Energy Policy

Mozambique’s $6 Billion Hydropower Gamble Highlights Risks of Globalist Development Models

By National Security Desk | September 7, 2025

The massive Mphanda Nkuwa hydroelectric project in Mozambique appears as a beacon of progress, but this World Bank-backed venture underscores the pitfalls of relying on foreign-driven mega-projects that saddle nations with crippling debt while sidelining local energy solutions.

In Mozambique, a country still emerging from decades of conflict and instability, the promise of electricity has fueled hope among millions. Hermínio Guambe, once limited to cutting hair in a powerless village barbershop outside Maputo, now operates with dryers and sees commerce accelerating thanks to newly electrified streets. Yet behind the optimistic veneer lies a sobering reality: the $6 billion Mphanda Nkuwa hydroelectric project—the largest in Southern Africa in half a century—exemplifies how globalist-backed big infrastructure projects often come with hidden costs that question national sovereignty and sustainable development.

Is Megaproject Reliance Truly Powering Mozambique’s Future?

The Mphanda Nkuwa dam aims to generate 1,500 megawatts by 2031, injecting desperately needed power into a region grappling with an estimated 10,000-megawatt deficit. Backed partially by the World Bank and major international firms like TotalEnergies and Électricité de France, this initiative is portrayed as the solution to unlock economic growth through electrification.

But at what cost? Mozambique’s public debt surged to approximately $17 billion by early 2025, with record amounts spent servicing that debt. The World Bank is clear: this is no charitable aid but a business arrangement expecting returns. This financial burden threatens Mozambique’s economic sovereignty—a key pillar of America First principles—while pushing its populace deeper into dependence on foreign capital and agendas.

Moreover, grand dams like Mphanda Nkuwa echo past patterns where externally driven megaprojects prioritize scale over grassroots empowerment. While these initiatives may fuel regional exports—Mozambique already supplies excess power to neighbors—the real challenge remains widespread rural electrification. Only about 60% of Mozambicans have access to electricity today; many remote communities remain off-grid.

Why Isn’t Localized Energy Solution Taking Priority?

Experts emphasize untapped potential in solar, wind, and smaller hydro projects tailored for rural areas where most citizens live. Over-reliance on massive infrastructure can overshadow flexible off-grid solutions better suited for Mozambique’s geography and dispersed population.

Mozambique’s story raises critical questions for America and other Western nations: Should development mean pushing mega-dams funded by international institutions focused on their returns—or supporting sovereign nations to build energy independence through practical, localized means?

This debate aligns closely with recent shifts witnessed under the Trump administration’s pushback against traditional overseas development assistance programs favoring private-sector led growth often dictated by globalist institutions. The dismantling of agencies like USAID signaled a move toward protecting American interests without compromising national sovereignty abroad.

Meanwhile, instability persists—from Islamist insurgencies that stalled multi-billion-dollar gas ventures to persistent poverty—that giant dams alone will not resolve. For families struggling daily without power, waiting for distant megaprojects feels less like hope and more like uncertainty.

The Mphanda Nkuwa project illustrates the tension between visionary infrastructure promises and pragmatic national interest. It serves as a cautionary tale about entrusting Africa’s future solely to multilateral bodies whose strategic priorities may not align with true freedom or prosperity for these developing nations.