President Filipe Nyusi on 27 November challenged the managers of Hidroelectrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa dam in the western province of Tete, to continue to develop as a competitive energy supplier. The President was speaking in Songo near the Zambezi River during a gala marking the 15th anniversary of the Mozambican state taking control of HCB.
According to President Nyusi, the fact that the company is running at a profit should not be a reason for HCB's managers to relax because other companies in the same sector in the southern African region are also investing. It was thus urgent to work so that HCB continues to be more competitive.
The President recommended that HCB should contribute to the acceleration of the government's plan to provide Mozambicans with universal access to energy by the end of 2030. "We want an HCB that grows and positions itself strategically in a national and regional market that is increasingly competitive", the President said. "It should be one of the main actors for the consolidation of the country's intention of becoming a regional energy hub".
He also recommended that the HCB management should not become complacent and think that they have a monopoly and can thus easily sell electricity to all neighbouring countries.
The President demanded strict observance of accounting rules and always utilising independent audits to avoid corruption and other practices contrary to good management. He added that "the benefits of the Mozambican acquisition of HCB for the economy are remarkable. This decision has served as a clear demonstration that it is possible to include Mozambicans in major financial and viable enterprises without looking at certain attributes, such as religion, race, and party affiliation".
In 2017 HCB made available four per cent of its shares which allowed the entry of about 17,000 new shareholders into the company's structure.
Regarding corporate social responsibility, President Nyusi recommended the adoption of rigorous criteria for company sponsorships. "People always think that HCB has a lot of money and everyone wants to ask for sponsorship", he said. "HCB may grant sponsorships, but without prejudicing the robust nature of the company", he stressed.
The Mozambican state took a majority holding in HCB in November 2007. Up until then, Portugal had owned over 80 per cent of the company, and most of the management was Portuguese. Today, however, HCB is completely managed by Mozambicans.
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The Chairperson of the HCB board, Boavida Muhambe, told the ceremony that the entire management, operation and maintenance of the dam and its power station "are guaranteed by a workforce of over 700 Mozambicans from all parts of the country. We are proud of this - it is Mozambicans who make Cahora Bassa work".
Muhambe promised to continue to align HCB's strategy with the country's plans for socio-economic development. "HCB will be able to adjust its strategic orientation to manage its challenges in an appropriate, responsible and sustainable way, and step up its role in the social and economic development of the country", he said.
A source in HCB told AIM that over the past 15 years the company has contributed about 50 billion meticais (US$781 million) to Mozambican state coffers.
President Nyusi also urged HCB and the publicly owned electricity distribution company, EDM, to contribute towards implementing the Mphanda Nkuwa hydroelectric project, to be built on the Zambezi River about 60 kilometres downstream from Cahora Bassa. The Mphanda Nkuwa dam will take seven years to build and will be able to generate 1,500 megawatts of power.
