Cash raised from sale of shares in Mozambique’s Cahora Bassa used for modernisation work

5 December 2017

The money resulting from the sale of 7.5% of shares of the Cahora Bassa Hydroelectric (HCB) dam will be used to buy new equipment and expand the company’s business base, said on Monday the financial director of HCB, Manuel Gameiro.

The director also said some of the equipment of HCB has been in use for more than 40 years, “and the immediate priority is to modernise the electro-producer,” to ensure uninterrupted power production.

Work to build the Cahora Bassa dam, the fourth largest in Africa after Aswan (Egypt), Volta (Ghana) and Kariba (on the border between Zimbabwe and Zambia), began in 1969, and the process of filling the reservoir, with an area of 2,700 square kilometres and a maximum length of 250 kilometres, started in December 1974.

Gameiro, quoted by the Mozambican press, said the process of setting up the share sale is underway, supported by the Mozambique Stock Exchange, and through which the operation will be carried out, with technical advice from a British company.

Gameiro said the HCB shares were expected to be in high demand, when within four to five months they are sold through the Stock Exchange, as the company has a strong balance sheet and is virtually free of debts and generates a steady revenue with the sale of electricity.

At the end of last year President Filipe Nyusi announced the sale of a share of 7.5% of the 92.5% of HCB shares held by the Mozambican state, through an operation on the stock exchange intended exclusively for Mozambican nationals, including both individuals and companies.

The Portuguese company Redes Energéticas Nacionais (REN) will continue to hold the remaining 7.5% of the company. (macauhub)