The Board of Directors of the African Development Bank (AfDB) has approved a $54 million loan for a significant new project, a 120-MW onshore wind farm designed to establish Mozambique as a regional energy hub and a leader in renewable energy. Known as the Namaacha wind farm, this project will be located 50 km west of Maputo, Mozambique’s capital, marking the country’s first utility-scale wind power initiative. The project exemplifies a major step forward in Mozambique’s energy infrastructure, bringing affordable, reliable, and clean energy to both local and regional markets. By generating 331.6 GWh annually, the wind farm will diversify Mozambique’s energy portfolio, enhance electricity access, and significantly improve energy security. Under a 25-year power purchase agreement, Mozambique’s national electricity utility, EDM, will be the sole off-taker from the wind farm, ensuring a steady and reliable demand for the energy produced. The initiative aligns closely with global climate goals, particularly with Mozambique’s commitments under the Paris climate agreement. Through this project, Mozambique will reduce its annual CO₂ emissions by approximately 71,816 tons, contributing to global efforts to combat climate change.
Economic Growth and Job Creation
One of the key objectives of the Namaacha wind farm project is to improve energy trade through the Southern African Power Pool (SAPP), positioning Mozambique as a critical player in the regional energy market. This initiative is not just about generating green energy; it is also about driving economic growth, creating job opportunities, and improving living standards. During the wind farm’s construction phase, which is expected to generate about 600 jobs, a focus will be placed on gender and youth inclusion. Of these positions, 120 will be allocated specifically for women and 300 for youth, promoting an inclusive workforce. Once the project becomes operational, it will create 20 permanent roles, ensuring ongoing employment opportunities and supporting the local economy.
The employment created by the wind farm is anticipated to have a significant multiplier effect on the local economy, fostering ancillary industries and services that support the wind farm’s operations. By integrating renewable energy technologies, Mozambique not only addresses its energy needs but also stimulates broader socio-economic development. Kevin Kariuki, the vice president for power, energy, climate, and green growth at AfDB, emphasized the project’s dual impact in advancing both clean, renewable energy solutions and enhancing overall energy security in the region. His views were supported by Wale Shonibare, another high-ranking official at the Bank, who highlighted the transformational potential of the project in leveraging renewable technologies for sustainable growth.
Comprehensive Financial Backing
The Board of Directors at the African Development Bank (AfDB) has approved a $54 million loan to develop a 120-MW onshore wind farm in Mozambique. Named the Namaacha wind farm, this pioneering project will be situated 50 km west of Maputo, Mozambique’s capital. This initiative marks Mozambique’s first large-scale wind power project and is a significant move towards positioning the country as a leader in renewable energy in the region. Besides providing affordable, reliable, and clean energy to local and regional markets, the wind farm will generate 331.6 GWh annually, diversifying Mozambique’s energy sources and boosting electricity access and energy security. Under a 25-year power purchase agreement, Mozambique’s national electricity utility, EDM, will be the sole buyer, ensuring consistent demand for the generated energy. This project aligns with global climate objectives, particularly Mozambique’s commitments under the Paris climate agreement, by reducing annual CO₂ emissions by roughly 71,816 tons, thereby aiding global climate change efforts.
