Mozambique has secured World Bank backing for the $6 billion Mphanda Nkuwa hydroelectric plant, a project officials and development partners say is southern Africa’s largest new hydro undertaking in 50 years and a central element of the country's plan to expand electricity access nationwide.

The government says the initiative will help Mozambique, one of the world’s poorest countries by per capita income, move toward an ambitious target of connecting all of its roughly 33 million residents, many in rural areas, to electricity by 2030 largely through renewable sources including hydroelectric and solar power.

The World Bank’s president, Ajay Banga, toured electrification projects in Mozambique in July and met entrepreneurs and community members who have seen near-term benefits from expanded power. Hermínio Guambe, a barber in a village outside the capital, told visitors that the arrival of electricity transformed his livelihood, allowing him to use hair dryers and serve more customers. A local pharmacy can now refrigerate essential medicines, and traders and transport services have picked up, creating jobs.

“These are the kinds of businesses that drive economies,” Banga said in an interview with The Associated Press during the visit. “Electricity isn’t just light, it’s a chance.”

Mozambique’s electricity access rate has increased in recent years, officials and the World Bank say, nearly doubling as new grid connections, off-grid solutions and renewable projects have been rolled out. Yet the challenge remains stark across much of sub-Saharan Africa, which the World Bank has identified as home to a large share of the global population without reliable power.

Project proponents argue that large-scale renewable projects such as Mphanda Nkuwa can supply baseload power, attract investment and lower energy costs over time, supporting broader economic development goals. The World Bank’s backing is intended to help mobilize financing and technical support for construction and related grid expansion.

Mozambique’s 2030 electrification objective places emphasis on a mix of generation sources and network reach to rural communities. Government officials and international partners say coordinated planning, investment and community engagement will be critical to delivering reliable service and addressing environmental and social considerations tied to large infrastructure projects.

The Mphanda Nkuwa initiative joins several other national and regional efforts to expand energy access and boost renewable generation across southern Africa. Officials and development institutions say progress in Mozambique could serve as a model for scaling electrification in other countries facing similar gaps in access and infrastructure.