The Malawi government has signed a financing agreement with the World Bank’s International Development Association (IDA) for a grant of $350 million to support the Mpatamanga Hydropower Storage Project.
Speaking during the signing ceremony of the Mpatamanga Hydropower Storage Financing Agreement on Thursday, at Capital Hill in Lilongwe, Minister of Finance and Economic Affairs, Simplex Chithyola Banda expressed gratitude to the World Bank for the timely intervention which will help increase peak power generation capacity, secure green electricity and expand renewable energy trade.
According to Banda, the project involves constructing hydropower and transmission facilities, including a main dam, regulating dam, and transmission lines, which is expected to more than double the country’s current power capacity, supporting economic growth, mining, manufacturing and agricultural sectors.
“Malawi aims to become a regional power exporter within the Southern Africa Power pool (SAPP) generating foreign exchange earnings,” he said.
Banda also acknowledged the long wait for the project and emphasized government’s commitment to fulfilling conditions precedent to unlock disbursements.
He then highlighted ongoing reforms to improve ESCOM’s operation and address foreign exchange concerns.
Minster of Energy, Ibrahim Matola, hailed the signing of the grant as a major milestone in the development of the Mpatamanga Hydropower Storage Project.
“The project, which began with technical feasibility studies in 2015, is expected to transform Malawi’s energy sector and boost economic development,” he said.
According to Matola, the project will increase energy access, address power shortages and provide a high-value power commodity for domestic and regional use.
“Malawi aims to achieve 70% electrification by 2030 and the Mpatamanga Hydropower Storage Project is crucial to achieving this goal,” he said.
Meanwhile, Division Director for World Bank, Nathan Belete, said that they have approved the $350 million grant to support Malawi’s Mpatamanga Hydropower Storage Project, a landmark infrastructure operation aiming to transform the country’s energy landscape and economic development trajectory.
“The project is expected to increase the country’s installed capacity, delivering 1,544 gigawatt-hours of clean energy annually and providing electricity to over a million new households.
“The project will generate 358.5 megawatts of clean energy, effectively doubling Malawi’s installed hydropower generation capacity and supporting the country’s agenda to expand electricity access,” he stated.
Belete added that the Mpatamanga Hydropower Storage Project is a game-changer for Malawi, with the potential to catalyse transformative growth in key economic sectors such as mining, agri-business, and tourism.
“The project will provide reliable and affordable energy to support business growth, create jobs, and improve the lives of millions of Malawians,” he said.
He concluded by reaffirming the World Bank Group’s support: “We are proud to stand with Malawi and support its development ambitions.” He noted that the grant is part of a broader World Bank-supported energy drive in Malawi, which includes major initiatives like the Mozambique-Malawi Interconnector, Emergency Power Restoration at Kapichira, and the Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) project.
