Mozambique nears deal to revive Total's $20 billion LNG plan
Mozambican President Daniel Chapo said he expects to soon conclude talks with TotalEnergies over the restart of a $20 billion (R354bn) natural-gas project that halted four years ago because of an Islamic State-linked insurgency.
Chapo earlier this month met with Total CEO Patrick Pouyanne to discuss resuming the project that has the potential to transform the economy of one of the world's poorest countries, he said in a July 19 interview. Mozambique's $900 million in bonds due 2031 rallied as much as 1.4% to the highest level since October, reaching 86.265 cents on the dollar by 12.28 pm in Maputo, the capital.
'I was with Mr. Pouyanne two weeks ago and things are going well,' Chapo said. 'In August, we will close our talks' about when to restart the project, he said.
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Daily Maverick
7 hours ago
- Daily Maverick
Mozambique's Cahora Bassa Dam expansion plan offers Eskom a fresh clean energy option
The Mozambican government-owned hydroelectric power company is looking at Eskom as a potential customer for the additional 1,245MW generation capacity that it plans to add to its existing plant at the Cahora Bassa Dam. Eskom is already the biggest client of the Hidroeléctrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa Dam plant, with about 60% of the power generated at the dam travelling more than 1,400km on two parallel power lines between Cahora Bassa in Songo, northern Mozambique and the Apollo substation near Pretoria. Cahora Bassa has a 2,075MW generation capacity, and the Mozambican government is in discussions with the World Bank to raise money for the expansion of the dam's northern bank and the construction of a new hydropower plant at the Mphanda Nkuwa Dam. The latter dam is downstream from Cahora Bassa, also along the same Zambezi River, and is expected to generate 1,500MW of clean energy. The expansion of the Cahora Bassa Dam scheme has received the backing of the World Bank and will increase generation capacity through the installation of three turning turbines – each generating 415MW. The projects are estimated to cost more than $6-billion. With Eskom under pressure to keep the grid stable while trying to meet obligations to use cleaner energy sources, the power utility's spokesperson Daphne Mokwena told Daily Maverick that HCB's plans were in line with Eskom's mandate. 'One of Eskom's mandates is to ensure a reliable, sustainable and clean energy grid for the country. Eskom will review all HCB plans for future growth and give feedback once all the relevant details have been presented,' she said. Mozambique has its own challenges as it has to meet its domestic electricity demand and has set a target of 2030 to meet this need. According to the World Bank 2023 figures, only 36% of the Mozambican population had access to electricity, compared with 87.7% in South Africa. In February 2024, Bloomberg reported – based on an unpublished energy transition strategy – that the Mozambican government intended to end the partnership with Eskom when the contract expired in December 2030. Eskom said talks on the matter were yet to be concluded. Said Mokwena: 'As the discussions are ongoing, there has been no conclusion on this matter. Eskom is therefore not able to comment on this question at this stage'. However, Mokwena stressed that while Eskom continues to buy power from HCB, the utility 'will continue to rely on its own generation fleet'. 'Notably, the returned 800MW from Medupi Unit 4, the additional new 800MW capacity from Kusile Unit 6, and the planned return of 930MW from Koeberg Unit 1 by August 2025 will significantly boost available capacity,' she said. The 50-year-old Cahora Bassa Dam scheme is a Mozambican government flagship and was showcased to World Bank President Ajay Banga, who visited Mozambique last week. Banga was the guest of Mozambican President Daniel Chapo, who is driving the development of Mozambique's untapped energy sources. The 48-year-old Chapo (the governing party, Frelimo's, candidate) was elected president following the disputed October 2024 elections. The development of the war-ravaged country is at the centre of his plans. Ambitious renewable energy plans Chapo said the main objective of the World Bank's visit was to identify areas of possible investment in the country's energy plans. 'Mozambique has a geographic location that allows for wind farms, so we are currently working with the World Bank Group, through the IFC (International Finance Corporation) which is part of the World Bank Group. 'We can have a public-private partnership, who can come and invest in this entire energy matrix we're talking about – producing electricity through hydroelectric plants, solar plants, gas plants, and also wind farms,' said Chapo. Speaking after a tour of Cahora Bassa, Banga said Mozambique had the potential of becoming the 'energy powerhouse' of southern Africa. 'Frankly, in this part of Africa, nobody has the capacity or capability to do what can be done with the assets of this country. 'We are discussing with the government of Mozambique the idea of investing in another 1,500MW downstream from (Cahora Bassa). 'And then in the meantime, we're also doing some investing in solar capacity, 400MW. And then (Chapo) has some master plans, which I think are even more interesting in terms of adding more capacity (at Cahora Bassa) and renovating this plant and then adding further downstream,' said Banga. Cahora Bassa is a major contributor to the Mozambican economy. It generated $547-million in revenue in 2024 and contributed $302-million to the southern African country's fiscus in the same year. HCB CEO Tomás Matola said that while they continued to make a major contribution to the Mozambican economy, the age of the plant was a threat to its revenue plans. He told the World Bank's Banga that they needed to refurbish Cahora Bassa's generators to future-proof the plant. Said Matola: 'From the supply side, our big challenge is because of the age of our equipment. It is 50 years old, so all our equipment is obsolete, so now we need to do a deep rehabilitation of our power plant and substations.' Southern Africa presently has a shortage of 10,000MW, while Mozambique plans to increase its power generation for the benefit of the domestic and the regional market. 'In Mozambique, we do have a challenge of electrification of all the country… So we have increasing demand from the domestic market, but also the regional market,' said Matola. 'As we need to diversify our power matrix, we have a project for producing 400MW of photovoltaic power. We believe that by 2027, we can start building this project,' said Matola, adding that HCB's vision was to generate 4,000MW of clean energy by 2034. The plans for the 400MW solar power plant include the construction of two solar farms with 200MW generation capacity each. Climate change threat to cleaner energy projects While there is a global drive towards renewable energy and less reliance on fossil fuel energy sources, such as coal, cleaner energy sources are not without challenges. For instance, Cahora Bassa's generation capacity has been adversely affected by the drought that has gripped countries along the Zambezi River. The dam's levels are currently at 25%, meaning that water management techniques have to be applied to maintain the flow through the five generators – thus reducing power generation. According to engineers at HCB, that is the lowest level the dam has reached in its 50-year history. That means Eskom has been getting less power from the plant. This was confirmed by Eskom spokesperson Daphne Mokwena, who said that the power utility had received 45% less electricity from Cahora Bassa than the previous year. 'Cyclically, southern Africa is affected by droughts, and Eskom's supply from HCB has been affected. During the droughts, Eskom relies on its own generation fleet. 'Eskom is receiving less power from HCB as compared to the previous year, due to the drought currently affecting the SADC region. The average loss of power is 45% when compared to last year,' said Mokwena. Cahora Bassa Dam is built on the Zambezi River, which flows through six countries – namely Zambia, Angola, Namibia, Botswana, Zimbabwe and then joins the Indian Ocean in Beira, northern Mozambique. The drought in the SADC region has seen levels at Kariba Dam – between Zimbabwe and Zambia – reach an alarming level of about 11% last year. According to the Zambezi River Authority, the Lake Kariba water levels were sitting at 24.3% on 14 July 2025, compared with 11.5% recorded on the same date in 2025. In July 2023, Kariba's levels were at 31%. However, while the levels have improved at Kariba, the benefits have yet to be realised downstream at Cahora Bassa, as the former is not releasing much water as it is still recovering from the lower levels. Fast facts on Cahora Bassa The construction of the dam took place between 1969 and 1974, resulting in the biggest hydroelectric power plant in southern Africa. Power is generated by water passing through five vertical generator units – each producing 415MW and a total of 2,075MW. Eskom is HCB's biggest client, buying 58% of the power generated at the plant, while 39% goes to the Mozambican state-owned energy company – 3% is sold to the Zimbabwean power utility. The staff complement at HCB consists of Mozambican citizens, with 741 permanent workers and 685 seasonal workers. Another 2,000 indirect workers benefit from the plant, through its suppliers. *Source: Hidroeléctrica de Cahora Bassa (HCB) World Bank Group structure The World Bank Group comprises five organisations that specialise in differing areas, namely: The World Bank, whose official name is the International Bank for Reconstruction and Development, which lends to low- and middle-income countries; The International Development Association, which also lends to low-income countries The International Finance Corporation, which lends to the private sector; The Multilateral Investment Guarantee Agency, which 'encourages' private companies to invest in foreign countries; and The International Centre for Settlement of Investment Disputes, which mediates disputes between private investors and foreign countries. DM Sibusiso Ngalwa is a journalist, a cabbage farmer and a breeder of boer goats. His trip was sponsored by the Hidroeléctrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa plant.
Eyewitness News
9 hours ago
- Eyewitness News
Key Somalia town of Maxaas falls to Al-Shabaab
MOGADISHU - Islamist militants took control of the strategic town of Maxaas in central Somalia on Sunday after heavy fighting with the army and local militias, military sources said. The Al-Qaeda-linked Al-Shabaab has taken dozens of towns and villages since launching an offensive early this year, reversing almost all of the gains made by the government in its own military campaign in 2022 and 2023. In a statement, Al-Shabaab said it had taken the town of Maxaas, around 300 kilometres (186 miles) from the capital Mogadishu, which is considered a strategic hub for transport and logistics in the central region. Members of the Somali National Army confirmed the fall of Maxaas, though claimed it was a "tactical retreat". Mohamed Dahir, an army commander in the area, told AFP that Al-Shabaab had attacked with "car bombs and hundreds of heavily armed" fighters early on Sunday. "The brave members of the Somali army and the local community militias fought them fiercely outside town before making a tactical retreat to pre-established defensive positions outside town," he said by phone. Maxaas had been held by Ethiopian troops, part of the African Union's security force, until they handed over the military base to the Somali National Army in August 2024. The government had also relied on the support of local militias opposed to Al-Shabaab. "Al-Shabab militants managed to enter the town after heavy fighting this morning," Ali Hayo, a local militia fighter told AFP by phone, speaking from a nearby location. "There is still sporadic gunfire outside town, but I can confirm that the terrorists are now controlling Maxaas. "The fighting is not over, we are still close to the town, and we are expecting to engage in counteroffensives," he said.
IOL News
3 days ago
- IOL News
Withdrawal of CFO secondment for Free State official amid Gupta-linked fraud case
A senior Free State provincial government official has had her secondment as the acting chief financial officer of the troubled Maluti-a-Phofung Local Municipality withdrawn as she is facing fraud charges relating to a R25 million contract awarded to the Gupta-linked Nulane Investments by the province's Agriculture Department. Image: Twitter / @SAPoliceService The secondment of a senior Free State provincial government official among the accused in the R25 million fraud case involving Gupta-linked Nulane Investments as Maluti-a-Phofung Local Municipality acting chief financial officer (CFO) has been withdrawn. Free State Cooperative Governance and Traditional Affairs (Cogta) and Human Settlements MEC Saki Mokoena had initially seconded the department's deputy director-general responsible for its specialised support, advice, and intervention unit Seipati Silvia Dhlamini. Earlier this month, Mokoena seconded Dhlamini as the municipality has been without a CFO for months after the contract of Matholase Mazinyo expired in March and was not renewed. Free State Cogta and Human Settlements Department spokesperson, Zimasa Mbewu, said Mokoena has withdrawn the secondment of Dhlamini, and Thuso Ronald Marumo, formerly CFO of the Moqhaka Local Municipality in Kroonstad, has been seconded to be Maluti-A-Phofung acting CFO. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Dhlamini is accused number three in the Nulane matter and was the CFO of the provincial Agriculture Department when the company was awarded the R25m contract to conduct due diligence and feasibility studies into the R334m Vrede Diary Farm Project, part of the broader Mohoma Mobung Programme, run by Indian company Estina on behalf of the department. She has been charged with unlawfully and intentionally, and with common purpose, committing fraud. In April 2023, the Free State High Court withdrew charges against Dhlamini and her co-accused, but last month, the Supreme Court of Appeal ordered they be retried for the same offences they were acquitted of as if they had not previously been arraigned, tried, and acquitted but provided that a different judge presides over the trial. Dhlamini is charged with businessman Iqbal Sharma and his company Nulane Investments, former heads of the Free State Agriculture Department, Peter Thabethe and Limakatso Moorosi, Ronica Ragavan, who represented the fugitive Gupta family's Islandsite Investments, and Dinesh Patel, who is Sharma's brother-in-law and a Nulane Investments representative. During a council meeting in April, assets manager Tsietsi Moremi was appointed acting CFO for a period of three months or until a new permanent CFO was appointed, whichever came first. However, the following month, the council rescinded its resolution and delegated Malekula Melato, the controversial mayor of the troubled municipality, to request Mokoena to second a suitable person to act in the position until a suitable candidate has been appointed. Even before the rescission of Moremi's temporary appointment, in April, Maluti-a-Phofung Municipal Manager Advocate Motsoahae Mofokeng then informed staff in a directive that all the powers of the CFO were recalled and now in his office. 'This is informed by the fact that certain due diligence processes have to be carried out before (the) letter of appointment is dispatched. 'All managers in the finance department should thus report directly to the municipal manager's office forthwith until the said acting CFO receives an appointment letter,' Mofokeng wrote on April 4. In correspondence addressed to Melato dated July 10, Mokoena said he was only in a position to grant the request for a suitably skilled, competent, and qualified candidate in terms of Municipal System Amendment Act 03 of 2022, on such conditions as prescribed, to act in the advertised position until such time as a suitable candidate has been appointed. Mokoena set out a number of conditions including a process plan with timelines on filling of the vacant post of CFO and a provision that all additional cost associated with the secondment such as compensation of the seconded official, an allowance and compensation while on secondment for subsistence and travel etc. are borne by the municipality. Additionally, the secondment must be by agreement, which must stipulate the duration and party responsible for costs. 'The agreement must further include terms of reference, which outline that a person seconded must account to the municipal manager, report in writing at least once a month to the relevant seconding authority with regard to the key performance areas relevant to the position together with the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible,' demanded Mokoena. He said he was seconding Dhlamini and requested Melato to engage Speaker Mandlenkosi Dlamini in order to convene a council meeting on the seconded candidate to allow council to consider the appointment of the seconded candidate and table the conditions for the position of CFO. Mokoena also asked the municipality to forward a signed council resolution in terms of Municipal System Amendment Act appointing the seconded candidates to act in the relevant position after the secondment. Melato was also asked to provide regular progress reports in writing to the relevant seconding authority with regard to the filling of the post and the development and implementation of any municipal institutional recovery plan for which the seconded official is responsible. Mofokeng did not respond to requests for comment.
