"HCB: The National Pride"

“Mozambicans, Cahora Bassa is ours!” These were the words spoken by then President of the Republic, Armando Guebuza, in 2006, in the city of Maputo, as the Cahora Bassa Hydroelectric Plant (HCB)—one of the largest hydroelectric projects in Africa—came under Mozambican control. Let’s go back a bit.

Nearly 20 years after this historic handover, much has changed. HCB, which celebrates its 50th anniversary on June 23, has gone through several transformations, significantly impacting the lives of Mozambicans and contributing to the country’s development.

Many goals have been achieved, many obstacles overcome, and many dreams realized. It’s fair to speak of a “before” and “after” following this historic reversal. Let’s continue.

Under the management of the Mozambican state, which now holds 85% of its capital, HCB has become a true anchor for state revenues. It stands out as one of Mozambique's largest companies in terms of business volume and asset size. The numbers support this claim.

“From 2007 to the end of 2025, HCB will have contributed about 1.9 billion US dollars to the state’s coffers, including dividends, taxes, and concession fees,” said Tomás Matola, Chairman of the HCB Board of Directors, in Maputo, during an event launching the company’s 50th-anniversary celebrations.

Matola further noted that the biggest contribution occurred in the past three years, reaching about 850 million US dollars—roughly 45% of the total contribution to the state.

Additionally, “looking at its evolution,” the numbers show a stronger HCB that “will continue to increasingly contribute to public finances, with around 300 million US dollars expected to be delivered to the state this year alone.”

In fact, because of this, the company was awarded by the Tax Authority as the largest taxpayer in 2024, reinforcing its strategic role in national economic development.

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Inclusion of Mozambicans

The impact of the Cahora Bassa Hydroelectric Plant has been evident in the lives of Mozambicans over the nearly two decades since the reversal. From the economy to education, health to sports, arts to infrastructure—the changes over the past 20 years have been profound.

Today, the hydroelectric plant is more inclusive, more “patriotic,” and above all, more Mozambican. Proof of this is that in 2019, the Mozambican state decided to open up its capital, offering 7.5% of its shares to the public. Through a public share offering, 4% was made available, with the remaining 3.5% still to be issued.

“From 2007 to the end of 2025, HCB will have contributed about 1.9 billion US dollars to the state’s coffers.”

Regardless of political affiliation, race, or ethnicity, “many Mozambicans have had the opportunity to become shareholders of the hydroelectric plant and, since then, have benefited from this investment,” said Tomás Matola.

HCB has also shown its impact in people’s lives through the electrification of administrative posts across the country.

The plant is one of the largest funders of the electrification process, supporting the goal of universal energy access by 2030 and contributing to the economic and social development of communities.

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African Relevance

Installed 50 years ago in a narrow gorge of the Zambezi River, the Cahora Bassa reservoir is the fourth largest in Africa, measuring about 270 kilometers in length, 30 kilometers in width, and covering a total area of 2,700 square kilometers.

Currently, it operates with a production capacity of 2,075 megawatts. However, with increasing national and regional demand, the main challenge has been increasing investment in expansion projects, while also diversifying energy sources such as wind and thermal energy from locally produced natural gas.

Currently underway to meet growing energy demand are projects like the Cahora Bassa North Power Plant, which will generate about 1,245 megawatts, and a 400-megawatt solar power generation project in partnership with the International Finance Corporation (IFC).

Mozambicans had the opportunity to become shareholders in the hydroelectric plant.

But in the medium to long term, the goal is quite ambitious. “In our 2025–2034 strategic plan, the aim is to reach 4,000 megawatts of production by 2034—nearly double the current output—to make HCB one of Africa’s largest energy producers and turn Mozambique into an energy production hub,” said the HCB chairman.

Furthermore, the Africa Energy Outlook 2024 report indicates that Mozambique could be responsible for 20% of Africa’s energy production by 2040, with a projected capacity of up to 187 GW—further confirming HCB’s undeniable importance in the global energy landscape.

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