US/UK collaboration will help expand Mozambique’s grid and encourage energy access, economic development and the uptake of power generation
A major electricity transmission project being developed by Gridworks in Mozambique has secured US government development funding.
The US$5 million grant from the US International Development Finance Corporation (DFC) will support Gridworks’ on-going development of Phase II and III of the 460km Chimuara-Nacala transmission line connecting central and northern regions of Mozambique. The project will increase the reliability of the grid, boost industrial development and allow the uptake of more power generation in the southern African nation. Gridworks, which is owned by British International Investment, the UK Government’s Development Finance Institution, is developing the project in partnership with Electricidade de Moçambique (“EDM”), Mozambique’s national electricity utility.
This is one of the first times that DFC has provided a development grant specifically for a transmission project in Africa and reflects DFC’s commitment to supporting the technical, legal, and environmental work being undertaken by Gridworks to fast track the project to financial close.
The government of Mozambique has shown continent-wide leadership in its desire to attract private sector financing for the development of its key infrastructure. The grant from DFC supports Gridworks’ efforts to implement what is Mozambique’s first privately financed Independent Transmission Project (ITP).
With growing industrial demand for power and only half of the population having access to electricity, Chimuara-Nacala is a high priority project for the Government of Mozambique which recognises that network expansion, increased grid capacity and resilience are necessary to ensure that increased power generation meets rising customer demand.
Gridworks and EDM began collaborating on the project in 2023. The project infrastructure includes a 400kV transmission line from Alto Molócuè – Namialo (272 km), a 220kV transmission line from Namialo – Nampula (98 km) and a 220kV transmission line from Namialo – 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 construction of Phase I by EDM already ongoing.
Gridworks Interim CEO, Chris Flavin, said
“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 and support the government’s ambition of universal electricity access.
“We’re delighted that DFC has joined the project. DFC is a key partner for Gridworks and we have a shared goal of mobilising private sector capital to support regionally important infrastructure projects.”
DFC Senior Vice President of Investments, Mateo Goldman, added:
“DFC is proud to partner with Gridworks to advance energy security in Mozambique. Energy independence is vital for regional stability and economic growth. This strategic investment strengthens local capacity while also laying the groundwork to mobilize private capital to further develop reliable and secure power infrastructure in regions critical to U.S. national interests.”
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.
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Media contact:
Rhyddid Carter, Head of Communications (rhyddid.carter@gridworkspartners.com)