africa Banking development Energy Mozambique

AfDB warns Mozambique on inclusive development challenge

African Development Bank Vice President Mateus Magala told Lusa that Mozambique faces the challenge of putting natural resource gains at the service of inclusive and sustainable development.

“The big challenge for the next decade is how to put these huge natural resources at the service of the accelerated, inclusive and sustainable growth of Mozambique’s economy,” head of AfDB’s Corporate Services and Human Resources, Mateus Magala, said.

Magala is in Mozambique to witness the signing of financing agreements for the Temane – Maputo power transmission line on Wednesday.

The AfDB vice president described the current phase in Mozambique as “historic”, marked as it is by announcements of major investments in natural resources and electricity.

“Today, it is a certainty that Mozambique will, in the coming years, be among the largest gas producing countries in the world, opening the doors to options for accelerating the industrialisation of the country and creating quality jobs, as well as universalising access to energy by 2030,” the Mozambican economist said.

Regarding the Temane-Maputo line, the AfDB vice president was confident that it will contribute to the country’s goal of universal electrification by 2030 and make Mozambique a regional energy hub.

The project, he said, was an important step in the country’s desire to build a power transmission “backbone” between northern and central Mozambique.

The Temane-Maputo line will carry gas-generated energy 563 kilometres from Temane in Inhambane province to the Mozambican capital.

Power will be supplied by a 400 megawatt power plant, and the infrastructure includes substations in Inhambane, Gaza and Maputo provinces. The venture’s financing agreements are estimated to be worth about US$530 million (€477 million).

Source: Lusa via Club of Mozambique

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