Mozambican Cahora Bassa dam with profits of 95.5ME despite drought year

The dam’s production in 2025 saw a sharp decline (-30%) compared to 2024, but ensured “the energy security of the country and the region, even in an environment of hydrological crisis.” According to information from HCB sent to Lusa, the data are contained in the company accounts, approved on April 30 at the general assembly. Highlights include the production of that dam in 2025 of 10,921 GigaWatt-hours (GWh) of electricity, a strong decline (-30%) compared to 2024, but ensuring “the energy security of the country and the region, even in an environment of hydrological crisis.” “[A] context marked by one of the most severe droughts of recent decades in the Zambezi basin, which conditioned the storage levels of the reservoir and, consequently, the energy production plan,” the company justifies. Even in this scenario, it adds, HCB “ensured the fulfillment of its commercial commitments, both in the national market and in the Southern African region,” maintaining the supply of energy to Electricidade de Moçambique (EDM), the Electricity Supply Commission of South Africa (Eskom), the Zimbabwe Electricity Supply Authority (ZESA), and the Southern Africa Power Pool (SAPP) markets.

In this way, “the energy security of the country and the region in a context of hydrological restrictions” was guaranteed. HCB is a private limited company, 85% owned by the state-owned Companhia Elétrica do Zambeze and 7.5% by the Portuguese Redes Energéticas Nacionais (REN). The company holds 3.5% of treasury shares, while the remaining 4% are in the hands of Mozambican citizens, companies, and institutions.

The Cahora Bassa reservoir is the fourth largest in Africa, with a maximum length of 270 kilometers and 30 kilometers between banks, occupying 2,700 square kilometers and an average depth of 26 meters. It has nearly 800 workers and is one of the largest electricity producers in the Southern African region, supplying neighboring countries. In 2025, according to information released this Sunday, HCB achieved revenues in the order of 344 million dollars (293.2 million euros) and a net result of 112 million dollars (95.5 million euros), “which reflects prudent management of water and financial resources.” “In the same year of 2025, the company contributed about 300 million US dollars [255.7 million euros] to the Mozambican State, through taxes, fees, and dividends, reinforcing its role as a strategic asset for the national economy and for the energy stability of the country,” said the chairman of the board of directors of HCB, Tomás Matola, quoted in the information. “The export of energy” by HCB, he added, “continued to play a relevant role in the generation of foreign currency, contributing to the robustness of the country’s balance of payments.” Previously, in 2024, HCB had recorded profits of 14.1 billion meticais (195.7 million euros), which was then a growth of nearly 8.5% compared to 2023, “being the largest in the history” of the company and the “combined corollary” of the total production generated last year, of 15,753.52 GWh, and the adjustment of the energy sales tariff abroad,” it was announced at the time.