,000 this year.”
- Indicator 7.2.1 (Renewable energy share in the total final energy consumption): Progress can be measured by the new capacity from renewable sources. The article specifies the Mphanda Nkuwa plant “is expected to generate 1,500 megawatts” from hydropower. It also notes that “About 10% of electricity access in Mozambique comes from off-grid projects, and more are being rolled out,” many of which are solar.
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For SDG 8 (Decent Work and Economic Growth):
- The article implies indicators through qualitative examples rather than specific data. These include the number of new businesses created (barbershop, pharmacy, cold drinks stall), the expansion of existing businesses (using hair dryers), and an increase in “trading and transport.” These can be seen as proxies for measuring job creation and economic diversification.
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For SDG 9 (Industry, Innovation and Infrastructure):
- An indicator is the financial investment in infrastructure, cited as the “$6 billion Mphanda Nkuwa hydroelectric plant.” Another is the increase in power generation capacity, which will be “1,500 megawatts” from this single project.
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For SDG 17 (Partnerships for the Goals):
- The existence and structure of the partnership itself serve as an indicator. The article details the roles of the partners, with the World Bank providing “concessional funding for legal and environmental issues and transmission lines, partial risk guarantees and political risk insurance,” and private firms developing the plant. The total project cost of “$5 billion to $6 billion” is an indicator of the financial resources mobilized through this partnership.
4. Summary Table of SDGs, Targets, and Indicators
SDGs | Targets | Indicators |
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SDG 7: Affordable and Clean Energy |
7.1: Ensure universal access to affordable, reliable and modern energy services.
7.2: Increase substantially the share of renewable energy. |
7.1.1: Proportion of population with access to electricity (Increased from 31% in 2018 to 60% in 2024).
7.2.1: New renewable energy capacity (1,500 MW from Mphanda Nkuwa plant; growth in solar off-grid solutions). |
SDG 8: Decent Work and Economic Growth | 8.3: Promote policies that support productive activities, entrepreneurship, and job creation. | Qualitative evidence of new job and business creation (e.g., barbershop expansion, new pharmacy, transport jobs, planned cold drinks stall). |
SDG 9: Industry, Innovation and Infrastructure | 9.1: Develop quality, reliable, sustainable and resilient infrastructure. | Investment in infrastructure (the $6 billion Mphanda Nkuwa project); Increase in power generation capacity (1,500 MW). |
SDG 1: No Poverty | 1.2: Reduce at least by half the proportion of people living in poverty. | Implied through the creation of economic opportunities for people in one of the “world’s poorest countries.” |
SDG 3: Good Health and Well-being | 3.8: Achieve universal health coverage, including access to essential medicines. | Improved healthcare infrastructure (pharmacy can stock medicines requiring refrigeration). |
SDG 17: Partnerships for the Goals | 17.17: Encourage and promote effective public-private partnerships. | Existence of a multi-stakeholder partnership (Govt. of Mozambique, World Bank, TotalEnergies, Électricité de France); Mobilization of financial resources ($6 billion project cost). |
Source: abcnews.go.com