Mozambique's Cahora Bassa Hydroelectric Plant Reports Robust Profit Surge in 2024

Maputo, Mozambique — The Cahora Bassa Hydroelectric plant, a cornerstone of Mozambique's energy infrastructure, has announced a significant profit increase for the first nine months of 2024. According to financial data accessed by Lusa news agency, profits soared by 13.4%, reaching 12.919 billion meticais (approximately €194.9 million). This marks a notable uptick from the 11.389 billion meticais (€171.8 million) earned in the corresponding period of the previous year.

Operational since 1979, the Cahora Bassa plant has been instrumental in driving Mozambique's economic growth through its energy exports, particularly to South Africa. The plant's management has forecasted that profits for the entire year of 2024 will approach 13.039 billion meticais (€196.7 million), reflecting a strategic and operational success amidst global economic fluctuations.

The financial statement submitted to the Mozambique Stock Exchange highlights not only the profit growth but also underscores the company's financial stability. The balance sheet, along with key liquidity and solvency indicators, suggests a strong position for short, medium, and long-term financial health. Equity has grown by 8.2% to 97.793 billion meticais (€1.475 billion), a figure buoyed by the accumulation of retained earnings. However, a 2.3% increase in total liabilities to 3.312 billion meticais (€49.9 million) was noted, primarily due to outstanding dividends to Redes Energéticas Nacionais (REN), the Portuguese stakeholder.

Ownership of the Cahora Bassa Hydroelectric plant is predominantly with the Mozambican state, holding 90% of the shares after the transfer from Portugal in 2007. Portugal's Redes Energéticas Nacionais holds a 7.5% stake, with Electricidade de Moçambique owning the remaining 2.5%. This ownership structure underscores the strategic national interest in the plant's operations and profitability.

The reservoir itself is one of Africa's largest, stretching 270 kilometers in length and 30 kilometers in width, covering an area of 2,700 square kilometers with an average depth of 26 meters. It employs nearly 800 workers, contributing significantly to local employment and development.

This growth in profits comes at a time when Africa's energy sector is under scrutiny for sustainable development and environmental impact. The Cahora Bassa plant, while a significant contributor to the region's energy supply, also faces challenges related to environmental stewardship and the global push towards renewable energy sources.

The increase in profits and operational efficiency of Cahora Bassa is a positive signal for Mozambique's economy, which heavily relies on natural resources for growth. However, it also brings to light the ongoing dialogue about energy policy, international partnerships, and the balance between economic benefits and environmental responsibilities.

As Mozambique continues to leverage its natural resources for economic development, the performance of the Cahora Bassa Hydroelectric plant will remain a key indicator of the country's ability to navigate the complex landscape of global energy markets while addressing local and international concerns regarding sustainability and equity in resource utilization.