The Cahora Bassa Hydroelectric Plant (HCB), located in central Mozambique and one of Africa’s largest dams, recorded profits of €95.5 million in 2025 despite facing “one of the most severe droughts” in the region, Lusa reported on Sunday, May 3.
According to HCB information, the figures are included in the company’s accounts, approved on April 30 at the general shareholders’ meeting. The dam’s electricity production in 2025 stood at 10,921 GWh, a sharp decline (-30%) compared to 2024, but still ensuring “the energy security of the country and the region, even in a hydrological crisis environment.”
“This context is marked by one of the most severe droughts of recent decades in the Zambezi basin, which affected reservoir levels and, consequently, the energy production plan,” the company explained.
Even under these conditions, HCB “ensured the fulfillment of its commercial commitments, both in the domestic market and in the Southern African region,” maintaining electricity supply to Electricidade de Moçambique (EDM), the Electricity Supply Commission of South Africa (Eskom), the Zimbabwe Electricity Supply Authority (ZESA), and the Southern African Power Pool (SAPP) markets.
In this way, “energy security for the country and the region was guaranteed in a context of hydrological constraints.”
HCB is a privately governed joint-stock company, 85% owned by the state-owned Zambezi Electric Company, and 7.5% by Portugal’s Redes Energéticas Nacionais (REN). The company holds 3.5% of its own shares, while the remaining 4% is owned by Mozambican citizens, companies, and institutions.
The Cahora Bassa reservoir is the fourth largest in Africa, stretching up to 270 kilometers in length and 30 kilometers in width, covering 2,700 square kilometers with an average depth of 26 meters.
The company employs nearly 800 workers and is one of the largest electricity producers in southern Africa, supplying neighboring countries.
Previously, in 2024, HCB reported profits of 14.1 billion meticais (€195.7 million), representing growth of nearly 8.5% compared to 2023 and marking “the highest in the company’s history,” driven by total production of 15,753.52 GWh and an adjustment in electricity export tariffs.
In 2025, the company generated revenues of €293.2 million and a net result of €95.5 million, “reflecting prudent management of water and financial resources.”
“In the same year, 2025, the company contributed around €255.7 million to the Mozambican state through taxes, fees, and dividends, reinforcing its role as a strategic asset for the national economy and the country’s energy stability,” said HCB board chairman Tomás Matola.
Electricity exports by HCB, he added, “continued to play an important role in generating foreign currency, contributing to the strength of the country’s balance of payments.”
Source: Diário Económico
