The African Development Bank has announced the approval of US $54M loan slated for the construction of the first wind energy project in Mozambique.
This project marks a major step in Mozambique’s renewable energy journey, contributing to its ambition of becoming a regional energy hub through the Southern African Power Pool (SAPP). The loan package includes $12 million from the Sustainable Energy Fund for Africa (SEFA), adding to funds from the International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), Emerging Africa and Asia Infrastructure Fund (EAAIF), and Private Infrastructure Development Group’s Technical Assistance.
The energy project involves construction of a 120 MW wind plant located 50 km west of Maputo in Namaacha. During the construction phase, the project will create 600 jobs, including targeted opportunities for women (120 positions) and youth (300 positions). Once operational, it will support 20 permanent positions, with a focus on gender and youth inclusion.
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Power purchase agreement
Mozambique’s state utility, EDM, will serve as the sole off-taker under a 25-year power purchase agreement, buying energy generated by the wind farm, which is expected to produce 331.6 GWh annually. This output will help diversify Mozambique’s energy sources, which currently rely heavily on hydropower and natural gas, and will reduce the country’s CO₂ emissions by an estimated 71,816 tons per year.
Kevin Kariuki, AfDB’s Vice President for Power, Energy, Climate, and Green Growth, hailed the project as a “milestone for Mozambique,” emphasizing its role in enhancing energy security and facilitating regional trade. Wale Shonibare, Director of AfDB’s Energy Financial Solutions, highlighted the project as an example of how renewable energy can drive sustainable development and support Mozambique’s economic resilience. Globeleq, one of the project’s developers, echoed this sentiment, with CEO Jonathan Hoffman noting its alignment with Mozambique’s “Energy for All by 2030” program, aiming for universal electricity access within the decade.
Aligned with AfDB’s strategic goals under the Ten-Year Strategy, the New Deal on Energy for Africa, and its “High 5” priority to “Light Up and Power Africa,” the Namaacha Wind Farm underscores Mozambique’s commitment to achieving sustainable energy and economic growth while improving access to electricity across the country.
