Mozambique Seeks to End 50-Year South Africa Hydropower Pact

  • Contract for electricity from Cahora Bassa ends in 2030
  • Mozambique to use renewable power for new industries
The Cahora Bassa dam.Source: Patrick Durand/Sygma/Getty Images

Mozambique plans to end half a century of hydropower supply to South Africa’s state-owned electricity utility, raising risks for the continent’s most industrialized economy and threatening the viability of Africa’s second-biggest aluminum smelter.

In the country’s yet-to-be published energy transition strategy, a copy of which Bloomberg has seen, Mozambique details the plan to secure the 1,150 megawatts of power it sells to South Africa from its Cahora Bassa plant for its own use.