The African Development Bank (AfDB) has expressed interest in financing the Mphanda Nkuwa hydroelectric project in Mozambique to the tune of $162 million in concessional and non-reimbursable terms for Electricidade de Moçambique’s (EDM) participation.
The financial institution also committed to making available another $300 million in guarantees and capital for the public sector on competitive terms, for investment in the hydroelectric power station.
This interest emerged during the participation of the Mphanda Nkuwa Hydroelectric Project Implementation Office (GMNK) in the Africa Investment Forum (AIF), held recently in Marrakesh, Morocco.
The AIF is a platform dedicated to promoting investment opportunities across the African continent. It brings together investors, governments, and companies to promote and facilitate business and investments in various sectors like energy, infrastructure, agriculture and more. It is a crucial initiative to boost economic growth and development in Africa.
Data shared by Carlos Yum, director of GMNK, indicates that Mphanda Nkuwa was one of the investment projects selected by the Forum’s Investment Committee, under the auspices of AfDB. The criteria include, among other aspects, the organizational implementation structure, technical, economic and financial feasibility, social and environmental impact, as well as the Sustainable Development Goals (SDGs).
In this context, the investment project was presented in a session called the “Investment Boardroom,” where selected projects have the opportunity to present the investment proposal in detail to international financial institutions, export credit agencies and insurers, under the auspices of the Investment Forum organized by the African Development Bank.
In Morocco, GMNK also held parallel meetings with the Islamic Development Bank and MIGA of the World Bank Group to discuss financing options. The Mphanda Nkuwa hydroelectric project aims to boost energy production and economic development in Mozambique and the region.