In order to support its Vital Capex program, the board of directors of the African Development Bank (AfDB) group has approved a loan of 125 million euros to the Mozambican company Hidroeléctrica de Cahora Bassa (HCB).

The loan of 125 million euros granted to Hidroeléctrica de Cahora Bassa consists of a maximum of 100 million euros from the African Development Bank and 25 million euros from the Africa Growing Together fund. This program aims to modernize its electricity generation system. Indeed, Hidroeléctrica de Cahora Bassa is the largest independent electricity producer in Southern Africa, providing hydroelectric power to Mozambique and to the countries of the Southern African Development Community (SADC).

According to a press release from the BAD, the modernization will extend the life of the plant by at least 25 years, improve the reliability of the energy supply, reduce outages, enable the company to meet its contractual obligations to its suppliers, and strengthen regional integration in the energy sector 39; electricity within SADC.