EAIF: $38.25m

$38.25m of debt to develop, construct and operate a 450MW gas-fired power plant in Mozambique. In the first instance, power will be sold into the Southern African Power Pool (SAPP) and it is expected that after 2030, this will also be utilised within Mozambique.

Direct impact on people

SDG assessment
7.1 – Access to affordable and reliable energy.

Expected impact
At least 500k consumers are initially expected to benefit through the South African Power Pool (SAPP). The number of beneficiaries could increase depending on changes in domestic consumption within Mozambique and SAPP country offtake over time.

Wider economy
SDG assessment
8.5 – Achieve full and productive employment

Expected impact
A large number of businesses are expected to benefit which will in turn create indirect jobs in the economy. The largest impact will be felt for businesses that are highly dependent on electricity and those that suffer from reliability issues.

Market transformation
Challenge: Expensive power in parts of Southern Africa.

Channel: Addition of high volume and low-cost power to the SAPP trading system.

Outcome: Reduction in electricity trading prices for utilities and consumers

Climate risk
Transition: Paris aligned – Passed PIDG Paris Alignment Gas Decision Tree.

  • High development need given only 30% of the population have access to electricity.
  • Project and associated transmission line will support greater integration of renewables.
  • Flexible tolling agreement that allows the plant to transition into a peaker as more renewables come online.
  • Most efficient CCGT technology chosen.
  • The PPA ends before 2050.

Physical: Risks considered and where possible mitigated.

Applying for project support

If you are looking for debt finance for an infrastructure project in sub-Saharan Africa please talk to us.

EAIF mainly supports private sector infrastructure projects to create new or expand existing facilities. We welcome enquiries from companies in Africa and worldwide that want to grow their businesses in sub-Saharan Africa and share our commitment to the continent and its peoples. Enquiries are also welcome from  financial advisers and specialist consultants.