![[Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years](https://theafricanbusiness.com/wp-content/uploads/2023/02/TALA-APP-360x180.jpg "[Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years 17")
IFC and Mphanda Nkuwa Implementation Office sign agreement to support hydropower project in Mozambique
To increase access to clean energy in Mozambique and other Southern African countries, IFC and the Ministry of Mineral Resource and Energy (MIREME), through the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK), announced a collaboration to develop a 1,500-megawatt hydropower project and associated transmission facilities.
Once complete, the Mphanda Nkuwa Hydropower Project is expected to supply power to meet the growing domestic demand in Mozambique and transform the country into a regional energy hub. The rest of the project’s output is expected to be exported to neighboring countries, including South Africa, where demand for clean energy is high. The project will also accelerate the transition to clean energy to combat climate change in Southern Africa.
The estimated US$4.5 billion project will comprise a dam, a power-station, and a high voltage transmission infrastructure of 1,300 Km from the project site in Tete Province to Maputo, Mozambique’s capital. The project is scheduled for completion in 2031.
“Mphanda Nkuwa is poised to support the achievement of the Government’s vision of universal access to electricity by 2030, stimulate industrialization and boost growth through reliable transmission infrastructure and competitive power” said Carlos Yum, Director of Mphanda Nkuwa Hydroelectric Project Implementation Office.
“Clean and sustainable energy is a key driver of economic and social development. We are pleased to leverage IFC’s experience in developing and financing large hydropower projects in Africa and globally to boost Mozambique’s supply of affordable renewable energy and meet the country’s growing demand for power,” said Carlos Katsuya, IFC’s Senior Country Manager for Mozambique.
IFC will work with the government in collaboration with GMNK to structure this important project, including the review of technical design, environmental safeguards, commercial and financial structuring. The goal is to help mobilize competitive private investment to bring the project into commercial operation and support the country’s sustainable energy transition.
