Development finance institution the International Finance Corporation (IFC), which is a member of the World Bank Group, will provide development funding to UK government-backed Africa electricity networks investor Gridworks for Phase 2 and 3 of the 460 km Chimuara-Nacala transmission line connecting the central and northern regions of Mozambique.

The IFC will share a portion of the project development costs, provide substantial expertise to ensure compliance with the IFC Performance Environmental and Social Standards, and leverage its expertise to support the project financing, Gridworks says in a statement.

The Chimuara-Nacala project will increase the reliability of the grid, boost industrial development and allow the uptake of more renewable power in the Southern African nation, it says.

Gridworks is developing the privately financed independent transmission project in partnership with national electricity utility Electricidade de Moçambique (EDM).

With growing industrial demand for power and about 40% of the population lacking access to electricity, Chimuara-Nacala is a high priority project for the government of Mozambique, which recognises that network expansion and improved grid capacity and resilience are necessary to ensure increased power generation meets rising customer demand.

The more than $400-million project, which was announced in June 2024, includes a 400 kV transmission line from Alto Molócuè to Namialo spanning 272 km, a 220 kV transmission line from Namialo to Nampula spanning 98 km and a 220 kV transmission line from Namialo to Nacala-à-Velha spanning 90 km.

The Chimuara-Nacala project also includes two new substations at Namialo and Nacalaà-Velha and the expansion of the Nampula substation.

The project is being built in three phases. Construction of Phase 1 has been completed by EDM.

“The Chimuara-Nacala transmission line is a crucial project connecting the central and northern regions of Mozambique with a high-voltage transmission spine. It will create economic opportunities, improve energy access and boost renewable-energy generation,” says Gridworks interim CEO Chris Flavin.

“We are pleased to partner with the IFC and we look forward to working together, alongside EDM and the government of Mozambique, to deliver the project,” he says.

“The IFC’s partnership with Gridworks will help accelerate the development of critical transmission infrastructure in Mozambique, thereby expanding access to energy and enabling greater integration of renewables,” says IFC Africa regional industry director for infrastructure and natural resources Sarvesh Suri.

“This commitment reflects our determination to support early-stage, impact-driven solutions that can strengthen national grids, unlock economic opportunities and drive inclusive growth across the continent,” he notes.

Gridworks is a subsidiary of UK development finance institution British International Investment (BII).

“This support of the IFC is a milestone for the development of this vital project in Mozambique. Supporting the generation and transmission of affordable energy for the African continent is a core objective for BII and will remain central to our mandate in the years to come,” says BII MD and head of infrastructure Holger Rothenbusch.