Mozambique’s Cahora Bassa Hydroelectric Plant (HCB) reported record profits of 14.1 billion meticais (about $219 million) in 2024, enabling the distribution of 7.4 billion meticais in dividends, the company announced Tuesday.
The decision, approved at a general meeting held on Monday, will see the Mozambican government receive over 6.5 billion meticais in dividends.
The dividends are expected to significantly improve Mozambique’s national coffers, said HCB board chairperson Tomás Matola.
“In particular, the Mozambican state will receive just over 6.5 billion meticais, which, combined with taxes and fees, will reinforce the State Budget, which is necessary for implementing the country’s social programmes,” Matola is quoted as saying in a statement issued by the company on Tuesday.
The 2024 profit represents an 8.5 percent increase from the previous year and is attributed to a combination of high energy production – 15,753.5 GigaWatt-hours – and adjustments to export tariffs, according to the statement.
HCB is Mozambique’s primary electricity producer and operates one of Africa’s largest reservoirs in Tete province.
Despite ongoing regional drought conditions, the company maintained power supply to Mozambique, South Africa and other southern African countries, thanks to improved reservoir inflows and hydropower management measures introduced in early 2024.
The Mozambican government holds a 90 percent stake in HCB, with Portugal’s Redes Energéticas Nacionais and Mozambique’s Eletricidade de Moçambique holding 7.5 percent and 2.5 percent, respectively.
Between 2022 and 2024, HCB contributed over 32.8 billion meticais to the state through taxes and concession fees, making it the country’s leading contributor in public payments.
JN/APA