All hydropower project type requires an ample availability of stream flow data. Unfortunately most of the hydropower projects especially small hydropower projects are conducted on ungauged river and consequently hydrologists have for a longtime used stream flow estimation methods using the mean annual flows to gauge rivers. Unfortunately flow estimation methods which include the runoff data method, area ratio method and the correlation flow methods employ a lot of assumptions which affect their uncertainty. Although hydropower energy is one of most promising clean energy technologies available, it has potential drawbacks as compared with various other forms of renewable energy, such as biomass, solar and wind energy, due in particular to it high capital investment costs. For most of the rural population in Mozambique, access to conversional energy in the form of electricity is limited. The aim of the present investigation was to analyze the functions of the Chua micro-hydropower plant in the Manica district in Mozambique and to examine the possibility of increasing energy production there. The total power generation capacity currently installed in Mozambique is about 939 MW. Hydropower accounts for 561 MW or 61% of this, oil and natural gas in turn, for 27% and 12% of it, respectively.