In a move set to transform Malawi’s energy sector and catalyse long-term economic development, the World Bank Board of Executive Directors has approved a $350 million grant to support the Mpatamanga Hydropower Storage Project (MHSP). The funding, channelled through the International Development Association (IDA), forms part of a broader public-private partnership aiming to reshape the nation’s energy infrastructure.
The Mpatamanga project will add 358 megawatts of installed hydropower capacity and generate 1,544 gigawatt-hours (GWh) of clean, renewable energy annually — enough to supply electricity to over one million households and create thousands of job opportunities.
Powering Development Through Energy Sovereignty
Speaking at the announcement, Malawi’s Minister of Energy, Ibrahim Matola, described MHSP as a “top priority” in the government’s energy strategy:
“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.”
The project will not only double Malawi’s hydropower capacity but also support energy-intensive sectors such as mining, agri-business, and tourism — pillars of Malawi’s economic future.
A Model Public-Private Partnership
Co-developed by the Government of Malawi and the International Finance Corporation (IFC), the MHSP is a public-private partnership with an estimated total cost exceeding $1.5 billion, including financing during construction.
Following an international competitive tender, the government in 2022 selected a consortium led by Electricité de France (EDF) and SN Malawi BV — a venture backed by British International Investment, Norfund, and TotalEnergies — as strategic sponsors.
The financing will combine grants, equity contributions, concessional loans, and guarantees from development partners and private stakeholders. Once fully operational, MHSP will represent the largest foreign direct investment in Malawi’s history.
Strategic Impact on National Grid and Economic Sectors
Located on the Shire River, the MHSP involves the construction of both a main and a regulating dam, allowing electricity to be stored and dispatched during peak demand periods. This will greatly improve the reliability of the national grid, particularly vital for Malawi’s expanding mining industry and manufacturing sector.
“This new hydropower project is a game-changer for Malawi,” said Nathan Belete, World Bank Country Director for Malawi, Tanzania, Zambia and Zimbabwe. “It is capable of catalysing transformative change in key economic sectors. This clean and reliable energy source will help drive business growth, create jobs, and improve the lives of millions of Malawians.”
Part of a Broader Energy Transformation Strategy
The MHSP is part of a larger portfolio of World Bank-supported energy initiatives in Malawi. These include:
The Emergency Power Restoration Project, focused on rehabilitating the Kapichira Power Station
The Mozambique-Malawi Regional Interconnector Project, enhancing regional energy integration
The ASCENT Project (Accelerating Sustainable and Clean Energy Access Transformation), targeting rural electrification and last-mile connectivity
Together, these projects aim to position Malawi as a regional model for clean energy leadership, helping to reduce dependence on fossil fuels and enhancing climate resilience.
Africa’s Clean Energy Future
Malawi’s hydropower ambitions reflect a broader Pan-African drive toward sustainable energy development, economic diversification, and infrastructure sovereignty. By harnessing its rivers and renewable potential, Malawi is charting a path toward energy independence — one that prioritises people, planet, and prosperity.
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Source: World Bank Group
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