Cahora Bassa Hydroelectric Plant Reports Record Profits in 2024

Mozambique’s Cahora Bassa Hydroelectric Plant (HCB) has recently made headlines with its impressive achievement of reporting profits totaling 14.1 billion meticais, equivalent to approximately $219 million, for the year 2024. This remarkable financial performance not only highlights the plant’s operational efficiency but also sets the stage for significant investments in the country’s infrastructure and social programs.

This development was officially announced on Tuesday, following a general meeting that took place on the preceding Monday. In a move that underscores HCB’s commitment to supporting Mozambique’s economy, the company has approved the distribution of 7.4 billion meticais in dividends. This decision will see the Mozambican government receiving over 6.5 billion meticais, an amount that is poised to make a substantial contribution to national revenues.

Tomás Matola, the chairperson of HCB’s board, emphasized the importance of this financial windfall for the nation. He stated, “In particular, the Mozambican state will receive just over 6.5 billion meticais, which, combined with taxes and fees, will reinforce the State Budget, necessary for implementing the country’s social programs.” Can you imagine the tangible impact these funds will have on communities across Mozambique? These contributions are not merely numbers; they represent opportunities for education, health care, and other critical social services that can uplift the lives of countless citizens.

The impressive profits for 2024 signify an 8.5 percent increase compared to the previous year. What accounts for this upward trend? A closer look reveals a dual strategy: increased energy production and adjustments to export tariffs. HCB generated an astounding 15,753.5 GigaWatt-hours of electricity, showcasing the plant’s vital role as Mozambique’s primary electricity producer. Situated in Tete province, HCB operates one of Africa’s largest reservoirs, a feat that places it at the forefront of renewable energy capacity in the region.

In terms of ownership, the Mozambican government holds a significant 90 percent stake in HCB, while Portugal’s Redes Energéticas Nacionais and Mozambique’s Eletricidade de Moçambique possess the remaining shares, accounting for 7.5 percent and 2.5 percent, respectively. This structure not only emphasizes national ownership but also the collaboration between Mozambique and Portugal, illustrating a broader interconnection within the global energy market.

Reflecting on the contributions from HCB between 2022 and 2024, it is notable that the plant has paid over 32.8 billion meticais to the government through taxes and concession fees. This staggering figure reinforces HCB’s status as the leading contributor in public payments within the country. The stability it offers through such financial commitments is vital, especially in a developing nation where budgets can be lean and the demands for public services are high.

As we celebrate these achievements, it is important to consider the broader implications of HCB’s success. Investors and policymakers alike must ask: How can such a model be replicated in other sectors of Mozambique’s economy? Moreover, as we look toward future endeavors, how can we ensure sustainable practices in energy production that do not compromise the environment for future generations? These questions, while challenging, are essential for guiding the nation’s progress.

Anecdotes abound about community members and their dreams for development. Take, for instance, a local school teacher in Tete who shared her hope that enhanced funding could lead to better educational resources. Or the young entrepreneur eager to harness electricity to power her small business, aiming to lift her family out of poverty. These stories exemplify the real-life impacts of HCB’s success and the collective aspiration for a brighter future.

In conclusion, HCB’s record profits offer much more than just an impressive financial milestone. They symbolize a collaborative effort towards igniting economic growth and enhancing the quality of life for many Mozambicans. As we engage with these developments, let us remain hopeful yet vigilant, poised to leverage such successes towards a sustainable and inclusive future.

Edited By Ali Musa
Axadle Times international–Monitoring.