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.

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.