Mphanda Nkuwa (MNK) is a 1,300 MW hydroelectric power plant on the Zambezi River, downstream of the existing Cahora Bassa scheme (2,075 MW). The project covers the dam and power station, the generating equipment and electrical infrastructure park, and the social infrastructure and access roads needed for resettlement. It is developed alongside the Tete–Maputo transmission backbone (GECP I and II), which will carry its power to the south of the country. MNK would increase Mozambique’s available electricity production capacity by more than 50%, potentially supplying over 3 million homes in Mozambique and the region. It is needed to achieve universal energy access, provide clean and competitive power for industrialisation, and support the national target of 6,001 MW of installed capacity by 2030, while positioning Mozambique as the largest exporter in the Southern African Power Pool (SAPP).
Project overview
Investment opportunity
MNK is a large-scale, long-life renewable generation asset with both a domestic offtaker and a regional export market. The total investment is USD 4.5–5.0 billion, structured at about 30% equity and 70% debt (USD 3.5 billion). The project is seeking a co-investor for a stake of roughly 10–20%, with an indicated equity ticket of USD 0.15–0.3 billion. Bankability is supported by a power purchase agreement with EDM backed by World Bank Partial Risk Guarantees (PRG) and by MIGA political risk insurance. Investment Project Authorisation was granted in 2025, with the Concession Decree and Concession Contract to follow. Financial close and the start of plant construction are targeted for 2028. Investors can take part as equity co-investors, as lenders, or as strategic partners in construction and long-term operation of a flagship SAPP asset.
Investment types sought
Project status
Development stage
Structuring & preparation
Current status / progress to date
Investment Project Authorisation obtained (2025); Concession Decree and Contract to follow. 2027: EDM energy agreement term sheet, World Bank PRG approval, ESIA and Resettlement Plan completion. 2028: energy trading agreement, financing agreements, due diligence, financial close and start of construction.
Additional project information
- Lead agency
- Government of Mozambique / EDM Power Offtaker & Market Operator
Expected impact
Jobs created / supported
Not quantified in the pipeline. Employment will arise from construction of the dam, power station, access roads and resettlement infrastructure (2028–2029 onwards), followed by long-term operation and maintenance roles.
Economic & development benefits
- Increases national electricity production capacity by more than 50%
- Potential supply for over 3 million homes in Mozambique and the region
- Clean, competitive power for industry and green industrialisation
- Positions Mozambique as the largest exporter in the SAPP, earning foreign exchange
- Contributes to universal energy access
Climate & resilience benefits
- 1,300 MW of renewable hydroelectric generation
- Supports Mozambique’s energy transition target for 2050
- Adds low-carbon capacity to the national and regional grid
Contact
Contact team
For more information about this project, please contact the Commonwealth Investment Platform team.