MOTRACO: Southern Africa’s Preferred Partner in Power Transmission

Mozambique has the largest power generation potential of all Southern African countries, with Power Africa estimating that it could generate 187 gigawatts from coal, hydro, gas, wind, and solar as the government aims to achieve universal electrification by 2030. Significant strides made toward fulfilling this goal, as the figure leapt from 34% in 2021 to 48% in 2022, with expansion driven by industry and business growth. 

Closing in on 30 years of operations, MOTRACO emerged at the close of the millennium as the result of a strategic partnership between three electricity companies from neighbouring countries, namely Electricidade de Moçambique (EDM), Eskom Holding Limited (Eskom) of South Africa and Eswatini Electricity Company (EEC) of Eswatini (Swaziland). 1997 had seen the establishment/agreement of an electricity tariff for the Mozal aluminium facility in Mozambique; with neither Eskom nor EDM able to cater to the power supply, a special purpose company had to be created to solve the conundrum.

“The collaboration between these three companies was motivated by the need to improve the electricity transmission infrastructure in the region and strengthen energy integration between the countries,” MOTRACO explains, with each of the parent companies bringing its own experience, resources and knowledge to the venture, in turn enabling the establishment of the network. According to the company, “MOTRACO continues to play a critical role in the Mozambican and Eswatini economy through maintaining a reliable transmission network.”

RELIABLE CONNECTIVITY

MOTRACO’s remit today is clear, outlines GM Aderito Manso de Sousa. “We purchase power from Eskom in South Africa for sale to the Mozal Aluminium Foundry in Mozambique, while we also transport power from Eskom to EDM and EEC,” he states.

“In addition, our organisation is responsible for managing and ensuring the continued operation of a cross-border high-speed digital telecommunications infrastructure.

“Working in conjunction with Mozambique, Eswatini and South Africa, we are committed to providing high-quality and reliable connectivity to this geographic region.” MOTRACO’s task is one of the most complex imaginable in the context of a global transmission line length which is estimated to have reached 5,615,818 Circuit Kilometres (Ckm) by the end of 2022 and which is forecast to grow to 6,666,393Ckm by 2028. Mozambique itself had some 6,357Ckm of line length in 2022, predicted at the end of last year to rise to close to 9000Ckm by 2028.

Through two high-voltage transmission lines at 400 kV, MOTRACO details, the company guarantees the continuous and uninterrupted supply of high-quality electrical energy. Its implementation has paved the way for the realisation of the mega Mozal project in Beluluane, Maputo Province, making Mozambique one of the largest exporters of aluminium to the global market.

Transporting its critical electricity throughout the territory, both to the Mozal Aluminium Smelter and to EDM and EEC for further distribution to other industries and customers in Maputo, Southern Mozambique and Eswatini respectively has been a story replete with success for MOTRACO over the last nearly 25 years, including top honours in the 25th edition of the Mozambique Top 100 Companies list, reflecting its notable position in the business landscape.

Conducted by KPMG Mozambique, the awards highlighted MOTRACO as an undisputed leader in key areas such as turnover profitability, demonstrating its exceptional financial efficiency, as well as third position in operational efficiency and impressive net results reaching MZN985 million.

Working with infrastructure more than 20 years in age presents obvious challenges, and MOTRACO is regularly called upon to intervene and find solutions to ensure that supply to customers remains continuous in both quality and quantity. “Our activities are supported by an infrastructure consisting of two MOTRACO-owned 400kV substations and 132 and 400kV transmission lines, whose operation and maintenance are also guaranteed by us,” Sousa explains.

“Our role is essentially to ensure that our three customers receive the highest quality service from us, with reliability at the forefront, and to actively ensure that our lines are always available, well-maintained and fully functional.”

LEADING OPERATOR

“The business model adopted by MOTRACO constitutes a regional and international reference in terms of investment, operation and maintenance of electrical energy transmission systems and data transmission via optical fibre,” Sousa offers.

Whilst undertaking its vital work, MOTRACO remains, “committed to the highest ethical and professional conduct, protection of the environment and social responsibility,” Sousa says. “The quality and commitment of employees and partners in maintaining MOTRACO’s record are key to the company, and we continue to invest in developing them through training.

“MOTRACO also aims to become an effective operator in the region and supports social upliftment projects across the three countries in which it operates,” he goes on, and the provision of water infrastructure at the Namaacha district’s Maternity Hospital and sponsorship of a Home Economics laboratory at a primary school in Eswatini were just two of last year’s highlights under this umbrella.

“MOTRACO endeavours to promote environmental preservation while facilitating development in operating areas,” says Sousa of the company’s ecological bent. “We recognise that we have to cohabit with other stakeholders and therefore it is important to contribute to environmental preservation.”

Looking to the future, Sousa explains that the aims remain identical for MOTRACO. “In the medium to long-term, new generation opportunities within Mozambique are being pursued by various developers, and MOTRACO aims to play an important role in wheeling this energy to Southern Africa,” he relays.

“For now, though, we will continue to strive for excellence in quality, and make sure that we serve our clients in the best way possible and that they receive exactly what they deserve and expect to assure health and growth of MOTRACO that has defined as an organisation over the past many years.”