World Bank Approves $350 Million for Malawi’s Mpatamanga Hydro Power Project

The World Bank has approved a $350 million (approximately K612.8 billion) grant facility for the Mpatamanga Hydro Power Project, according to Malawi’s Finance Minister Simplex Chithyola Banda.

He confirmed to Times that the facility was approved on Thursday. Chithyola Banda expressed optimism, saying, “Am more than happy that World Bank has demonstrated confidence and trust in us.”

He emphasized the importance of the funding, noting, “We will use the resources to maximize our efforts in the energy sector to achieve sustainable and affordable electricity and get many Malawians connected to grid.”

Highlighting energy’s role in economic growth, he added, “Remember energy is a means for production and we believe with sustainable power supply we will be able to step up on productivity leading to stimulating economic growth.”

The Mpatamanga hydroelectric project, with a capacity of 358.5 MW, will be constructed on the Shire River in Southern Malawi.

World Bank Division Director for Malawi, Tanzania, Zambia, and Zimbabwe, Nathan Belete, called the project a major opportunity for Malawi’s development.

“The Mpatamanga Hydro Power Project is a game-changer for Malawi, capable of catalyzing transformative change in productive economic sectors such as mining, agri-business and tourism,” Belete said.

He also noted, “This new source of clean and reliable energy will help drive business growth, create jobs, and improve the lives of millions of Malawians.”

The project will be implemented under a Build-Own-Operate-Transfer (BOOT) model and is expected to contribute around $1.6 billion to Malawi’s nominal GDP, according to the latest Malawi Economic Monitor.