AfDB Approves $54M for Mozambique’s First Utility-Scale Wind Farm

Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth, described the Namaacha Wind Farm as a transformative step for Mozambique.

The African Development Bank (AfDB) Board of Directors has approved a $54 million loan for Mozambique’s first utility-scale wind power project, the 120 MW Namaacha wind farm. Located 50 kilometres west of the capital, Maputo, the project marks a significant advancement in the nation’s energy landscape, bolstering Mozambique’s goal of universal electricity access by 2030 and enhancing its role as a key player in regional energy trade.

The funding from AfDB includes $12 million from the Sustainable Energy Fund for Africa (SEFA), with additional financing expected from multiple international partners, such as the International Finance Corporation (IFC), the U.S. International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF), and the Private Infrastructure Development Group’s Technical Assistance arm. The total project cost is estimated at $224.5 million, a sum aimed at creating a modern wind energy infrastructure that will power Mozambique’s socio-economic development and energy diversification.

The national electricity utility, Electricidade de Moçambique (EDM), will serve as the project’s sole off-taker under a 25-year power purchase agreement, ensuring the generated power contributes directly to national energy needs. The wind farm is projected to produce 331.6 GWh annually, enough to power hundreds of thousands of households. With Mozambique’s energy mix currently dominated by hydropower and natural gas, the Namaacha project will enhance energy security, increase access to clean energy, and support Mozambique’s commitment to reducing greenhouse gas emissions, estimated to lower CO₂ emissions by approximately 71,816 tons annually.

In addition to environmental benefits, the project will foster economic growth and employment. During construction, it will create 600 jobs, with specific targets to employ 120 women and 300 youth. Once operational, it will sustain 20 permanent positions, with an emphasis on gender and youth inclusion. The development aligns with the Bank’s broader strategy, including its Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of "Light Up and Power Africa."

Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth, described the Namaacha Wind Farm as a transformative step for Mozambique. “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 Bank’s Energy Financial Solutions, Policy, and Regulations Department, highlighted the technological impact: “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.”

Globeleq, one of the project’s developers, plays a critical role alongside EDM and Source Energia. Jonathan Hoffman, CEO of Globeleq, remarked, “The Namaacha Wind Farm is a significant milestone in Mozambique’s journey toward a diversified and sustainable energy landscape. This project reflects our commitment to supporting Mozambique's clean energy goals and bringing reliable power to the communities we serve.”

The wind farm will also support Mozambique’s regional role in the Southern African Power Pool (SAPP), capitalizing on increased cross-border energy trade. It joins other AfDB initiatives in Mozambique, such as the Songo Matambo transmission line and the Mozambique Energy for All program, further strengthening the country’s renewable energy infrastructure and setting Mozambique on a path toward energy independence.