Mozambique’s Council of Ministers has formally approved the Mphanda Nkuwa hydropower concession, paving the way for one of Africa’s largest renewable-energy investments.
The decision, taken during the 34th Ordinary Session on 7 October 2025, authorises Central Hidroeléctrica de Mphanda Nkuwa, S.A. to design, build, finance, and operate the 1,500 MW facility, while delegating the Energy Minister to sign the concession contract on behalf of the state.
The approval establishes a comprehensive legal and institutional framework for the project’s execution, encompassing construction, ownership, operation, and the sale of electricity to national and regional markets. This clarity ensures transparency, predictability, and investor confidence — essential ingredients for implementing a project of this scale.
More than a technical milestone, the Mphanda Nkuwa hydropower concession represents a strategic move toward reshaping Mozambique’s energy future. The concession contract defines the rights and obligations of both the state and the concessionaire, reinforcing governance, accountability, and long-term security for stakeholders. By anchoring the project in clear legal provisions, the government seeks to balance investor participation with national development priorities.
Located along the Zambezi River, Mphanda Nkuwa is central to Mozambique’s ambition of becoming a regional energy hub. Once operational, it will significantly boost domestic electricity supply while enabling exports through the Southern African Power Pool. Beyond economic benefits, the project embodies Mozambique’s commitment to sustainable, low-carbon growth and inclusive local participation.
The Council of Ministers’ decision reflects the government’s broader vision to expand energy infrastructure as a pillar of industrialisation and inclusive development. The Mphanda Nkuwa hydropower concession not only enhances Mozambique’s renewable energy portfolio but also signals growing institutional maturity in managing public-private partnerships.
As the project moves from planning to implementation, it is expected to mobilise billions in investment and create thousands of jobs, while supporting community development in surrounding districts. Ultimately, Mphanda Nkuwa stands as a cornerstone of Mozambique’s strategy to ensure energy security, economic diversification, and environmental sustainability for future generations.
Source: Further Africa
