Malawi Secures USD 350 Million World Bank Grant for Transformative Hydropower Project

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The Government of Malawi has secured a USD 350 million grant from the World Bank to advance the Mpatamanga Hydropower Project, a major infrastructure initiative poised to significantly bolster the nation’s energy sector. The funding, officially confirmed on Thursday, was announced by Malawi’s Minister of Finance and Economic Affairs, Simplex Chithyola Banda.

In an interview with The Times of Malawi, Chithyola Banda expressed confidence in the development, highlighting it as a clear signal of growing international trust in Malawi’s energy reform agenda. He noted that the funds will be directed toward expanding electricity access, promoting affordable tariffs, and enhancing the reliability of power supply across both urban and rural areas. Reliable energy, he emphasised, is a key driver of productivity and will spur economic activity across multiple sectors.

The Mpatamanga Hydropower Project, to be located along the Shire River in southern Malawi, is expected to deliver an installed capacity of 358.5 megawatts. As a clean energy initiative, the project will contribute to climate change mitigation and significantly improve grid stability.

World Bank Country Director Nathan Belete described the project as a “game-changer,” capable of stimulating growth in sectors such as mining, agri-business, and tourism. He added that the stable and sustainable energy generated will lay a foundation for job creation, business development, and enhanced living standards.

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The project follows a Build-Own-Operate-Transfer (BOOT) model, allowing private sector involvement with eventual public ownership. According to the latest Malawi Economic Monitor, the initiative is expected to contribute approximately $1.6 billion to the country’s nominal GDP over its lifetime, marking a significant macroeconomic boost in alignment with Malawi’s Vision 2063 development goals.

This investment represents a critical step toward achieving Malawi’s medium-term objectives of energy security and sustainable economic growth, demonstrating how effective international cooperation and domestic policy can drive inclusive national development.