The African Development Bank’s Board of Directors has approved a $54 million loan to support a 120 MW onshore wind farm in Mozambique, aiming to establish the country as a key energy hub in the region.
The financing package, which includes $12 million from the Sustainable Energy Fund for Africa (SEFA), complements additional funding expected from partners like the International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), Emerging Africa and Asia Infrastructure Fund (EAAIF), and the Private Infrastructure Development Group. The project’s total cost is estimated at $224.5 million.
Mozambique’s national electricity company, EDM, will purchase all power generated by the wind farm, located 50 km west of Maputo, through a 25-year power purchase agreement. As Mozambique’s first large-scale wind project, the facility is expected to produce 331.6 GWh annually, providing affordable and clean energy to both local and regional markets. This development will diversify Mozambique’s energy portfolio and strengthen its role in the Southern African Power Pool (SAPP).
Currently reliant on hydropower and gas, Mozambique will reduce its CO₂ emissions by approximately 71,816 tons annually with the wind farm, advancing its commitments under the Paris climate agreement. The project will also support economic growth, generating 600 construction jobs—including targeted opportunities for 120 women and 300 youth—and 20 permanent positions once operational.
Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, described the wind project as a “milestone for Mozambique” that reflects the Bank’s commitment to advancing renewable energy in the region, enhancing energy security, and supporting Mozambique’s socio-economic progress through increased regional electricity trade.
Wale Shonibare, Director of Energy Financial Solutions, emphasized the project’s role in fostering a resilient, diverse energy sector that is prepared for future demands. Globeleq CEO Jonathan Hoffman highlighted the Namaacha Wind Farm’s alignment with Mozambique’s “Energy for All by 2030” goal, reflecting a commitment to cleaner energy and reliable power for local communities.
Aligned with the African Development Bank’s Ten-Year Strategy and the High 5 initiative “Light Up and Power Africa,” the project supports Mozambique’s renewable energy goals and complements other initiatives like the Songo Matambo transmission line and the Mozambique Energy for All program.
