The Energy Transport System (STE) is the backbone project of Mozambique’s national electricity system. GECP II connects Tete and Maputo through extra-high-voltage transmission lines, together with intermediate substations. Today the national transmission network has two isolated parts. Most of the electricity generated at Cahora Bassa is exported to South Africa and then re-imported to supply the southern region, which accounts for more than 70% of national energy consumption. The project is needed to join the national grid, add capacity for independent power producers such as Mphanda Nkuwa, support rural and urban electrification, and enable electricity exports. It also supports EDM in developing distribution projects that increase connectivity and unlock the agricultural potential of rural areas.
Project overview
Investment opportunity
GECP II is a USD 1.4 billion transmission project promoted 100% by EDM and the Government of Mozambique. Concessional financing has been identified from the World Bank, EIB, EU and AfDB. The remaining financing gap is USD 0.6 billion, and the deal ask is directed to the Abu Dhabi Fund for Development. The project is the evacuation route for new generation, including Mphanda Nkuwa, so financiers would support the asset that makes the wider energy pipeline bankable. The milestones run from technical and environmental studies and the financing agreement in 2027, through contractor mobilisation and equipment manufacture in 2028, to tower and conductor installation on the Inchope–Matambo section in 2029. Financiers can provide concessional or development finance to close the gap.
Investment types sought
Project status
Development stage
Structuring & preparation
Current status / progress to date
2027: completion of technical and environmental studies, terms of reference and financing agreement, launch of construction tender, EIA approval and contract award. 2028: detailed engineering and equipment manufacture. 2029: tower and conductor installation (Inchope–Matambo) and substations.
Additional project information
- Lead agency
- Government of Mozambique / EDM
Expected impact
Jobs created / supported
Not quantified in the pipeline. The pipeline notes the project will help create higher-value industrial jobs, and construction (towers, conductors, substations, access roads) will create employment from 2028.
Economic & development benefits
- Unifies the two isolated parts of the national transmission network
- Adds capacity for independent power producers, including Mphanda Nkuwa
- Supports EDM distribution projects and rural and urban electrification
- Unlocks agricultural potential in rural areas and higher-value industrial jobs
- Enables electricity exports
Climate & resilience benefits
- Allows domestic renewable (hydro) generation to supply the south directly
- Reduces dependence on export and re-import of power through South Africa
- Strengthens the resilience of national power supply
Contact
Contact team
For more information about this project, please contact the Commonwealth Investment Platform team.