- The World Bank approved a $350 million grant for Malawi’s Mpatamanga Hydropower Project, the country’s largest-ever foreign investment.
- The $1.5 billion project will add 358MW of capacity, doubling Malawi’s hydropower output and powering over one million households.
- EDF-led consortium to develop the project, which includes two new dams on the Shire River and aims to boost rural electrification and industrial growth.
The World Bank has approved a $350 million (MWK616.5 billion) grant for the Mpatamanga Hydropower Storage Project, marking Malawi’s most significant foreign direct investment.
The $1.5 billion (MWK2.64 trillion) project uses a public-private partnership structure. It seeks to double Malawi’s current hydropower capacity. The World Bank said the project will supply electricity to over one million new households.
Mpatamanga will add 358 megawatts (MW) to the grid. This will raise Malawi’s total hydropower capacity to more than 700 MW. Project developers aim to create thousands of jobs and expand electricity access in rural areas.
Engineers plan to build two dams between two existing power plants along the Shire River. A consortium led by Electricité de France (EDF) and SN Malawi BV will develop and manage the project.
British International Investment, Norfund, and TotalEnergies jointly own SN Malawi BV. The Malawian government selected the consortium in September 2022 to oversee project execution.
The World Bank included this funding in its wider strategy to improve infrastructure across sub-Saharan Africa. It highlighted how recurring blackouts continue to block Malawi’s economic progress.
The project will support industrialisation and attract private sector interest by increasing power generation. The developers structured the project using a blended finance model to mobilise additional funding.
“This project offers a concrete response to Malawi’s growing energy demand while attracting large-scale investment,” said the World Bank in its statement.
Only about 10% of Malawi’s rural population currently has electricity. Frequent outages hinder businesses and service delivery. Authorities view the Mpatamanga project as a vital solution to these issues.
The World Bank’s grant aims to unlock extra financing from private investors and development finance institutions. The partners expect this approach to ensure long-term project success.
Malawi relies heavily on hydropower for electricity. The sector currently supplies over 80% of its total energy. But ageing facilities and changing climate patterns have strained the country’s ability to meet demand.
Project planners designed Mpatamanga with water storage to regulate flow and meet peak electricity demand. The system will improve grid stability and cut reliance on costly diesel generators.
The developers expect to begin construction soon, although they have not announced an official start date. Once complete, Mpatamanga will serve as a cornerstone for Malawi’s development agenda.
The World Bank reaffirmed its global mission to expand clean energy access and build climate-resilient infrastructure. It plans to continue supporting countries like Malawi in developing reliable energy systems.
Malawi’s energy authorities hope this investment signals growing confidence in the country’s power sector. They aim to replicate the Mpatamanga model for future infrastructure projects and attract more long-term investment.