Mozal has announced that it will suspend operations at its aluminium smelter in Mozambique from March 15, 2026, citing its inability to secure sufficient electricity supply at competitive prices.
The decision follows extended negotiations with the Mozambican government and energy providers, at a time when drought conditions have significantly reduced electricity generation at the Cahora Bassa Hydroelectric Power Station, the country’s main source of power.
Political analyst Gustavo Mavie says the move carries serious economic and political implications for Mozambique. “Mozal is one of the country’s flagship industrial projects. Suspending operations will have ripple effects on employment, government revenue and investor confidence,” Mavie said.
He added that the situation highlights Mozambique’s vulnerability to climate-related shocks. “The drought has exposed how dependent the economy is on hydropower. Without diversification in energy sources, similar disruptions could occur again in the future,” he noted.
Mozal is a major contributor to Mozambique’s exports and industrial output, and the suspension is expected to raise concerns about the broader impact on the country’s economy.
–ChannelAfrica–
