Mozambique’s President Daniel Chapo has said his government will not bow to pressure from aluminium producer Mozal over electricity tariffs from Hidroeléctrica de Cahora Bassa (HCB), warning that the company’s proposed rates could drive the state-owned power supplier to collapse.
Speaking on Sunday after concluding his working visit to Madagascar, President Chapo stressed that negotiations were ongoing to agree on fairer tariffs. Mozal has threatened to shut down operations if talks with the government fail to secure reduced energy costs.
“The tariffs Mozal is proposing, if accepted, could push HCB into collapse,” Chapo said. “We must make it clear that the government, through HCB, which supplies, sells and exports electricity to Eskom, is defending the national interest and that of the Mozambican people. We cannot accept tariffs that would force HCB to subsidise Mozal and jeopardise its survival. That would mean sacrificing our ‘golden goose’,” he added.
Chapo reaffirmed that discussions with Mozal were continuing in search of a mutually acceptable solution, but reiterated that safeguarding HCB’s sustainability remained a priority.
The President made the remarks on the sidelines of the 45th Southern African Development Community (SADC) Summit, where Mozambique also secured commitments for regional cooperation. Among the outcomes, Chapo highlighted the adoption of a budget of around $3.5 million to ensure the full operationalisation of the SADC Humanitarian and Emergency Operations Centre, based in Nacala, Nampula province.
“This budget is crucial, especially at a time when member states face serious financial constraints. It will help us maintain humanitarian response capabilities both in Nacala and across the region,” he said.
On the margins of the summit, President Chapo also held bilateral meetings, which he said he hoped would yield tangible results. He concluded his working visit to Madagascar on Monday.
