IFC commits development funding to Phase II and III of the Chimuara Nacala transmission line, Mozambique’s first privately financed Independent Transmission Project.
The International Finance Corporation (IFC), a member of the World Bank Group has today signed an agreement with Gridworks to provide development funding to Phase II and III of the 460km Chimuara-Nacala transmission line connecting central and northern regions of Mozambique.
Gridworks is the UK government-backed investor in Africa’s electricity networks and a subsidiary of British International Investment, the UK’s development finance institution.
Under the terms of the agreement, IFC will share a portion of the project development costs, provide substantial expertise to ensure compliance with the IFC Performance Environmental and Social Standards, and leverage its expertise to support the project financing.
The Chimuara-Nacala project will increase the reliability of the grid, boost industrial development and allow the uptake of more renewable power in the southern African nation. Gridworks is developing the project in partnership with Electricidade de Moçambique (EDM), Mozambique’s national electricity utility.
With growing industrial demand for power and about 40% of the population lacking access to electricity, Chimuara-Nacala is a high priority project for the Government of Mozambique which recognises that network expansion and improved grid capacity and resilience are necessary to ensure that increased power generation meets rising customer demand.
The project, which was announced in June 2024, includes a 400kV transmission line from Alto Molócuè to Namialo (272 km), a 220kV transmission line from Namialo to Nampula (98 km) and a 220kV transmission line from Namialo to Nacala-à-Velha (90 km). It also includes two new substations at Namialo and Nacala-à-Velha and the expansion of the Nampula substation. The project is being built in three phases, with the construction of Phase I already completed by EDM.
Welcoming the announcement, Chris Flavin, Gridworks Interim CEO, said:
“The Chimuara-Nacala transmission line is a crucial project connecting the central and northern regions of Mozambique with a high voltage transmission spine. It will create economic opportunities, improve energy access and boost renewable energy generation. We are pleased to partner with the IFC and we look forward to working together, alongside EDM and the Government of Mozambique to deliver the project.”
Sarvesh Suri, IFC Regional Industry Director for Infrastructure and Natural Resources, Africa, added:
“IFC’s partnership with Gridworks will help accelerate the development of critical transmission infrastructure in Mozambique, expanding access to energy and enabling greater integration of renewables. This commitment reflects our determination to support early-stage, impact-driven solutions that can strengthen national grids, unlock economic opportunities and drive inclusive growth across the continent.”
Holger Rothenbusch, Managing Director and Head of Infrastructure at British International Investment, added:
“This support from IFC is a critical milestone for the development of this vital project in Mozambique. Supporting the generation and transmission of affordable energy for the African continent is a core objective for BII and will remain central to our mandate in the years to come.”
An investor in Africa’s electricity transmission & distribution sector, Gridworks is developing a series of ground-breaking projects to bring clean, affordable and reliable power to Africa’s people and its businesses.