By Dean Chisambo
The Government of Malawi has secured a $350 million grant from the World Bank to support the long-awaited Mpatamanga Hydropower Storage Project—marking a significant step toward increasing the country’s electricity generation capacity and meeting its target of connecting 1.5 million households to the national grid by 2030.
A symbolic signing ceremony was held in Lilongwe to officially mark the deal between the Government of Malawi and the World Bank.
Speaking at the event, Minister of Finance and Economic Affairs Simplex Chithyola Banda emphasized that a country’s economy fundamentally depends on sustainable power generation. He described the Mpatamanga project as a “beacon of hope” and a potential game changer for Malawi’s economy.
“This project will bridge the electricity gap, increase production capacity, and contribute significantly to the value chain,” said Chithyola. “Ultimately, it will help expand our export base and increase foreign exchange earnings. This is indeed a game changer for our country.”
He further assured Malawians that his ministry will work closely with relevant agencies to ensure full financial implementation of the project, which is expected to commence soon. He added that the project would help eliminate blackouts and support the country’s industrialization agenda.
On behalf of the World Bank, Division Director Belete Nathan expressed optimism that the project will unlock further financing from both international and domestic private sector players.
“This grant is catalytic. It is expected to raise nearly three times its value in additional investments,” said Nathan. “But to realize this goal, the commitments made by the Government of Malawi must be implemented with urgency.”
Nathan also commended the collaborative effort already underway among the Ministries of Finance and Energy and other key government entities.
Minister of Energy Ibrahim Matola echoed these sentiments, describing energy as a key driver of economic development. He stressed the need for reliable, sustainable, stable, and affordable power in order for Malawi to achieve meaningful growth.
“We must scale up electricity generation to meet the needs of our growing population and reduce the migration of people from rural to urban areas in search of electricity,” Matola said.
He further noted that power is essential for the successful implementation of Malawi’s Agriculture, Trade, and Mining (ATM) strategy. While acknowledging that hydropower projects take time to build and commission, he assured the public that everything is on track.
“The implementers, donor partners, and other stakeholders are already on the ground at Mpatamanga to finalize site preparations as per the plan,” Matola confirmed.
The Mpatamanga project is expected to take six years to complete and will result in the establishment of a fully functional hydropower plant.
The ceremony was attended by high-profile dignitaries, including the British High Commissioner, the Norwegian Ambassador, the European Union Ambassador, representatives from the private sector, and Civil Society Organizations (CSOs).
