The World Bank has approved a $350 million grant to support the development of the Mpatamanga Hydropower Storage Project in Malawi. The funding, provided through the International Development Association (IDA), will help advance the country’s largest energy infrastructure project to date.
The project aims to add 358.5MW of installed capacity and generate 1,544GWh of electricity annually. Once completed, the hydropower plant is expected to provide electricity to over one million households and support thousands of jobs.
Malawi’s Minister of Energy, Ibrahim Matola, said the project is the country’s most cost-effective option for addressing growing energy demands and expanding electricity access. “Once operational, this project will help drive long-term energy security and support lasting, inclusive economic growth. Energy access is fundamental to reducing poverty, fostering economic growth, and attracting private investment,” he said.
Mpatamanga was developed by the Government of Malawi and the International Finance Corporation (IFC) as a public-private partnership. The total cost, including financing during construction, is expected to exceed $1.5 billion. In 2022, the government selected a consortium led by Electricité de France (EDF) and SN Malawi BV – owned by British International Investment, Norfund, and TotalEnergies – as the project’s strategic sponsors through an international competitive tender.
Financing will come from a mix of grants, equity, loans, and guarantees from both public and private sources. It will represent the largest foreign direct investment in Malawi to date.
Mpatamanga includes the construction of a main and regulating dam on the Shire River. It will provide power during peak demand hours and is expected to improve the reliability of the national electricity grid. The project is also expected to support electricity demand in sectors such as mining.
“This new hydropower project is a game-changer for Malawi, capable of catalyzing transformative change in productive economic sectors such as mining, agri-business and tourism. As the country works on driving its economic development agenda, this new source of clean and reliable energy will help drive business growth, create jobs, and improve the lives of millions of Malawians,“ said Nathan Belete, World Bank Division Director for Malawi, Tanzania, Zambia and Zimbabwe.
The World Bank Group is supporting several energy initiatives in Malawi. These include the Emergency Power Restoration Project to rehabilitate the Kapichira power station, the Mozambique-Malawi Regional Interconnector Project, and the Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) project, which aims to expand electricity access.
