Monday, December 23, 2024

Incredible £3.8bn mega-project set to transform one of world’s poorest countries

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Africa is grappling with a significant infrastructure gap, and according to the African Development Bank, the continent must allocate between £107bn and £140bn each year to close this deficit.

However, it faces a substantial financing shortfall of between £56bn and £89bn. 

This deficit is slowing both economic and social progress, especially as many regions continue to experience persistent energy shortages.

In response, many African nations are ramping up efforts to raise capital and attract investments by launching ambitious projects in energy, transport, and industry.

While some of these ventures are expected to yield results by 2024, others may encounter delays or uncertainty.

In Southern Africa, Mozambique is pressing ahead with its 1,500-megawatt (MW) dam on the Zambezi River, located 60km downstream of the existing Cahora Bassa dam – which would completely transform one of the world’s poorest countries.

The £3.8bn project, first initiated in 1998, received a major boost last year following a joint development agreement between EDF (40%), TotalEnergies (30%), and Sumitomo Corporation (30%).

Known as Mphanda Nkuwa, this hydroelectric project will become one of Africa’s largest sources of hydropower,.

There are plans for the first turbine to be operational by 2031.

“This is the first concrete step for Mozambique to capitalise on the immense hydropower potential of the Zambezi River and the country’s other energy resources,” Mozambique Energy Minister Carlos Zacarias said in a statement.

The new dam will provide low-cost electricity to the southern African country and help position it as a regional exporter of clean, renewable energy, he added. 

Once the dam is completed, it is expected that most of the generated power will be sold to South Africa. 

This is because of the lack of transmission infrastructure in Mozambique. 

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