Malawi Powers Up - World Bank Approves $350m Grant for Groundbreaking Mpatamanga Hydropower Project

The World Bank has approved a $350 million grant for Malawi. This funding comes from the International Development Association (IDA). It will support the Mpatamanga Hydropower Storage Project (MHSP). This project will have a capacity of 358.5 megawatts.

Once completed, MHSP will generate 1,544 gigawatt-hours of clean energy each year. It will power over a million homes and create thousands of jobs. Ibrahim Matola, Malawi's Minister of Energy, stated that this is a top priority. He emphasized that it is the most cost-effective way to meet energy demands.

Energy access is crucial for reducing poverty and attracting private investment. The Government of Malawi and the International Finance Corporation (IFC) developed MHSP as a public-private partnership (PPP). This project is Malawi's largest energy initiative, costing over $1.5 billion.

In 2022, an international tender selected Electricité de France (EDF) and SN Malawi BV as sponsors. These companies are backed by British International Investment, Norfund, and TotalEnergies. The project's funding includes grants, equity, loans, and guarantees from global partners.

MHSP represents the largest foreign direct investment in Malawi's history. Located on the Shire River, it features two major dams: main and regulating. These dams will not only generate power but also store energy for peak hours.

This storage capability will enhance the reliability of the national grid. It will support industries such as mining, agriculture, and tourism. Nathan Belete from the World Bank called it a game-changer for Malawi.

He noted that it unlocks potential across key sectors and improves lives through reliable power. MHSP is part of a broader World Bank effort to boost energy in Malawi. Other initiatives include the Mozambique-Malawi Interconnector and Emergency Power Restoration at Kapichira.

With MHSP leading these efforts, Malawi aims for a brighter and greener future in energy.