However, Mozambique faces challenges including high public debt, which reached approximately $17 billion in early 2025, raising concerns about the high costs of large infrastructure projects like Mphanda Nkuwa and the need for balanced investment.

Despite a complex history of civil war, insurgency, and political instability, recent energy projects symbolize potential growth and improved livelihoods, exemplified by individuals like Hermínio Guambe benefiting from increased electrification.

Nevertheless, increased access to electricity is viewed as a crucial step toward economic development and better living standards for Mozambique’s largely rural population, despite ongoing economic and political hurdles.

Mozambique is making significant strides in expanding its electricity access, nearly doubling it from 31% in 2018 to 60% in 2024, with plans to connect all 33 million citizens, especially in rural areas, by 2030 through renewable energy sources like hydro, solar, and wind.

Central to this effort is the $6 billion Mphanda Nkuwa hydroelectric project, supported by the World Bank, which aims to generate 1,500 megawatts of electricity by 2031, addressing regional power deficits and boosting exports to neighboring countries.

The development of Mphanda Nkuwa involves private firms such as TotalEnergies and Électricité de France, with the World Bank providing guarantees and environmental funding, though not direct financing, to support the project.

Once operational, the project will be the largest hydroelectric initiative in southern Africa in 50 years, helping to fill a regional power deficit of 10,000 megawatts and supporting economic growth.

This hydro project reflects a broader shift in African energy development, with investments in hydropower like Ethiopia’s Grand Renaissance Dam and Congo’s Inga 3, although most hydropower capacity remains untapped across the continent.

Given Mozambique’s vast geography and challenges in building large dams, the country is also focusing on off-grid renewable solutions such as solar power, which currently provides about 10% of electricity, especially in remote rural areas.