The African Development Bank’s Board of Directors has approved a $54 million loan to finance a 120 MW onshore wind farm in Mozambique, positioning the country as a regional energy hub.
This loan includes $12 million from the Sustainable Energy Fund for Africa (SEFA) and is part of a larger financing package that will involve contributions from the International Finance Corporation (IFC), U.S.
International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF), and the Private Infrastructure Development Group’s Technical Assistance. The total estimated project cost is $224.5 million.
Mozambique’s national electricity utility, EDM, will be the sole off-taker for the wind farm, which is located 50 km west of Maputo, under a 25-year power purchase agreement.
This project marks Mozambique’s first utility-scale wind power initiative, with an expected annual generation of 331.6 GWh.
It will provide affordable, reliable, and clean energy to local consumers and regional markets, diversifying Mozambique’s energy mix and enhancing electricity access.
Additionally, the wind farm will establish the country as a regional energy hub by leveraging increased energy trade through the Southern African Power Pool (SAPP).
Currently, Mozambique’s energy sources are dominated by hydropower and gas, but the Namaacha wind farm project is set to reduce annual CO₂ emissions by approximately 71,816 tons, supporting the country’s commitments under the Paris climate agreement.
The project will also promote economic growth, job creation, and improved living standards, creating 600 jobs during construction—about 120 of which will be targeted for women and 300 for youth.
Once operational, it will generate 20 permanent jobs with a focus on gender and youth inclusion.
Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, stated, “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.”
Wale Shonibare, Director of the Energy Financial Solutions, Policy, and Regulations Department at the African Development Bank, emphasized the technological significance of this 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 meets current demands and is future-proofed to support an evolving economy,” he said.
Globeleq is one of the project developers, and its CEO, Jonathan Hoffman, remarked, “The Namaacha Wind Farm is 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’ program, 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.”
Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the project underscores Mozambique’s commitment to renewable energy development and supports its goal of achieving universal access to electricity by 2030.
This initiative builds on the Bank’s previous energy sector efforts in Mozambique, including the Songo Matambo transmission line and the Mozambique Energy for All program.
