The government has secured up to US$150 million to stabilise Malawi’s fuel supply and restock the country’s depleted reserves as part of urgent measures to address the ongoing energy crisis.
Minister of Natural Resources, Energy and Mining Jean Mathanga made the announcement in Parliament on Tuesday, saying the financing was arranged through the Ministry of Finance, the Reserve Bank of Malawi, and local commercial banks, with additional support expected from the Afrexim Bank.
Mathanga said the funds will be used to ensure consistent importation of fuel and to rebuild national strategic reserves, which were completely depleted in July 2024, forcing the country to operate on a “hand-to-mouth” basis for over a year.
“Our priority is to ensure that fuel imports consistently meet national demand. The ongoing consultations with financial institutions will make it possible to maintain continuous loadings throughout November and December,” said Mathanga.
She revealed that Malawi is expecting 92 trucks of fuel to arrive in the country by Friday, translating to more than 3.2 million litres of petrol and diesel, as part of efforts to normalise the situation.
The minister cited limited foreign exchange, depleted storage reserves, and logistical bottlenecks at regional ports as key factors behind the persistent shortages. She said the government is also engaging neighbouring countries such as Mozambique to secure land in Nacala for a dedicated fuel storage facility aimed at improving supply reliability.
Mathanga further disclosed that the government has reverted to the open tender procurement system to enhance efficiency, transparency, and value for money in fuel importation, while also diversifying suppliers to reduce dependency on a few companies.
She said the government is confident that these measures will help stabilise fuel supply, support power generation, and strengthen national energy security — a critical step toward achieving industrial growth and economic stability.
“Together, we can stabilise our energy sector and power Malawi’s path to industry and prosperity,” Mathanga told Parliament.
The development comes amid ongoing fuel shortages that have disrupted transport and business operations across the country, with motorists facing long queues at filling stations despite repeated assurances of improvement.