The African Development Bank (AfDB) has confirmed it will provide guarantees for the Mphanda Nkuwa Hydroelectric Project, a move expected to facilitate the mobilisation of financing for the implementation of the development.
The announcement was made by AfDB representative Rômulo Correia on the sidelines of an industrialisation seminar held as part of the 61st edition of the Mozambique Agro-Commercial and Industrial Fair (FACIM), in the district of Marracuene, according to Jornal Notícias.
Correia said the guarantees are intended to help reduce the risks associated with the project and create better conditions to attract financing for the construction of the infrastructure. The AfDB’s support follows the institution’s earlier expression of interest in participating in the development of Mphanda Nkuwa, including through the provision of risk guarantees and oversight of the energy transmission infrastructure linked to the project.
Despite the confirmation, the specific terms of the guarantees have not yet been finalised. According to the AfDB representative, structuring remains ongoing given the scale and complexity of the undertaking.
The Mphanda Nkuwa Hydroelectric Project is regarded as one of the country’s most significant energy initiatives currently in preparation. It is expected to increase electricity availability in Mozambique and strengthen energy supply to the Southern Africa region.
The AfDB’s provision of guarantees could play an important role in reducing perceived risk among investors and lenders at a stage when the project is seeking to consolidate its financial structure.
With the AfDB’s entry into this support mechanism, Mphanda Nkuwa gains a new instrument to advance the mobilisation of the resources required for its implementation.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/08/energia-3/facim-2026-bad-vai-conceder-garantias-a-mphanda-nkuwa/
