Mozambique Takes Major Step Towards Clean Energy with $54 Million Wind Farm Loan Approval
The African Development Bank (AfDB) has approved a $54 million loan to finance Mozambique’s first large-scale wind energy project. This initiative marks a pivotal moment in Mozambique’s energy landscape as the 120 MW Namaacha wind farm will help position the country as a key energy hub within Southern Africa, significantly diversifying its energy mix.
The Bank’s loan, which includes $12 million from the Sustainable Energy Fund for Africa (SEFA), will be complemented by additional funding from 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’s Technical Assistance. With an overall project budget of $224.5 million, the wind farm will be developed 50 km west of Maputo, the nation’s capital.
Mozambique’s national electricity utility, Electricidade de Moçambique (EDM), will be the sole purchaser under a 25-year power purchase agreement. The wind farm is expected to generate 331.6 GWh annually, delivering affordable and reliable clean energy locally while expanding regional electricity trade through the Southern African Power Pool (SAPP). This addition aligns with Mozambique’s broader renewable energy strategy, targeting reduced reliance on hydropower and natural gas.
By replacing fossil fuels with wind energy, the Namaacha project aims to cut CO₂ emissions by approximately 71,816 tons annually, strengthening Mozambique’s climate commitments under the Paris Agreement. The construction phase will also support economic growth by creating around 600 jobs, including targeted roles for women (120 positions) and youth (300 positions). The wind farm’s operation phase will sustain 20 permanent positions, with a focus on gender and youth inclusion.
Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth, emphasized the project’s importance, stating, “This wind project represents a milestone for Mozambique and underscores the Bank’s strong commitment to advancing clean, renewable energy solutions in the region. It will not only enhance energy security but also facilitate regional electricity trade, benefiting Mozambique’s socio-economic development.”
The Director of AfDB’s Energy Financial Solutions Department, Wale Shonibare, highlighted the project’s technological impact, noting that the wind farm demonstrates the transformative potential of renewable energy for sustainable growth and economic resilience.
Globeleq, one of the project developers, also acknowledged the significance of the project. CEO Jonathan Hoffman stated, “The Namaacha Wind Farm is a significant milestone in Mozambique’s journey toward a diversified and sustainable energy landscape. We are proud to partner with EDM and Source Energia in contributing to the government’s ambitious ‘Energy for All by 2030’ program, which is rapidly transforming into a reality for countless Mozambicans.”
The project aligns with AfDB’s New Deal on Energy for Africa and its “Light Up and Power Africa” initiative, which aims to ensure universal access to electricity across the continent by 2030. The wind farm complements Mozambique’s other energy initiatives, including the Songo Matambo transmission line and the Mozambique Energy for All program, both pivotal to achieving the nation’s renewable energy targets.
