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KfW supports Mozambique after devastating tropical storm

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Mozambique
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KfW
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Repairs of hydropower plants after cyclone damages visibly successful

In March 2019, terrifying images went around the world. Cyclone "Idai" hit the coast of Mozambique with wind gusts of up to 195km/h near the city of Beira. Storm and heavy rainfall destroyed public infrastructure there and in the backcountry on a considerable scale. With Sofala and Manica priority provinces of German development cooperation with Mozambique were severely affected.

On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank responded quickly and was able to contractually commit grant funds of EUR 14 million to the Mozambican government for various reconstruction measures as early as July and September 2019. In Mozambique, the funds were pledged for the repair of destroyed schools, the reconstruction of municipal infrastructure such as drinking water supply, roads and bridges in various communities, and the restoration of the Mavuzi and Chicamba hydropower plants in Manica province.

In order to quickly restore the two hydropower plants to full operational capacity, KfW, together with the Swedish government, financed an emergency support programme for the necessary repair works. In the meantime, the damaged infrastructure has been rebuilt. This includes the fortification of riverbanks and access roads, the replacement of the roof of the Mavuzi power plant, the repair of the severely bent flood gates and the transmission lines.

The two hydropower plants on the Revué River in Manica Province are the most important generation facilities operated by the state-owned electricity company Electricidade de Moçambique (EDM). The plants are responsible for more than 80% of the electricity generated for supplying the country's central provinces and the Beira corridor with electricity.

With the rapid reconstruction of important infrastructure, KfW not only quickly mitigated the consequences of this natural disaster for the two million Mozambicans directly affected, but also financed economic and social infrastructure with a Building Back Better approach.

KfW has already been promoting the rehabiltation of the two hydropower plants together with Sweden and the French development bank AFD since 2013. The cyclone hit during the rehabilitation works and has created additional challenges. The rehabilitation will help Mozambique become less dependent on expensive energy imports. KfW's promotional loan is supplemented by a BMZ grant for training and education measures to optimise EDM's financial, investment and expansion planning.

CONTACT

KfW Development Bank

+49 69 74 31-42 60

info@kfw-entwicklungsbank.de