Maputo, May 12, 2025 (Lusa) - The Cahora Bassa Hydroelectric Plant (HCB), in central Mozambique, will distribute 7.4 billion meticais (€102.6 million) in dividends to shareholders, including Portugal's Redes Energéticas Nacionais (REN), starting on Monday.
According to an HCB announcement seen by Lusa, the distribution of dividends for the 2024 financial year, worth 0.28 meticais (0.40 euro cents) per share, is the result of a decision taken at the company's general meeting on 21 April.
"From 12 May 2025, shareholders will be able to confirm receipt of dividends at banking institutions," the notice states.
HCB is a private limited company. 85% of its shares are owned by the state-owned Companhia Elétrica do Zambeze and 7.5% by REN. The company holds 3.5% of its own shares, while the remaining 4% are held by Mozambican citizens, companies, and institutions.
The Cahora Bassa reservoir is the fourth largest in Africa, with a maximum length of 270 kilometres and 30 kilometres between banks. It occupies 2,700 square kilometres and has an average depth of 26 metres. It employs almost 800 workers and is one of the largest electricity producers in southern Africa, supplying neighbouring countries.
HCB recorded profits of 14.1 billion meticais (€195.7 million) in the 2024 financial year, an increase of almost 8.5% compared to 2023, "the highest in the company's history" and the "combined corollary" of total production generated last year, of 15. 753.52 gigawatt hours (GWh), and the tariff adjustment for energy sales abroad.
"Despite water restrictions, HCB, through prudent management, achieved noteworthy financial results in 2024, the highest in its history. This is how, on net results, dividends of 52.55% were approved by the ordinary general meeting," explained Tomás Matola, chairman of the board of directors, in a note on the approval of the report and accounts.
"In particular, just over 6.5 billion meticais (€90.2 million) will be channelled to the Mozambican state, which, together with taxes and fees, will strengthen the state budget necessary for implementing the country's social programmes," he stressed.
The dam is located in a narrow gorge of the Zambezi River. Construction took place from 1969 to 1 June 1974, during the Portuguese colonial period, followed by the filling of the reservoir. Commercial operation began in 1977, with the transmission of the first 960 megawatts (MW) produced by three generators, compared to the current installed capacity of 2,075 MW.
The company previously recalled that two milestones made the project "Mozambicanisation" possible after Mozambique's independence.
The first occurred on 31 October 2006, with the signing of the protocol containing the necessary conditions for the reversion and transfer of control from Portugal to the Mozambican State, and the second materialised a year later, with the completion of the reversion on 27 November 2007.
The HCB reversal agreement allowed control of the dam to pass from the Portuguese state to its Mozambican counterpart, an event described by the then-Mozambican President, Armando Guebuza, as the "second independence of Mozambique".
HCB already plans to "reactivate" the new power plant project in the north, given the region's growing demand for electricity.
PVJ/ADB // ADB.
Lusa
