Africa-Press – Malawi. Minister of Finance Simplex Chithyola Banda has described the $350 million World Bank grant for the Mpatamanga Hydro Power Storage Project as a game-changing breakthrough for Malawi’s energy and economic future, saying Malawians should celebrate this moment as a decisive step toward industrialization, job creation, and energy security.
The landmark agreement, signed between the World Bank Group and the Government of Malawi, will fund the construction of the 358-megawatt Mpatamanga hydropower facility, which is set to more than double the country’s current hydroelectric generation capacity by 2031.
“This is not just about building a power station. It is about building a new Malawi—one where blackouts are history, where factories run without interruption, and where young people have jobs because power is no longer a constraint,” Chithyola said following the signing ceremony.
He emphasized that the project is a cornerstone of Malawi’s long-term development ambitions, especially as it positions the country to become a regional energy player through the Malawi-Mozambique Power Interconnector, which is nearing completion.
“This is a foundation for economic transformation. With this project, Malawi will not only meet its domestic energy demands, but also earn forex by exporting power. That’s real progress,” Chithyola added.
While the World Bank’s grant provides an immediate $350 million injection, the total financing potential from global partners could rise to $1 billion—provided Malawi implements key reforms, especially in public finance management. World Bank Group division director Nathan Belete stressed that these reforms are essential to unlock the full funding package under the Public-Private Partnership (PPP) model.
But Chithyola assured Malawians and development partners that the government is already ahead of the curve.
“We have begun implementing the required financial management reforms. This administration understands the responsibility and the opportunity, and we are committed to ensuring that every dollar is accounted for and used to benefit Malawians,” he said.
With energy demand rapidly increasing and businesses struggling with supply gaps, the Mpatamanga project is widely seen as a bold answer to Malawi’s economic limitations.
“When the lights are always on, everything else follows—schools function better, clinics run efficiently, industries grow, and our children dream bigger,” Chithyola concluded.
Construction of the Mpatamanga Hydro Power Storage project is expected to begin soon, with commissioning slated for 2031.
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