In a small village outside Mozambique’s capital, the arrival of electricity has sparked a wave of economic activity, a microcosm of a larger national push to bring power to its 33 million citizens. The story of Hermínio Guambe, a 48-year-old barber who has upgraded his business with hair dryers, highlights the transformative power of electrification.
World Bank President Ajay Banga, during a recent visit, underscored this point. “Electricity isn’t just light, it’s a chance,” he stated, emphasizing that these small enterprises are the engines of economic growth.
Mozambique, one of the world’s poorest nations, has set an ambitious goal to achieve universal electricity access by 2030, a challenge mirrored across sub-Saharan Africa, home to 85% of the global population without power. The nation’s progress is notable, with electricity access nearly doubling from 31% in 2018 to 60% in 2024. The state utility, Electricidade de Moçambique (EDM), connected over half a million homes last year alone.
The cornerstone of this strategy is the $6 billion Mphanda Nkuwa hydroelectric plant, a project set to be the largest of its kind in southern Africa in five decades. Located downstream from the Cahora Bassa dam, it is expected to generate 1,500 megawatts, helping to address a regional power deficit of 10,000 megawatts.
The project is being developed by a consortium including TotalEnergies, Électricité de France, and Hidroeléctrica de Cahora Bassa. The World Bank is providing a mix of support, including concessional funding for infrastructure, partial risk guarantees, and political risk insurance, a strategy that moves away from traditional donor reliance toward private-sector-led growth.
While large-scale projects like Mphanda Nkuwa are crucial, the country’s vast and rural landscape necessitates a dual approach. EDM’s chairman, Joaquim Ou-Chim, acknowledges the need for “off-grid solutions, mainly driven by solar” to reach remote communities. About 10% of current access comes from these solutions, with more in the pipeline.
The electrification push, however, is not without its critics. Evaristo Cumbane, a Maputo-based energy consultant, cautions about Mozambique’s growing debt burden, which reached approximately $17 billion in the first quarter of 2025. He stressed that funding from institutions like the World Bank are not donations and come with significant financial obligations.
Despite these challenges, the prospect of new power poles offers hope for many, including Aurélio Arlindo, a 38-year-old in a Maputo suburb, who dreams of opening a cold drinks stall. For many Mozambicans, the humming of a barber’s new hair dryer is a powerful symbol of progress and the promise of a brighter future.
