Cahora Bassa and Tete Province (Mozambique): A great potential for an industrial hub in Southern Africa

Mozambique is host to the great Zambezi River Basin and the World Famous Cahora Bassa power plant that generates some 13,000 GWh annually. The bulk of this energy (85%) is exported but the revenue raised does not appear to have any appreciable impact on the host economy. Moreover it is estimated that a further 10% of the generated energy is lost along the 1414 km long transmission line to South Africa. So quite evidently, Mozambique would benefit more if its energy were utilized by locally based industry. This would also save on the losses that are currently incurred during regional transmission. In this paper the authors visit Tete, the Mozambican Province that hosts the Zambezi Basin. They examine its natural and human resources. They observe that its strategic location gives it easy access to regional markets. They also hold interviews with a number of administrators in the Province. Finally, they conclude that Tete is uniquely advantaged to develop into the next regional industrial hub for the Southern African region. This would also greatly add value to the local resources. To realize this dream will require, conviction supported by strong and timely political commitment as well as hard work. Current trends towards integrated regional trading blocks will provide an even easier access to potential markets and human skills pools.