The Board of Directors of the African Development Bank has approved a loan of $54 million for a 120-MW onshore wind farm that will help position Mozambique as a regional energy hub.
Mozambique’s national electricity utility, EDM, will be the sole off-taker from the wind farm, located 50km west of Maputo, under a 25-year power purchase agreement.
The wind farm will be Mozambique’s first utility-scale wind power project. It is expected to generate 331.6 GWh annually, supplying affordable, reliable, and clean energy to both local consumers and regional markets, diversifying Mozambique's energy mix and improving access to electricity. It will also position the country as a regional energy hub, capitalising on increased energy trade through the Southern African Power Pool (SAPP).
With Mozambique’s energy sources currently dominated by hydropower and gas, the Namaacha wind farm project will help reduce annual CO₂ emissions by approximately 71 816 tons, contributing to the country’s commitments under the Paris climate agreement.
The project will support economic growth, job creation, and improved living standards. During construction it will create 600 jobs, targeting about 120 for women, and 300 for youth. Once operational, 20 permanent jobs will be created, with a focus on gender and youth inclusion.
Commenting on the project, Kevin Kariuki, vice president for power, energy, climate, and green growth at the African Development Bank, said: “This wind project represents a milestone for Mozambique and underscores the Bank’s strong commitment to advancing clean, renewable energy solutions in the region. It will not only enhance energy security but also facilitate regional electricity trade, benefiting Mozambique’s socio-economic development.”
The AfDB’s Wale Shonibare stressed the technological impact of this milestone project. “As the first large-scale wind energy initiative in Mozambique, this project showcases the transformative potential of renewable technologies to drive sustainable growth. By leveraging Mozambique's natural resources, we are creating pathways toward a diversified and resilient energy sector that not only meets current demands but is future-proofed to support an evolving economy,” he said.
Globeleq is one of the project developers. Its CEO Jonathan Hoffman said the Namaacha project was a significant milestone in Mozambique’s journey toward a diversified and sustainable energy landscape. “We are proud to partner with EDM and Source Energia in contributing to the government's ambitious 'Energy for All by 2030' programme, which is rapidly transforming into a reality for countless Mozambicans. This project reflects our commitment to supporting Mozambique's clean energy goals and bringing reliable power to the communities we serve.”
It complements the Bank’s earlier energy sector initiatives in Mozambique, including the Songo Matambo transmission line and the Mozambique Energy for All programme.
The Bank’s loan, which includes $12m from the Sustainable Energy Fund for Africa, is in addition to financing expected from International Finance Corporation, US International Development Finance Corporation, the Emerging Africa and Asia Infrastructure Fund, and the Private Infrastructure Development Group’s Technical Assistance. The total project cost is estimated at $224.5m.
