Malawi govt plans Escom sale, liberalise energy sector

Malawi government is plotting to sell heavily-indebted Electricity Supply Corporation of Malawi (Escom) which has been monopolising the power sector.

Msaka:  Energy Minister, Escom going under the hammer?

Msaka: Energy Minister, Escom going under the hammer?

Sources at the Ministry of Energy told Nyasa Times that government will be inviting bidders through Privatisation Commission on the parastatal sale.

He added negotiations were at an advanced stage for selling a strategic stake and management rights in Escom.

The source said DPP government believes that cash from privatisation of Escom would cover up the gap of donor financing.

“Government is looking for a strategic partner for Escom,” said a source who is reliable.

A report in Malawi24 online said government is planning to sell Nkula and Tedzani Power Plants to United States of America (USA) based companies- it was not confirmed.

Civil Rights Campaigner Rafiq  Hajat  said such  decisions are  due  to “mismanagement and public appointees to positions that are not qualified in statutory bodies such as Escom and Water board.”

Hajat suggested: “Government should float Escom on stock exchange and make it available to all.”

According to Public Relations Manager for Malawi Investments Trade Centre (MITC), Deliby Chimbalu, said there are only few companies that have shown interest to invest in the country’s energy sector.

“In terms of electricity generation, we have at least four companies (from 2014 database) that have been issued with an investment certificate to produce electricity from different sources like solar, hydro, biomass and waste,” Chimbalu is on record telling Malawi News.

Chimbalu disclosed that the companies are from India, South Africa, Australia and Malawi.

She said MITC’s role in the investment facilitation process is to make sure that the investors are given all the necessary requirements for them to set up their businesses in the country and that the speed with which they need to implement their projects is dependent on the responsiveness of the Ministry of Energy.

“As you might be aware, there are several structural challenges that are rocking our energy sector. That is causing some delays for these investors to actualise their investments especially in electricity generation,” she said.

Chimbalu said all the companies are interested in generating electricity from solar power, biomass and waste.

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Kachamba
Guest

Zamuthina akungogulitsa ma company posachedwapa timva cardiac arrest.These thomas webster’s from zimbabwe they want destroy malawi,,koma amalawi kusamva bungwe lina laku Britain once advised malawian kuti akadzalamulira peter zinthu sizidzayenda bwino lero siizi!? watsala fuel asowa posachedwa sinanga boma lilibe forex ndiye uproffecor ulipati zaugalu timatcha basi!!!

Joseph Kalowekamo - PRO Energy
Guest
Joseph Kalowekamo - PRO Energy
The Ministry of Natural Resources, Energy and Mining would like to categorically refute this story. There is no grain of truth in the whole story. This is misleading the general public. The truth of the matter is that the Government, with technical and financial support from Millennium Challenge Account-Malawi, intends to unbundle ESCOM into two companies – one responsible for generation and the other for transmission and distribution of electricity. The companies will be parastatals. Therefore, the issue of selling ESCOM does not arise here. It is expected that the unbundling will enable private sector participation in generation and bring… Read more »
mmbalewakewamungopark
Guest
mmbalewakewamungopark
It is sad that government, and ESCOM officials all seem not to know about power sector. This is free piece of advice from a seasoned social development advocate. Energy is the control hub of the country’s economy. Selling ESCOM is colonising Malawi economically and Malawians shall have no say in their own land. Sack all the management and board members because they have ill-advised government. Liberalise Transmission and Distribution because that is where other players can compete on pricing and connecting customer. GOVERNMENT SHOULD CONTINUE TO OWN GENERATION WITH NEW MANAGEMENT. GENERATION IS THE ACTUAL PRODUCTION OF POWER AND GOVERNMENT… Read more »
John Muchizi
Guest

Everything we sale is what Dr. Hastings Kamuzu Banda created and developed. What is it that our children will sale. We are just selling not creating anything for the future. In the end this country will own nothing everything will be owned by foreigners…..Americans,Indians Chinese Russians. There’s nothing wrong with these organizations the problem is the wakwathu syndrome which give important national jobs to incompetent characters.

winaaaa
Guest

Heavily indebted?? For a company in such situation why is it that the top bosses change their expensive cars every few years from claimed profits from the same company?

Once again we prove that as Malawians we are a total fail. You mean we should depend on other companies in other countries to run our own things right? Shame Malawi BIG Shame

Anthony phiri
Guest

sell peter he is not making profit to our country

Mfana wa Chimiz
Guest

out of o governmets this z manyiist govert!!If u cant manage 2 run de govert surender it 2
de expartz zanyaas iz

wapankhata
Guest

Big up Mr president, ndizimene tinakusankhilani kugulisa makapani.mumalo mwachitukuko bwana.

gift wachimalawi
Guest

What kind is this stupid DPP government? selling government sector its nonsense, this government will end-up sell our Country

2mbwe
Guest

fullh supporting this develoment coz there will be competition hence good quality services

wpDiscuz

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