Malawi Powers Up: World Bank Approves $350M Grant for Groundbreaking Mpatamanga Hydropower Project
In a bold step toward transforming Malawi’s energy future, the World Bank has approved a massive $350 million grant through the International Development Association (IDA) to support the Mpatamanga Hydropower Storage Project (MHSP)—a 358.5 megawatt infrastructure powerhouse poised to reshape the nation’s energy and economic landscape.
Once completed, and pending full private financing, MHSP will generate 1,544 gigawatt-hours of clean, renewable energy annually, lighting up over a million homes and creating thousands of job opportunities across the country.
“This is a top priority for us—it’s the most cost-effective way to meet our rising energy demands and unlock inclusive growth,” said Ibrahim Matola, Malawi’s Minister of Energy.
“Energy access is the backbone of poverty reduction and private investment.”
Jointly developed by the Government of Malawi and the International Finance Corporation (IFC) as a public-private partnership (PPP), MHSP is Malawi’s largest-ever energy project with an estimated total cost of over $1.5 billion. In 2022, an international tender led to the selection of strategic sponsors—Electricité de France (EDF) and SN Malawi BV (backed by British International Investment, Norfund, and TotalEnergies).
The project’s bold ambition is matched by its structure: a blend of grants, equity, loans, and guarantees from global development partners and private investors—making it the largest foreign direct investment in Malawi’s history.
Situated on the Shire River, MHSP’s two major dams—main and regulating—will do more than generate clean power. Their energy storage capability will ensure supply during peak hours, significantly improving the reliability of the national grid and supporting energy-intensive industries like mining, agri-business, and tourism.
“This is a game-changer for Malawi,” said Nathan Belete, World Bank Director for Malawi, Tanzania, Zambia, and Zimbabwe.
“It unlocks transformative potential across key sectors, drives business growth, and improves millions of lives through clean and reliable power.”
MHSP is part of a larger World Bank-supported energy push in Malawi, alongside landmark initiatives like the Mozambique-Malawi Interconnector, Emergency Power Restoration at Kapichira, and ASCENT—a newly launched project to accelerate last-mile energy access.
With MHSP leading the charge, Malawi is positioning itself for a brighter, greener, and more prosperous energy future.
