Malawi’s energy sector is set for a major boost following the World Bank’s approval of a \$350 million grant to support the Mpatamanga Hydropower Storage Project (MHSP), the country’s most ambitious energy initiative to date.
The funding, provided through the International Development Association (IDA), will contribute to the development of a 358.5-megawatt hydropower facility on the Shire River. Once completed, MHSP is expected to generate 1,544 gigawatt-hours of renewable energy annually—enough to power over one million homes and significantly enhance national grid reliability.
Energy Minister Ibrahim Matola welcomed the development, calling the project “the most cost-effective solution to meet Malawi’s growing energy demands and drive inclusive growth.”
The project, valued at over \$1.5 billion, is being developed under a public-private partnership between the Government of Malawi and the International Finance Corporation (IFC). Strategic sponsors include Electricité de France (EDF) and SN Malawi BV, supported by British International Investment, Norfund, and TotalEnergies.
MHSP represents the largest foreign direct investment in Malawi’s history and blends funding from global development partners and private investors through a combination of grants, loans, equity, and guarantees.
Beyond power generation, the project’s dual-dam system will allow for energy storage, improving electricity availability during peak hours and supporting sectors such as mining, agriculture, and tourism.
“This is a transformative step for Malawi,” said Nathan Belete, World Bank Director for the region. “It paves the way for economic growth and improved quality of life through access to clean and reliable power.”
MHSP is part of a broader World Bank energy initiative in Malawi, which also includes projects like the Mozambique-Malawi Interconnector and the ASCENT program for rural electrification.