The African Development Bank is granting a loan of 125 million euros to a hydroelectric power producer to modernize its production system. The envelope consists of a maximum amount of 100 million euros from the African Development Bank and 25 million euros from the “Africa Growing Together” fund.

The Mozambican company Hidroeléctrica de Cahora Bassa (HCB) has received 125 million euros to support its Vital Capex program, which aims to modernize its electricity generation system. The largest independent power producer in southern Africa, HCB provides hydroelectric power to Mozambique and the countries of the Southern African Development Community (SADC).

Indeed, modernization will improve the reliability of energy supply, reduce outages, extend the life of the plant by at least 25 years, strengthen the regional integration of the electricity sector within SADC, and enable the company to meet its contractual obligations towards its suppliers. It will also ensure the sustainability of energy security in the Community, in particular in South Africa, Mozambique and Zimbabwe.

For Wale Shonibare, director of the Financial Solutions, Policy and Energy Regulation Department at the Bank, “the Bank's support to Hidroeléctrica de Cahora Bassa is perfectly aligned with its vision of integrating African electricity markets to promote the supply of a & Fast; affordable and reliable electricity to consumers in the region.