PV Transact
PV Transact

UK commits US$500,000 to advance Mphanda Nkuwa Hydropower Project development in Mozambique

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  • UK funding will support targeted technical assistance for the Mphanda Nkuwa hydropower project through the Tony Blair Institute for Global Change.
  • The project is central to Mozambique’s long term energy strategy with planned capacity of 1,500 megawatts.
  • Total investment is estimated at between US$6 billion and US$7 billion

The United Kingdom has committed US$500,000 to strengthen technical assistance for the development of Mozambique’s Mphanda Nkuwa hydropower project, a flagship initiative for the country’s energy sector.

The funding follows the signing of a memorandum of understanding between the Mphanda Nkuwa Hydropower Project Implementation Office and the British High Commission during a recent visit by UK Trade Envoy and Member of Parliament Calvin Bailey.

According to a statement published on Tuesday, 23 December 2025, by the British consulate in Mozambique, the financial support will be implemented by the Tony Blair Institute for Global Change. The institute will provide specialised technical assistance to the project implementation office over a period of six months, with a focus on strengthening institutional capacity and technical readiness.

Mphanda Nkuwa Hydro project site. Image credit: International Rivers

Mphanda Nkuwa is a cornerstone of Mozambique’s strategy to expand electricity generation and improve energy security. The planned hydropower plant is expected to have an installed capacity of 1,500 megawatts and is scheduled to begin operations in 2031.

The development also includes the construction of a high voltage transmission line of approximately 1,350 to 1,400 kilometres, connecting Tete province in central Mozambique to Maputo in the south. This infrastructure is intended to support domestic supply and enable future regional power exports.

In July 2025, the Mozambican government authorised state owned utilities Electricidade de Moçambique and Hidroeléctrica de Cahora Bassa to each acquire up to 15 percent of the project’s share capital. The overall cost of the project is currently estimated at between US$6 billion and US$7 billion, positioning Mphanda Nkuwa as one of the largest energy investments in southern Africa.

Author: Bryan Groenendaal

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