In a landmark move set to transform Malawi’s energy landscape, the World Bank has approved a $350 million grant through the International Development Association (IDA) to support the construction of the Mpatamanga Hydropower Storage Project (MHSP). Touted as the largest energy project in the country’s history, this 358.5 MW development is a cornerstone in Malawi’s pursuit of clean energy, economic growth, and sustainable development.
Powering Progress
Once fully financed and operational, the MHSP is expected to generate approximately 1,544 gigawatt-hours of renewable electricity annually—enough to power over one million households. Beyond the numbers, the project promises widespread socio-economic benefits, including thousands of new jobs and strengthened grid reliability across the country.
“This is a top priority for us—it’s the most cost-effective way to meet our rising energy demands and unlock inclusive growth,” said Ibrahim Matola, Malawi’s Minister of Energy. “Energy access is the backbone of poverty reduction and private investment.”
A Strategic Public-Private Partnership
The Mpatamanga project is a collaborative effort between the Government of Malawi and the International Finance Corporation (IFC), structured as a public-private partnership (PPP). It is supported by a consortium of global stakeholders and is projected to exceed $1.5 billion in total investment.
Following a competitive international tender in 2022, two key sponsors were selected to spearhead the initiative: Electricité de France (EDF) and SN Malawi BV, the latter backed by British International Investment, Norfund, and TotalEnergies.
This innovative financing model—combining grants, equity, commercial loans, and guarantees—makes the MHSP the largest foreign direct investment in Malawi’s history.
Building Resilience and Reliability
Strategically located on the Shire River, the project includes two dams (main and regulating), which will not only generate power but also store energy to ensure a steady supply during peak demand periods. This energy storage capability is expected to be a game-changer, enabling Malawi to support energy-intensive sectors such as mining, agri-processing, and tourism with greater consistency.
“This is a game-changer for Malawi,” stated Nathan Belete, World Bank Country Director for Malawi, Tanzania, Zambia, and Zimbabwe. “It unlocks transformative potential across key sectors, drives business growth, and improves millions of lives through clean and reliable power.”
Part of a Larger Energy Vision
The MHSP is a central pillar in a broader World Bank-supported energy strategy in Malawi. It complements other key initiatives, including the Mozambique-Malawi Interconnector, the Kapichira Emergency Power Restoration, and ASCENT, a newly launched project aimed at accelerating last-mile energy access.
Taken together, these projects signal a decisive shift toward energy resilience, regional integration, and climate-conscious growth for Malawi.
Lighting the Way Forward
As Africa intensifies its transition toward sustainable energy systems, the Mpatamanga Hydropower Project stands out as a model of innovation, cooperation, and ambition. With strong government leadership, strategic partnerships, and significant global backing, Malawi is poised to harness its hydropower potential and electrify its path toward a brighter, greener future.
