In a bold move toward a low-carbon future, the African Development Fund, the concessional financing arm of the African Development Bank (AfDB), has approved a $43.6 million (2.79 billion meticais) financing package to construct a 43-kilometre transmission line in southern Mozambique. 

The AfDB released a statement on Wednesday stating that the project is a linchpin for evacuating up to 332 gigawatt-hours of clean energy annually from the 120 MW Namaacha wind power plant currently under development.

The new infrastructure promises to be a game-changer, lighting up thousands of homes and businesses across Mozambique and bolstering cross-border electricity trade in the Southern African region through the Southern African Power Pool (SAPP).

“This project marks a major step forward in Mozambique’s transition to a low-carbon energy future,” said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth. “It will provide affordable electricity, support local industry, and improve livelihoods.”

The financing includes $33.2 million from the African Development Fund and an additional $10.4 million from the Climate Action Window, a mechanism designed to help low-income African countries build climate-resilient infrastructure in line with the Paris Agreement. The Mozambican government is also contributing to the investment.

Electricidade de Moçambique (EDM) will implement the project in collaboration with Central Eléctrica da Namaacha (CEN), a private joint venture between Globeleq Africa Limited and Source Energia. The project includes the installation of two 66 kV transmission lines, grid upgrades, and equipment purchases aimed at ensuring reliable energy delivery, especially to rural and underserved areas.

Beyond powering communities, the initiative is expected to cut over 71,000 tons of carbon dioxide emissions each year, underlining Mozambique’s growing role as a leader in renewable energy and climate action.

According to Wale Shonibare, Director of AfDB’s Energy Financial Solutions, Policy and Regulation Department, “this investment strengthens the backbone of Mozambique’s energy system while accelerating access to clean energy for those who need it most.”

The project also aligns with the AfDB’s “Light Up and Power Africa” strategy and supports the Mission 300 initiative launched in 2024, which aims to connect 300 million Africans to electricity by 2030. With more than 600 million people across the continent still living without power, Mozambique’s latest move offers a bright example of what’s possible with the right partnerships and vision.