Hidroeléctrica de Cahora Bassa

Stock performance

History

Hidroeléctrica de Cahora Bassa (HCB) was created in 1975 to operate the Cahora Bassa dam on the Zambezi River, built by Portugal in the final years of colonial rule. Portugal retained control of the company after independence until 2007, when Mozambique took majority ownership, and HCB later sold a small stake to Mozambican investors on the local stock exchange.

Business model

HCB generates electricity from the dam's 2,075 megawatts of capacity and sells most of it to South Africa's Eskom through a long-distance high-voltage line, with the rest going to Mozambique's utility EDM and to neighboring countries.

Market position

HCB is the largest independent power producer in southern Africa and one of the biggest hydropower plants on the continent.

Country impact

HCB is one of Mozambique's most profitable state companies and a major source of export earnings and dividends to the state, and its power exports make Mozambique an important part of the southern African electricity system.