The United States of America (USA), through the US International Development Finance Corporation (IFC), has approved a loan of 179 million dollars (11.3 billion meticals) to enable the implementation of a large-scale wind energy project in Mozambique.
According to information released on Wednesday (10) by BNN Bloomberg, the 120 megawatt project will be developed in the district of Namaacha, Maputo province, in the south of the country, and is the responsibility of Globeleq, an independent company dedicated to energy production in Africa.
“Of the total amount, 99 million dollars will be used to exclusively finance the project and the remaining 80 million will be provided in political risk insurance for Globeleq Africa,” explained the website.
The Canadian news organisation also revealed that the project will require a total investment of 268 million dollars, which should be reached this year.
In May, Samir Salé, Globeleq’s Director of Development and Business, announced that construction of the Namaacha wind farm is expected to begin in the second half of this year, emphasising that the project will be developed in partnership with the Mozambican government.
“The power station will significantly increase our energy export capacity, benefiting not only Electricidade de Moçambique (EDM) with more favourable prices, but also meeting growing national energy demand,” he said.
At the time, he emphasised that “this project not only strengthens the distribution network in the provinces of Maputo, Gaza and Inhambane, but also marks the start of the country’s first grid-connected wind farm. We are aligned with the government’s energy transition strategy, focused on maximising renewable resources”.
Globeleq recently announced that in 2023 it achieved positive results, detailing that in the seven countries where it operates, including Mozambique, it produced a total of more than 7,000 GWh of electricity, reaching 8.8 million consumers and creating more than 181,000 new jobs, in an investment valued at more than 3.1 million dollars.
In its most recent sustainability report, the organisation explained that it currently owns and operates 17 power stations in Africa, and that the group is also building an important gas plant for energy production, a project supported by the International Finance Corporation, which will start operating in the coming months in Temane, Inhambane province, in the south of the country.
“In Kenya, construction of Globeleq’s first geothermal project in Menengai is underway after it reached financial close at the end of 2023. Also in the same year, the company acquired another 41 MW solar photovoltaic plant in Mocuba, Mozambique, and the 25 MW Winnergy solar photovoltaic plant in Egypt,” he emphasised.
Globeleq, which is 70 per cent owned by British International Investment and 30 per cent by Norfund, is the main developer, owner and operator of electricity generation in Africa. Since 2002 it has been building a diversified portfolio of independent power stations.
What is the US International Development Finance Corporation (IFC)?
IFC is the US development finance institution that partners with the private sector to finance solutions to the most critical challenges facing the developing world.
Essentially, the organisation invests more in the areas of energy, health, critical infrastructure and technology, as well as providing financing for small businesses and women entrepreneurs to create jobs in emerging markets. DFC’s investments follow high standards and respect the environment, human rights and workers’ rights.
