Electricidade de Moçambique reports profits driven largely by dividends

Electricidade de Moçambique (EDM) reported a net profit of approximately $113 million for 2025. However, analysis shows that $111 million of this total came from dividends from partner companies, such as CEZA, which manages the Portuguese section of the Cahora Bassa dam. The company's actual operational result—derived from the purchase, transport, and sale of electricity—was roughly $32 million, representing a 3.5% margin on total revenue.

While these dividends provide a financial cushion compared to other African energy firms, concerns exist regarding whether these funds are being used to expand electrical infrastructure or merely to cover operational gaps. The Mozambican government aims to provide electricity to all citizens by 2030, but challenges remain in reaching various administrative posts.

Additionally, the development of new energy projects in Mozambique is being constrained by high capital costs and market risks. Samir Salé, Managing Director of Globeleq Energia Moçambique, noted that the country is currently viewed as a medium-to-high risk market. While the deficit in electricity access and industrial growth create significant opportunities for investment, reducing financial risks is essential to prevent upward pressure on electricity tariffs.