Japan is to fund the $174m construction of new gas-fired power plant in Mozambique to help the southern African nation’s fast-growing economy keep up with electricity demand.
Mozambique has seen a spike in foreign investment since it hit on huge gas reserves, but power shortages threaten the development of industry and economic growth. Power demand, which is at about 800MW at peak times, already outstrips supply of roughly 700MW in the former Portuguese colony.
The power station will add 110MW to the grid when it due to start running in 2018. On monday, the announcement was made during Japanese Prime Minister Shinzo Abe’s visit to Mozambique, part of a three-country tour of Africa, the first by a Japanese leader since 2004.