African Development Fund Approves $43.6M to Boost Mozambique’s 120 MW Wind Energy Transmission Project

The African Development Bank Group has approved $43.6 million in financing to support the construction of the Namaacha–Boane Transmission Line, a critical piece of infrastructure that will help deliver clean wind energy from southwestern Mozambique to communities across the country and the wider Southern Africa region.

The transmission project will channel up to 332 gigawatt-hours of renewable energy annually from the planned 120 MW Namaacha Wind Farm.

Once completed, it will not only electrify thousands of rural and underserved households but also strengthen Mozambique’s electricity backbone and contribute to regional energy trade through the Southern African Power Pool.

The funding package includes $33.2 million from the African Development Fund and an additional $10.4 million from the Fund’s Climate Action Window, an initiative supporting 37 low-income African countries in building climate-resilient infrastructure in line with the Paris Agreement. The Government of Mozambique is also providing counterpart funding for the project.

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

Mozambique’s national utility, Electricidade de Moçambique (EDM), will implement the project in collaboration with Central Eléctrica da Namaacha (CEN), the private-sector-led developer behind the Namaacha Wind Farm.

CEN is a joint venture between Globeleq Africa Limited and Source Energia, both major players in Africa’s renewable energy space.

The project scope includes the construction of two new 43-kilometre, single-circuit, 66-kilovolt transmission lines, alongside essential network upgrades and equipment to ensure a stable and efficient electricity supply.

The infrastructure is expected to significantly reduce carbon dioxide emissions, by more than 71,000 tons annually, while enabling greater clean energy access for communities most in need.

“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 transmission line supports the African Development Bank’s “Light Up and Power Africa” strategic priority and Mozambique’s national goal to achieve universal electricity access by 2030.

That ambition is further underscored by the Mission 300 initiative, launched in 2024 by the Bank in collaboration with the World Bank and development partners.

The initiative aims to expand energy access, enhance power sector efficiency, and mobilize private capital across the continent, where over 600 million people still lack electricity.

This latest investment not only fuels Mozambique’s clean energy transition but also sets a precedent for climate-conscious development in Africa’s power sector.

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