Zambia Electricity Supply Corporation (ZESCO) on 19 March signed an inter-utility memorandum of understanding (IUMoU) with Mozambique’s Electricidade de Mocambique (EDM) for the development of the Mozambique-Zambia (MOZA) power interconnector project.

The agreement was signed during the 2025 Zambia International Mining and Energy Conference (ZIMEC) held in Kitwe on 19-20 March. The scheme will involve the construction of about 375km of 400kV transmission lines running from Matambo in Mozambique's Tete province to Chipata in Zambia’s Eastern province, along with a lower-voltage link between Feira/Luangwa in eastern Zambia and Zumbo in northern Mozambique.

The main component involves constructing two single-circuit 400kV lines connecting the Matambo substation to the Chipata West 330kV substation, which is set to be upgraded. About 278km of the project will be located in Mozambique and 97km in Zambia.

The Matambo substation is a strategic facility that connects Mozambique’s central and northern transmission networks. It is currently powered by the 2,075MW Cahora Bassa hydroelectric plant (HCB) as well as other hydro and gas power plants, and is set to be supplied by the planned 1,500MW Mphanda Nkuwa hydro facility.

Zambia is currently grappling with the effects of a severe drought that has affected power generation and agriculture, impacting almost half of its population. The sharp decline in rainfall has caused a major energy crisis since hydropower accounts for 85% of the country’s total generation capacity, leading to a deficit of over 1,400MW.

The MOZA interconnector seems to be the perfect solution for Zambia’s deficit, with Mozambique’s installed capacity standing at around 2.8GW while peak domestic demand stands at just over 1 GW. The country is already a major electricity exporter in the Southern African Power Pool (SAPP) and is pursuing an US$80 billion energy transition plan that sees it playing a leading role in decarbonising the power systems in southern Africa by exporting electricity generated from renewable sources to neighbouring nations.

The feasibility study for the MOZA project was completed in February 2022, with primary funding coming from the New Partnership for Africa’s Development – Infrastructure Project Preparation Facility (NEPAD – IPPF) and SAPP. According to a late December 2024 report by the World Bank, outstanding activities on the project include the procurement of consulting services to finalise tender documents, with grant funding in the process of being mobilised for this task. The financial audit was completed in July 2023.

The overall scheme has an estimated cost of US$411.5 million, with the Zambian component accounting for US$132.4 million.

Once completed, the MOZA project is planned to be linked to the planned interconnections to  Malawi and the Democratic Republic of Congo (DRC) as well as internal reinforcement  of transmission lines within the SAPP. In the longer term, the interconnector is expected to leverage Zambia's natural geographic location bordering the East, Central and Southern African power pools to connect these markets.

Top photo: Signing of inter-utility memorandum of understanding (Source: Facebook @ Mozambique energy ministry)