Govt introduces Special Agriculture Electricity Tarrif to boost agriculture sector

By Chisomo Phiri

The government has announced the introduction of a Special Agriculture Electricity Tariff (SAET) which will see registered and certified farmers paying about 30 percent less the actual electricity bill.

Speaking in Lilongwe on Friday during a sensitisation meeting with district officers on the new tariff, Minister of Energy Ibrahim Matola said this is in line with the government’s vision of making Malawi a producing and exporting nation.

Said Matola: “Malawi’s economy is agro-based. So in order for our economy to flourish we need to support the agriculture sector.”

In line with Malawi Vision- Matola

The Minister said SAET will precipitate the enhancement of the Mega Farm implementation strategy in the country.

Matola said the initiative will create platforms for farmer groups organisations, cooperatives and private individuals who are practicing Irrigation farming for over 50 hectares of land.

He said the initiative is targeting those farmers who have an electricity consumption base of not more than 250KvA to quality as the requirement to participate in the initiative.

He also disclosed that those who are eligible should be registered and certified by the Ministry of Agriculture to benefit from the initiative.

He commended the Presidential Delivery Unit (PDU) for spearheading efforts that align with President Chakwera’s hunger eradication agenda and the MW2063 vision.

In her remarks, the Head of the Presidential Delivery Unit, who is also Deputy Secretary to the president, Janet Banda praised the initiative’s alignment with President Chakwera’s vision of Mega Farm initiatives.

She highlighted the Ministry of Energy’s timely efforts, foreseeing transformative benefits for farmers and the nation’s agricultural trajectory.

Banda added that the introduction of SAET will help both the private and public sectors to produce much-needed products on the market to meet the needs and demands of Malawians.

She said the government is encouraging farmers to be involved in the production of tertiary products through the initiative to create an equilibrium of demand and supply on the market.

Senior Marketing and Business Development Officer at Electricity Supply Corporation of Malawi (ESCOM) Chifundo Kameko detailed the tariff’s parameters.

He disclosed that targeted customers will fall under the low voltage maximum demand schedule and undergo certification by the Ministry of Agriculture. Upon certification, these customers will be migrated to the special Agriculture Tariff.