Mozambique is seeking financing to construct approximately 1,300 kilometres of new electricity transmission lines. According to the country’s official news agency AIM, this undertaking is part of a broader strategy to strengthen the national grid, increase power evacuation capacity, and position the country as a regional energy hub in Southern Africa.

Pedro Nguelume, chairman of the National Energy Transmission Company, stated that the expansion is vital for meeting rising domestic demand and advancing long-term energy objectives. 

Speaking during a sector reform debate, he emphasised the urgent need to mobilise additional financial resources to sustain growth.

Mozambique’s current transmission network spans about 9,000 kilometres, developed with backing from international partners, including the World Bank and the African Development Bank, AIM says.

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The first phase of the expansion project, completed in 2024, necessitated an investment of roughly US$500 million. According to Nguelume, between 25 percent and 30 percent of the financing came from concessional mechanisms, while the majority was secured through international grants – a structure that helped preserve the sector’s financial sustainability.

The second phase aims to be fully financed by 2028. Meanwhile, a third phase will extend transmission lines to the planned Mphanda Nkuwa hydroelectric project – a large dam scheduled to be built on the Zambezi River in Tete Province, downstream of the Cahora Bassa Dam. 

With an expected capacity of around 1,500 megawatts, Mphanda Nkuwa is regarded as one of Mozambique’s most strategic energy projects. The dam is intended to significantly boost electricity production, expand exports to neighbouring countries, and consolidate Mozambique’s role in the Southern African power market.

Currently, approximately 64 percent of the population has access to electricity. Officials view the expansion of transmission infrastructure as critical for accelerating universal access and strengthening energy integration with regional markets, including South Africa, Zimbabwe, Zambia, and Tanzania.