World Bank trashes reforms at Escom: ‘Not benefitting Malawians with continued blackouts’

The World Bank has trashed reforms at Electricity Supply Corporation of Malawi (Escom), including the unbundling of the state run power house, as not benefitting the people because of the continued power black outs.

Malawi Energy Regulatory Authority (Mera) Board Chairperson Rev. Dr. Joseph Bvumbwe (2nd left) discussing with ESCOM and MERA officials at Kapichira power station

World Bank senior private sector development specialist Ephraim Chilima said this during a meeting on Tuesday in Blantyre convened to evaluate the impact of business reforms Malawi is undertaking.

 “The reforms at Escom are not bearing the desired fruits,” said Chilima, adding, “the unbundling of Escom should have translated into action, instant improvement of power generation.”

He attributed the slow pace of the reforms results to rigidity and mentality of some government officials and unfriendly laws.

An official from ministry of Trade and Industry Esther Mwimba said  the business reforms are bearing fruits.

She gave an example at the Malawi Revenue Authority (MRA) where people can pay tax just at the touch of a button wherever they can be, office or home.

Malawi is under severe pressure to effect reforms at   Escom  and tackle corruption seriously  after threats from the US to withdraw the US$350m Millennium Challenge Account if the issues are not addressed.

The US wants the government to remove the Democratic  Progressive Party (DPP) dominated  board, tackle chronic graft at the power utility state company and the introduction of tariffs which should  be economically viable.

There have been wide reports of corruption in the procurement of materials for the MCC.

The US has also openly said the DPP  dominated boards at Escom and Electricity Generation Company (Egenco) is a contributor to the inefficiencies at the two institutions.

The MCC project aims to improve the energy sector especially in the distribution of electricity.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

  Subscribe  
newest oldest most voted
Notify of
Yahya Yahya Jammeh
Guest

Wagwa Nayo, Ephraim Chilima is graduate Economist from Swansea University in the UK, a younger brother to our VP. He was in the same class at Swansea for master’s degree with Chancy Simwaka who was recently removed from Budget Director position.

Yahya Yahya Jammeh
Guest

The same will be the case with un-bundling of UNIMA. Don’t expect positive results, rather than weakening the new universities and making MUST stronger. The whole idea is to erase the achievements of Kamuzu under MCP.

#DzukaniAmalawi
Guest
#DzukaniAmalawi

In as long as Malawi political parties cut the umbilical code from Kamuzu- type politics, all parastatal boards will be full of ruling party sympathizers. It’s just a disease that has paralyzed Malawi. South Africa has learnt its lesson after losing billion of dollars to a foreign family.

Central
Guest
Central

May be, now that its World Bank DPP government will now accept the message that Malawians are not benefiting from whatever these DPP guys are implementing at ESCOM!

Abale how can you hike electricity charges for nothing…………………………….. za ufiti basi!

Kuonanso zochita MERA ndi young democrat wao Magalasi ndiye kayansoooooo! A Malawi akukhala ku hello ya dziko la pansi ndithudi………………………………………!!

Wagwa nayo
Guest
Wagwa nayo

Is this World Bank Chilima related to our own baby Saulosi Chilima?

URIM AND THUMIM
Guest
URIM AND THUMIM

AS LONG AS DPP IS IN
POWER FORGET ABOUT ESCOM -‘-WHY ??? IT’S THEIR MILK COW —

HoRror
Guest
HoRror

What do you expect if you have pple who can not withstand their profession.. who think as if they have no heads.. investing in Genset instead of something sustainable. Learn from Ghana/Morroco … they are exporting solar generated energy to France..

Milward
Guest
Milward

Did you say Ephraim Chilima? What did you expect him to say? He is a Chilima and is on a mission. Energy challenges in this country are a result of failure to invest in power generation capacity for too long. Did you expect the reforms to improve the situation just like that? The unbundling without any increase in capacity to generate cannot result into anything. You can’t expect a national maximum generation capacity of 350MW to sustain our current energy demand.

Odala Sibweni Imbombo
Guest

Milward, you’ve hit the nail in the head. The problem is that these imperialists expected these reforms would give them an opportunity to milk poor Malawians through investments in the liberalised energy market.

Now that government is refusing to adjust upwards the tariffs to meet the imperialists’ demands nde akungolubwalubwa. These reforms can not work. The only way out of the current power challenges is for the government to invest in power generation.

brainy
Guest
brainy

Milward has just exposed his/her low IQ.

More From Nyasatimes